A benefit of service in our Armed Forces is the opportunity to purchase (or refinance) a home using a Veteran Loan. These (VA) loans are designed to take some of the restrictions off the Veteran, and make the process easier and more attractive. These loans also make things easier and more beneficial for the seller.
Many real estate agents, loan officers, and sellers are not educated on these loan types, and it's creating a big problem for veterans. When presented with a VA loan offer, the agents and sellers shy away from what they don't know. Offers with conventional loans are being accepted as more desirable, and our veterans with their VA loans have somehow become chopped liver.
Allow me to shed some light on this, and dispel some myths about these loan types.
MYTH #1 - VA Loans take longer to close than conventional - FALSE
The turn time for a VA loan is actually right on target with a conventional loan in most cases. In fact, in my experience, they are clear to close more quickly because Veterans tend to have all of their documents organized and turned in to the lender in a timely manner.
MYTH #2 - VA loan appraisals come in lower than other loan types - FALSE
This is the most misunderstood myth out there and the exact opposite is true! If it appears that the appraisal may come in low, the VA appraiser will actually contact the agent for documentation defending the price to consider for the report. No other loan type allows this. I repeat "NO OTHER LOAN TYPE ALLOWS THIS." It's a wonderful thing when the appraiser says "I'm not seeing the value, help me out". This alone saves a lot of deals and promotes everyone working together to get the job done. If that doesn't define the military mindset, I don't know what does!
MYTH #3 - VA loans have low borrowing limits - FALSE
Loans have limits. The current VA loan limit is $417,000! That's comparable to, and even higher than, many FHA loans. Also, surviving spouses can take advantage of the VA loan.
The entire purpose of a VA loan is to secure financing and housing for veterans. It shouldn't be such an uphill battle to get these deals under contract, especially due to misinformation. As a Veteran buyer, working with an educated real estate agent and loan officer make all the difference. I can refer you to loan officers that specialize in VA Loans and make the process very easy.