The Truth about VA Home Loans: Debunking the Myths
When it comes to talking about VA home loans, there are some myths that are simply untrue. A VA home loan is a type of home loan available to eligible Veterans for the purchase of a home that will be used as a primary residence. The home loan is secured by the U.S. Department of Veterans Affairs.
The most common myths regarding VA loans are:
Myth 1: Interest rates on VA loans are too high!
The Truth: Interest rates on VA home loans are competitive with interest rates for FHA and conventional loans. Sometimes the rate for a VA home loan may be slightly lower than other interest rates. As with other loans, a Veteran has the option to choose the repayment plan. There is no down payment with a VA loan and the closing costs are limited for the Veteran.
Myth 2: VA loans are complicated and there is too much "red tape"!
The Truth: The U.S. Department of Veterans Affairs has an online portal and automated processes for VA home loans. From the first step of obtaining a Certificate of Eligibility (COE) to the lender guaranteeing the loan, the complete process can be paperless! The Tampa Bay area is also fortunate to have one of the eight VA Regional Loan Centers right here in St. Petersburg. Help is as easy as a phone call away! For a Surviving Spouse, the process cannot be completed online and does take a little bit longer.
Myth 3: VA appraisals take too long!
The Truth: A VA appraisal is processed faster than a conventional appraisal. From requesting the appraisal online to the completed appraisal being uploaded to the VA website, the entire process is paperless. The St. Petersburg Regional Loan Center requires the appraisal to be completed within ten business days.
Myth 4: VA loans are not assumable.
The Truth: VA loans are assumable. However, there are conditions and considerations a Veteran should make before a purchaser assumes the loan. The assumption of a VA loan must be approved in advance by the VA or the lender. Please talk to a knowledgeable REALTOR® or lender before letting someone assume your VA home loan.
For info on Veterans and the Military in the Tampa Bay area and applying for a VA loan: Request information! (keyword Veteran)
Giving Back - I am passionate about giving back to Veterans and the Military in the Tampa Bay area! For every Veteran or Military Servicemember I help purchase a home with a VA loan, I will make a donation to the Gramatica Family Foundation's "“Building Dreams for Combat Wounded Veterans” project, Liberty Manor for Veterans, and/or Homes for Our Troops.
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