Debunking 4 Common Myths Around VA Loans

VA loan is one of the most borrower friendly loans, and despite the various benefits associated with a VA loan, such as – zero down payment, low VA loan rates; a lot of veterans still do not opt for a VA loan. That’s because there are several myths associated with Texas VA home loans. While the VA is doing its best to spread awareness about VA loans and debunk the myths associated with them, in this post we aim at doing our bit towards clearing the myths associated with VA loans. Let’s take a quick look at some of the most common myths around Texas VA home loans.

Myth 1 – VA Loan Borrowers Must Have a High Credit Score

One of the misconceptions around VA loans is that they require an exceptionally high credit score. The fact, however, is, that while conventional loan lenders require a minimum credit score of around 740 to get the best rates and terms, a VA loan lenders require a minimum credit score of 620. The best part is that unlike conventional loans that require a four to seven year wait period after bankruptcy or foreclosure, a VA loan applicant can apply for a loan, a year after filing a Chapter 13 bankruptcy, and two years post a foreclosure.

Myth 2 – VA Loans Take Forever to Close

Many veterans do not even consider the option of VA loans because they think it may take a lot of time close. If you, too, think that VA loans, just like conventional loans, take forever to close because of the bureaucracy and paperwork involved, then that’s not true. The fact is that over the years the VA has been able to process loans faster because of greater automation and other improvements in its loan process.

Myth 3 – US Military Members Deployed Overseas are Not Eligible

Not sure where this one started from, but there’s a popular myth that military members deployed outside US are not eligible for obtaining a VA loan. The fact is that any military member deployed overseas can obtain a VA loan by signing a Power of Attorney (POA), thereby designating someone to apply for a VA loan, on their behalf. All a service member needs to do is communicate their intent to obtain a VA loan, via an email, letter or other means of documented communication.

Myth 4: It’s a OneTime Benefit

VA loan is not a one time benefit. You can apply for a Texas VA home loan as many times as long as you qualify for a VA loan. In fact, even those veterans can apply for a VA loan who lost a home to foreclosure, and that home was bought through a previous VA loan. A VA loan is a benefit given to the veterans in lieu of the unmatched services they offered to the nation, and no such myth can stop a veteran from availing that benefit.

Last Few Words

One of the biggest mistakes home loan borrowers make is rejecting a home loan option without researching about it. If you are seeking a home loan, then talk to an expert and brief them about your requirement. A home loan expert will not only help you choose the best loan available, but will also make the home loan process seem less tedious and time consuming.