VA Loan Common Myths
With Memorial Day coming up, we want to take a second to honor the service and sacrifice of our nation’s veterans while also recognizing the wonderful benefits available to them—like the VA loan program. We’re proud to support our service members and their families by providing accurate information and unmatched service, including in-house underwriting that helps move VA loans smoothly from start to finish.
Unfortunately, VA loans are often misunderstood. So today, we’re setting the record straight on a few of the most common VA loan myths.
Myth #1: You Can Only Use a VA Loan Once
One of the biggest misconceptions is that a VA loan is a one-time benefit. In reality, eligible veterans can use their VA loan benefit multiple times throughout their lives. Whether it’s your first home or your third, if you qualify, your VA loan benefit is still available to you.
You can buy and sell and buy again, however many times you want/need to with the VA loan program. There are some differences between a first time home buyer and a repeat buyer with the VA benefits, but our loan officers know the ins and outs of the program and can walk you through them.
So, no need to “save your VA loan” for a time when you think you’ll need it most, you can use it If you want to talk about options using a VA loan, don’t hesitate to reach out.
Myth #2: VA Loans Have Higher Fees
Some lenders may claim VA loans come with excessive fees or costs, but that’s often a sign they’re not well-versed in the program.
The VA loan program actually limits the types of closing costs veterans can be charged. We specialize in VA loans and have in-house underwriters who know the ins and outs of the process, so working with us ends up being efficient, transparent, and cost-effective!
If you are told by another lender that the fees are too high–they’re WRONG! This is a red flag from a lending perspective. Come and see us instead.
Myth #3: VA Loans Take Longer to Close
Another common myth is that VA loans are slow. That might be true for lenders who aren’t familiar with the process, but not at RMN. Our experienced team and in-house underwriting helps to streamline the process to get our clients to the closing table just as quickly as any other type of loan.
If a lender is telling you it will take more than 30 days to close, run! We typically close in 3 weeks or less if we have to. We. Get. It. Done.
Myth #4: VA Sets the Interest Rate and the Cost
This is a new one we heard just recently! A lender at a bank told a buyer that it doesn’t matter where they get their VA loan because VA sets the interest rate and the cost, so one lender from another makes no difference.
This is completely false! VA does NOT set the interest rate or cost, and they certainly do vary from lender to lender. Also, the process and how smooth it is going to be for a buyer when they are using a VA loan definitely varies as well. We had an interest rate that was about a half a percent lower than this other lender, and we know our process is as smooth as it can be for buyers because we have an underwriter right in our office.
Don’t fall for this one!
Myth #4: You Can’t Have More Than 1 VA Loan at a Time
Many people believe you can only have one VA loan at a time.
Luckily, that’s not true! In reality, there are some cases where you can have more than one active VA loan at the same time. This depends on how much of your VA entitlement is still available and the loan limits in your area. Whether you’ve used your VA benefit before or are looking to purchase again, you may still be eligible. The VA is also designed for primary residences, so those considerations apply. The real key here is working with a lender who understands how to navigate the VA loan process and can help you make the most of your benefits.
This Memorial Day, we’re grateful for the opportunity to serve those who have served. If you’re a veteran or active-duty military member considering homeownership, don’t let misinformation stand in your way. Connect with us at RMN—we’re here to guide you every step of the way.
Thank you for your service. Let us help you find a place to call home.