VA Loan Myths Debunked

A high credit score can certainly help, but the VA doesn’t set a minimum credit score for VA loan qualification. So, lenders are free to decide their own loan eligibility requirements.

Nope. You can take advantage of VA loan benefits at any time. As long as you meet the eligibility requirements, the benefit is yours for life. Even if you’re refinancing or upgrading to a larger home, you’ll still be able to apply for a VA home loan.

Many times, it’s the opposite! A portion of every VA home loan is guaranteed by the VA, so lenders are more protected against loss. That means lenders are often able to offer loans at lower rates and waive both the down payment and the private mortgage insurance requirement—which can save you a lot of money.

Actually, no! Combat veterans are certainly eligible for VA loans, but they aren’t the only ones. Provided you meet all service requirements, you may be eligible if you’re: Active Duty, a National Guard or Reserve member, a veteran or a veteran’s surviving spouse. Others who may be eligible include cadets/midshipmen at certain military academies, public health officers and officers at the National Oceanic and Atmospheric Administration.

While VA loans don’t close faster than traditional home loans, in general, they don’t take significantly longer either.

VA loans generally have fewer costs than other home loan types. Plus, the lender is required to give you a written loan estimate that includes details like the VA funding fee (between 0.5 and 3.3% of the loan amount), closing costs and whether certain estimated amounts may increase after closing. So, some fees are different, but the total amount is usually less than you’d pay for a traditional loan.