VA Loan Myths

Did you know that mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA) — have soared since the housing crash?


During a time of tight credit and tough lending, this long-cherished program backed a record 631,151 loans in fiscal year 2015. VA loans aren’t just grabbing market share — they’re snagging headlines, too, from talk of their industry-low interest rates to their surprising safety.


But countless veterans and military families are still missing out, in part because of longstanding myths and misconceptions. A perception of red tape and bureaucracy is something VA officials continue to combat.



Myth 1: You must have perfect credit to secure a VA loan


This one is one of the most egregious myths about VA loans.



Myth 2: VA loans cost more than other traditional loans


These $0 down loans come with a host of big-time benefits that have made homeownership possible for millions of veterans and service members who might otherwise be left on the sidelines.



Myth 3: VA loans take a longer time to close than other loans


VA loans have long fought a reputation for being slow and choked with red tape.  Completely inaccurate.


VA loans also had a higher closing success rate than conventional loans throughout all of 2015.


Myth 4: No down payment makes VA loans risky business

This is one of the surprising — and surprisingly neglected — stories of the housing recovery. These $0 down loans have had the lowest foreclosure rate of any mortgage on the market for most of the past eight years, according to data from the Mortgage Bankers Association.

Note:  See full report in The Veterans Bee - February 2016.  


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