Dispelling Myths about VA Loans this Veterans Day

November 9, 2021

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In today’s red-hot housing market, almost every buyer is facing challenges on their journey to homeownership. However, some military members are experiencing additional barriers due to enduring misperceptions about Veterans Affairs (VA) loans, which are a benefit available to veterans, service members and eligible military spouses looking to buy or refinance a home.

Offered by private lenders and backed by the Department of Veterans Affairs, VA loans come with low interest rates and do not require money down or private mortgage insurance — a major advantage for many young homebuyers.

However, despite all the reasons to take advantage of VA loans in today’s market, those who do often encounter reluctance to consider this “untraditional” loan from misinformed or unfamiliar sellers and agents.

This Veterans Day, First Home Bank is dispelling myths about VA loans and underscoring why all sellers should consider choosing a military buyer using one.

Myth: VA loans are hard to close.
Truth: Though VA loans were once more complicated and harder to close, the loan process has been significantly streamlined in the past two decades, making them just as easy to close as traditional loans, provided an experienced VA lender is in the mix.
 
Myth: VA loans often fall a part in the final days of a deal.
Truth: According to mortgage application software company Ellie Mae, VA loans close at a higher rate than conventional mortgages (70% vs. 51% in June 2021).
 
Myth: VA loans take forever to close.
Truth: In many instances, VA loans can close faster than traditional loans.
 
Myth: You should expect a lot of government red tape since it’s a government loan
Truth: Most VA lenders have authority from the VA to underwrite loans automatically, without submitting them to the government for approval at all.
 
Moving will always be a part of the job requirement for soldiers and their families, but this burden is somewhat lifted by VA loans. If you have a home for sale this Veterans Day (or any time of year) please give veterans, active service members and military families a fair chance at homeownership and don’t say “N-O” just because you see “V-A.”

Ready to take the next step with a VA loan? Fill out the form below to get started.

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