Veterans, active-duty military personnel, and select Reservists or National Guard members have served this country which qualifies them for the benefit of a VA Mortgage loan. The Veterans Affairs home loans are mortgage options that allow current and former members of the military to own a piece of the American dream by potentially qualifying for homes with more favorable rates, minimal fees and better terms.

These mortgage loans come with outstanding benefits like no down payment, no mortgage insurance, more lenient credit requirements with the lowest average interest rates on the market. This may also allow for qualification of a slightly larger loan because of the lower cost.

The National Association of Realtors (NAR) 2021 Profile of Home Buyers and Sellers showed that 14 percent of home buyers are veterans and 3 percent are active-duty. However, misbeliefs about VA loans along with bidding wars in the Northern VA market, continue to hinder many veterans from actually benefiting from this program. VA mortgages are a tangible way of showing gratitude towards their service and should not be a hinderance in the open market.

Here are a few VA loans most common misinformation.

VA loans take much longer to close than FHA or conventional loans.

FACT: There is little difference when closing VA loans compared to other loans.

Many home buyers and sellers in Northern VA think that VA loans take more than 60 days to close. The process has become much more automated and efficient with the Guaranty Program, and it can now be closed in 30 days or less. Here at the J Group, we have lenders who have closed as fast as 21 days.

Similarly, the average VA mortgage closes in 45 days, according to mortgage industry analysts Ellie Mae. While the average closing time for all loans is 42 days, which only has a three-day difference.

It’s a one-time benefit.

FACT: VA loan is a lifetime benefit.

Some veterans think they must use the benefit immediately, or think if they used it once, they can't use it again. The fact is that it is a lifetime benefit. You can use it again to purchase another property, as long as you have paid off your previous VA loan. A veteran can’t have 2 VA loans simultaneously.

The VA appraisal is quite a nightmare.

FACT: The VA appraisal isn't really different from the average conventional appraisal.

Only VA-approved appraisers inspect the homes to confirm they meet minimum property requirements, and they are “safe, sound and sanitary.” VA appraisers tend to have stricter standards than a typical home appraiser. If the buyer pursues a home in a very poor condition, then the appraisal process could really be terrible. Otherwise, if the service member chooses a home that is in good condition, then the VA appraisal will be a breeze.

You can’t get a VA loan if you’ve had a foreclosure or bankruptcy.

FACT: VA loans only require that there has not been a foreclosure or bankruptcy in the past two years.

VA loans are much more lenient than other loan products when it comes to bankruptcy and foreclosure. In some cases, it is also possible to get a loan within a year. This is a much shorter period compared to what FHA loans and conventional mortgages require, which includes a 3-year waiting period.

Hiring any real estate agent will do.

FACT: An agent who's had experience working with military buyers can help you better navigate the process.

Yes, any realtor can technically help you. However, finding a military-friendly real estate agent who particularly had experienced working with military buyers before — and have the time to focus on your needs — can make a big difference. For many veterans, housing needs go far beyond the usual housing criteria, such as the number of bedrooms, price range and location. An agent who specializes in VA loans can help save you an awful lot of headaches as they better understand the loan process, the VA appraisal, and has a special eye and heart towards your specific situation.

When selling your home an experienced agent will know and be able to identify any repairs needed to make your home VA loan friendly.

Bottom Line

In the service to our country, veterans and active duty military should leverage VA loans to their benefit of homeownership. Understanding fact vs fiction is a must along with a knowledgeable real estate agent to cash in on this exceptional opportunity to each who have defended our country.