VA loans are one of the best ways for retired veterans to buy a home. However, not everyone may understand how they function. In fact, some go so far as to make misconceptions about VA loans and be denied after applying. A VA loan is a type of loan army veterans use in order to secure housing and nothing else.
Here are some of the most common misconceptions people have about VA loans.
Veterans Who Fought are the Only Ones Eligible for a VA Loan
The first misconception about a VA loan is that only combat veterans are able to receive a VA loan. This is not true as there are multiple types of veterans who can qualify.
These types include:
- A surviving spouse
- Academy cadet
- Member of the National Guard
- Active duty
- An officer of the Public Health Service
- An officer of the National Oceanic & Atmospheric Administration (NOAA)
Before any of these veterans can get their VA loan, they must first obtain a Certificate of Eligibility.
Veterans Require a Perfect Credit Score
This is another misconception that’s not necessarily true. While it’s true that a credit score is needed to receive a VA loan, it doesn’t need to be perfect. Sure, a perfect credit score can get a veteran approved for almost any kind of loan. But when it comes to a VA loan, all they need is an average credit score, which is usually 400 to 600.
VA Loans Only Have a One-Time Use
The term “loan” can leave a sour taste in people’s mouths. Taking out a large sum of money to only be used once and be saddled with debt isn’t something to look forward to. Luckily, this isn’t the case with VA loans. In fact, VA loans can not only be used more than once; they’re also with the veterans for the rest of their life.
VA Loans Have a Long Appraisal Period
This isn’t true at all. Appraising a VA loan will take no longer than it would to appraise any other type of loan. It takes at least one week or up to an entire month, but usually too much longer than that. The VA loan lender will assure veterans of this.
VA loans are meant to help veterans step into the shoes of a regular civilian by ensuring they have a home. Taking out a loan can be nerve-wracking and reading about these misconceptions can certainly add to the anxiety, but it’s important to do thorough research and see what’s really in store for a VA loan.