There are various types of loans readily available in today’s market, such as conventional or unconventional loans. When it comes to non-conventional loans backed by the government, you can opt for the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and the Veterans Administration (VA) loans.
The VA loans, in particular, are designed to help US veterans, active duty service members, and surviving spouses purchase a house. As a mortgage broker in Salt Lake City, we will go above and beyond to help veterans find and achieve their dream homes. We have a team of highly qualified, experienced, and reliable loan officers and real estate agents who can guide you every step of the way.
Unfortunately, many myths have circulated about VA loans. But in this article, we will debunk five common misconceptions about VA loans so that you will be well-informed:
Myth 1: Requiring only one VA loan at a time
No, it doesn’t mean that you can no longer apply for another one once you already have a VA loan. The truth is that you can apply for multiple loans as long as you meet the criteria and lenders decide you can afford to pay off your debts in time. In fact, you can even submit an application for multiple loans simultaneously and get approved for most of them. If you’re out to take various VA loans, just be wary of the down payment required for your sequential loans.
Myth 2: Borrowing up to a certain loan limit
In the past, VA loans had certain restrictions as far as the loan amount was concerned. But today, lenders don’t necessarily have a ceiling amount, and they can let you borrow up to five million dollars on a VA home loan with zero down payment. As long as you don’t have outstanding debts from multiple loans, you can take advantage of financing from a lender for your home. Ultimately, you must be able to qualify and meet all the VA lending guidelines before getting approval.
Myth 3: Refinancing into a VA home loan only if you have one
Some people are under the impression that they can only refinance a VA loan that already has this type of loan. The truth is that you can refinance your other loan types to a VA loan. For instance, you may currently have an FHA or USDA loan. If you plan to refinance it to a VA loan instead, you can definitely do so. Just remember that you must meet the lender’s qualifications and requirements, and then you’re all good!
Myth 4: Having fewer chances of loan approval
Some people think that there’s a slim chance of getting approved for a VA loan. But this will only be true if you aren’t:
An active duty service member or a discharged veteran
A service member of the National Guard or the Selected Reserve
The spouse of a service member who died in the line of duty
If you tick any of the boxes above, you have a chance of getting a VA loan approval. All it takes is to obtain and submit a Certificate of Eligibility (COE) to the mortgage lender showing you’re qualified for a VA loan. In most cases, your loan application will be approved!
At this point, we’ve debunked four common misconceptions about VA loans. The truth is that you can have multiple VA loans, borrow with no certain limit, refinance your other loan types, and have a greater chance of getting approved. Ultimately, it’s best to work with a loan officer who can increase your chance of approval, help you meet the requirements, and hopefully be instrumental in your dream home purchase!
Here at Frontline Financial, we’re proud to help veterans find the best mortgage rates in Salt Lake City. If you’re planning to apply for a mortgage loan or refinance your current mortgage, get in touch with us today to see how we can help!