VA Loan Myths Demystified
By USVCP Staff Writers
October 11, 2018
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.