Are you familiar with the VA home loan program? With this, you may find yourself in position to buy the home of your dreams ? all at a price you can afford. Thanks in large part to the federally backed program, many veterans are able to buy a home when they would have otherwise been left without the ability to do so.
Unfortunately, there are many myths associated with the VA home loan program. Here are five that you need to be aware of.
1. I cannot use a VA home loan to purchase a foreclosed home. Believe it or not, this is a myth. You can use this type of loan to purchase a foreclosure or a short sale, all with little to no money down. There are not nearly as many limitations as some believe.
2. A surviving spouse is unable to take advantage of the VA home loan program. This is a common myth. Fortunately, it is just that. In many cases, surviving spouses are eligible for VA benefits. If qualified, spouses can borrow up to $417,000 for the purchase of a home.
3. My realtor can show me the ropes. While there is nothing wrong with relying on an agent for help buying a home, these professionals do not typically have much knowledge regarding the VA home loan program.
Tip: you are much better off contacting a lender with experience in this area.
4. Those who are deployed overseas are unable to obtain a VA guaranteed loan. This has slowed many soldiers down over the years. This does not have to be the case, however. Active duty Military can sign a power of attorney to designate a spouse or somebody else to act on their behalf. This makes it possible for somebody deployed overseas to move forward with the purchase of a home, even if they will not return to the United States for many months.
5. It will take a very long time for a VA home loan to close. This is not true. Instead, you should expect the loan process to be similar to those that are more traditional. Lenders with experience dealing with VA loans can often times close a transaction within 30 to 60 days.
If you begin to believe any of these myths, you may find yourself making poor decisions in regards to the type of loan you use to purchase a home.
Now that you know the truth, you can learn more about the VA home loan program and whether or not you qualify. If you do and you are in the market for a home, you will find it much easier to move forward with making a purchase.