When you’re looking to buy a home, you must first consider what type of home loan you should be applying for. And during this process, you may disregard VA home loans due to some secondhand horror stories you’ve heard about VA loan applications. But the things you’ve heard about VA home loans may not actually be close to the truth. Here, we’ll be debunking some of the common VA home loan myths to help you reach a more informed decision.
Only Combat Veterans Are Eligible
While it is true that not everyone is eligible for a VA home loan, it’s not just limited to combat veterans. National Guard members, reservists, active duty service members, academy cadets, PHS officers, NOAA officers, and surviving spouses can also qualify for a VA home loan.
You Have to Have an Impossibly High Credit Score
This myth is more of an exaggeration of the truth. While you do need a good credit score, it doesn’t have to be perfect. The credit requirements will vary depending on the lender, and they will use this to determine if a borrower is capable of repaying the loan. But typically, a credit score of at least 620 will be sufficient for loan approval.
Your Options Are Limited
There is this common misconception that VA home loans can only be used to purchase single-family homes. However, there are many ways you can use your VA home loan benefits. Aside from single-family homes, you can also purchase multi-family properties and condominium units in a VA-approved complex.
VA home loans are also not limited to home purchases. You can also use it to build a home or many energy-efficient improvements in your home. Streamline refinancing and regular refinancing of the VA loan are also possibilities.
You Can Only Use VA Home Loans Once
If you’ve already used your VA home loan benefit, you may think that you can no longer use it. However, this is not true. Once you earn that benefit, it is yours forever, and, in some cases, you can even use it multiple times at once.
You can maximize your VA home loan benefit by using it over and over again for your home financing needs. For example, you can use it to buy your first home. And if, later on, you want to upgrade to a larger property, you can use your VA home loan benefit for that. It can also be used to make improvements in the home you bought with your VA home loan.
In some cases, you may need to restore entitlement to reuse your benefit. The need to do so may depend on the value of the properties you buy. The bottom line is that you should always have enough entitlement to back your VA home loan.
If you are eligible for one, VA home loans can be a great mortgage option for you. There’s so much you can do with it, and you can even use it several times throughout your life. So, don’t let VA home loan myths stop you from getting the home of your dreams.
Finance your home with the help of Hawkins Home Loans. We are a licensed mortgage broker that offers different types of home loans in Sacramento, CA. Whether you’re buying a home, refinancing, or need cash from your home equity, Hawkins Home Loans is your online resource for a stress-free process, incredibly low rates, and amazing service. Schedule an appointment now!