Military Buyer Guide
10 VA Loan Myths in 60 Seconds
The short version: ten things veterans hear about VA loans that aren't quite true.
VA loans are one of the best mortgage benefits available to eligible service members and veterans. They're also one of the most misunderstood.
Here are 10 myths I wish would finally die.
The ten myths
1. "VA means no money out of pocket."
Not exactly. VA can allow 0% down, but buyers may still have earnest money, inspections, insurance, prepaid expenses, closing costs and other cash needs.
2. "You can only use your VA loan once."
Wrong. VA is a lifetime benefit, and eligible borrowers may be able to use it more than once.
3. "The VA gives you the mortgage."
Usually, no. A private lender makes the loan and VA guarantees part of it. That's why rates, fees, lender overlays and lender competence can vary so much.
4. "If one lender denies you, you can't get a VA loan."
Not necessarily. Some lenders have overlays that are stricter than VA's own requirements.
5. "VA loans are only for people who don't have a down payment."
Absolutely not. A veteran with plenty of cash may still choose VA for the rate, no monthly PMI, keeping cash in the bank and other advantages.
6. "A VA appraisal is the same thing as a home inspection."
It isn't. The VA appraisal addresses value and certain property requirements. I still want my buyers to get an independent home inspection.
7. "The house has to be perfect to qualify for VA."
No. VA has minimum property requirements, but that doesn't mean every cosmetic flaw or minor maintenance item has to be repaired.
8. "Sellers can only pay 4% of a VA buyer's closing costs."
One of the most repeated half-truths in VA real estate. The 4% limit applies to certain VA-defined seller concessions, not every allowable closing cost a seller may pay.
9. "A conventional offer is stronger than a VA offer."
Not automatically. Offer strength depends on the buyer, lender, cash position, contingencies, appraisal exposure, timeline and terms, not just the loan type on the preapproval.
10. "VA loans always take longer to close."
They don't have to. Delays usually come from the lender, documentation, repairs, appraisal issues, title issues or poor transaction management, not simply because the financing is VA.
The bigger point
A few more things I wish every veteran knew: VA loans can sometimes be assumed, eligible buyers can use VA for more than a standard single-family house, and owning another property doesn't automatically keep you from using VA again.
The bigger point is this: don't make a major financial decision based on something a friend, agent, lender or Facebook comment told you about VA financing without checking whether it's actually true.
I spent more than a decade working with military families around Camp Lejeune. One of the reasons I care so much about VA education is that I've watched veterans leave real money and real options on the table simply because somebody in the transaction didn't understand the benefit well enough.
If you're buying in South Alabama and plan to use your VA benefit, talk with me and my team before you commit to a lender or rule out a house because somebody says "VA won't allow it."
There's a very good chance the real answer is more nuanced than that.
Check the claim before you commit.
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