VA Loan Myths

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Hello! I was looking at this article from http://www.military.com and I thought it was too good not to share!

Here are 5 VA Loan MYTHS and the facts about the Myth!

Dismiss VA home loan myths about the federally-backed, zero down loan program.

Myth #1 – VA purchase loans are not for short-sale or foreclosed real estate
Myth #2 – Surviving spouses don’t qualify for VA mortgages
Myth #3 – Military members deployed overseas can’t get a VA-guaranteed loan.
Myth #4 – All realtors are good VA home loan advisors
Myth #5 – VA loans take forever to close

Fact #1: VA home loans can be used to purchase foreclosed and short-sale with as little as no money down.  VA-eligible borrowers may have an advantage over those who need up to 20% cash down to qualify for conventional loans.  A VA appraiser is trained to certify value and safety and can spot red flags of distressed properties.

Fact #2: Veterans, active duty and certain surviving spouses are eligible for VA home loan benefits. Qualified surviving spouses may borrow up to $417,000 (more in high-cost counties) with no money down.  And, surviving spouses are exempt from paying the VA funding fee.

Fact #3:  Military members deployed overseas can sign a document called power of attorney or (POA) designating a spouse or someone else to act as on their behalf for a VA loan transaction.  The POA grants permission for the attorney in fact to sign on behalf of the VA-eligible borrower.  The service member must give intent to obtain a VA loan through an email, letter or other correspondence. Only a spouse can satisfy the occupancy rule (move in within 60 days of closing) in a deployed serviceperson’s stead.  Otherwise, the borrower serving away from home will be granted an extension of up to 12 months to occupy the home.

Fact #4:  A VA certification for real estate agents does not exist.  Therefore, a real estate agent should not be used as a reliable source for VA loan information.  Real estate agents who are not well-informed about VA loans can even unintentionally dissuade VA-eligible borrowers from choosing the program which may be best for them.  A VA specialty lender, one whose majority product is VA-backed loans, can provide reliable VA loan facts.

Fact #5: If a lender is specialized in VA home loans, then closing can often happen within 30 days.  The VA-approved lender is given flexibility to decide on its own whether a borrower is a satisfactory credit risk.  Even a borrower with extenuating circumstances may close quickly.

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