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VA Home Loans: Myths & Facts

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VA home loans are a top benefit of military service, and with good reason.  They are the last traditional loan program to offer 100% financing and refinancing on mortgages and have the most flexible credit guidelines available.  But even though the program has amazing things to offer, many veterans are unaware of the full magnitude of their benefit.  This sad fact can be explained when you think about how much the VA home loan program has changed over the years.  The VA loan doesn’t have to be difficult to understand, and every American veteran should be able to easily understand the benefits of this loan.  In an attempt to change the fact that a great benefit to our service men and women is misunderstood and underutilized, here’s an effort to debunk the top 10 myths of the VA loan:
  • Myth #1: Veterans only have one chance to use their VA home loan benefit.
FACT: Veterans can use their benefit multiple times throughout their life.  Actually, there’s NO limit to the number of times that you can use your VA eligibility!
  • Myth #2: VA loans can only be used to buy a house.
Fact: VA home loans can be used to refinance too – up to 100% of the home’s value in some cases!
  • Myth #3 VA loans are small and only ideal for starter homes or first time homebuyers.
FACT: VA loans can go as high as $417,000, with approved credit and income!
  • Myth #4: VA loans are complicated and take too long to process and close.
FACT: VA loans can close in the same timeframe as any other loan types. If you have anyone, including other Lender’s, tell you this, that only means that they do not understand how a VA loan works, or they are not approved to write VA home loans. The Koehn Mortgage Group is very well versed in VA financing!

  • VA Home LoanMyth #5: It’s too difficult to qualify for a government program.
FACT: In some ways – VA loans are EASIER to qualify for.   Numerous underwriting accommodations are made for veterans buying or refinancing a home with a VA loan.
  • Myth #6: VA loans are too expensive with the upfront Funding Fee.
FACT: The Funding Fee is added to the loan amount and paid over the life of the loan. Actually, when you do the math, a VA loan is often cheaper than FHA and Conventional loans!
  • Myth #7: Vets have to be discharged or retired to use their VA loan benefit.
FACT: Active service members get full access to the VA mortgage benefit too! (See eligibility chart below)
  • Myth #8: Members of the Reserves or National Guard are not eligible.
FACT: Members of the Reserves or National Guard are eligible too after 6 years of honorable service!
(See eligibility chart below)
  • Myth #9: Vets who are serving away from home or overseas can’t get a loan until they can return to occupy the property.
FACT: Military men and women who are away on active duty can obtain a VA loan if they have a spouse who will occupy the property in the interim.
  • Myth #10: Widows or Widowers of Vets are not eligible for the VA loan benefit.
FACT: Widows of fallen veterans who died on active duty or as a result of a service-connected disability may be eligible for the benefits of a VA loan. (See eligibility chart below)
VA Eligibility ChartThe Koehn Mortgage Group believes that VA loans are an excellent way for veterans to purchase a home or refinance. If you’re a veteran, talk to a Loan Consultant, with The Koehn Mortgage Group today to find out if you qualify for a VA home loan.

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