Myths and facts about VA home loans
As the country heads into the spring housing market, BBMC Mortgage partnered with the USO to help transitioning military service members understand Veterans Affairs home loan eligibility.
Erik Volk, U.S. Army veteran and BBMC mortgage banker, recently presented USO Pathfinder, a transition preparation course, at Fort Sill, where he was stationed from 2012 to 2013.
“It’s great to get the chance to go back and help guide other transitioning soldiers through a process I had so much uncertainty about myself when I was going through the transitioning process,” he said. “I relate to them on such a high level. I sat in their exact shoes just a year ago.”
VA home loans are not just for those transitioning, but any veteran who has served honorably. Here are some VA home loan myths and facts, from Chicagobased BBMC Mortgage:
MYTH: Military service members or veterans can only use their loan benefit one time.
FACT: Those eligible can only utilize the VA home loan benefit to purchase a primary residence, but it is possible to have more than one at a time for a variety of reasons, such as moving from one duty station to another, or moving to a new job market after purchasing a home at a previous duty station.
MYTH: A military service member is eligible after serving four years on active duty.
FACT: Military members currently serving are eligible with as little as 90 days of active-duty service after training, and those who have already left the service are eligible with two years, and less in certain extenuating circumstances.
MYTH: VA loan amounts have a maximum cap.
FACT: VA loan limits can be 100 percent financed up to the county limit. Any home with a purchase price above the limit will require the veteran to pay 25 cents of every dollar over.
MYTH: Mortgage insurance is required to take out a VA home loan.
FACT: There is no mortgage insurance for a VA loan. Veterans are qualified for 100 percent financing and the VA loan requires no mortgage insurance.