There are many different benefits and myths when speaking of a VA home loan. The myths and the actual benefits go hand in hand when discussing them. This article will help to clear up some of the myths as well as discuss the benefits of the VA home loan that our military personnel is entitled to for serving our country.
One of the most common myths that are going around is the myth that if you are not in the military for two full years of service that you are not eligible. The actual truth regarding this matter is that if you were active duty in the Army, Air Force, Marine Corps or the Coast Guard and have been discharged for any reason other than a dishonorable discharge you are eligible. This is true if the military personnel have been active for ninety days or more during an actual wartime or during at least one hundred and eighty one days of time during peace. There are other circumstances where the person may qualify also. It is best to check the military handbook for all restrictions. Often times there are exceptions made for veterans who meet certain criteria.
A second myth is that a VA home loan can be only used for the purchase of a first home. Once again there are circumstances that make this difficult to explain. The VA guidelines can explain this in legal terms. There are many different circumstances that allow for the use of the VA entitlement to be used multiple times for the use of a home loan.
The last common myth is that a bankruptcy or foreclosure will make a person ineligible for a VA home loan. To be clear about this myth the VA guidelines state that even if an applicant has a bankruptcy or foreclosure on their credit history it will not keep them for obtaining a VA home loan. Of course the applicant will need to have been discharged from bankruptcy for a couple of years and have at least twelve months of good payment history on their current credit report.
Benefits Of A VA Home Loan
The benefits of a VA home loan out weigh the disadvantages of this type of a loan. One of the benefits is that a VA loan will allow for a person who has bad credit to obtain a loan for the purchase of a home. Often times the only type of loan that can be obtained is personal loans with bad credit specialized loans.
The other main benefit is that there is little to no cost to the applicant. Many military personnel do not have a lot of savings to put towards a home. This loan will require only a small payment at closing if any closing cost is included at all.
A VA home loan was created to help our military personnel to purchase a home for themselves and their families without a big hassle. The myths of this type of loan have always been a concern when compared with the actual benefits. If you are interested in this kind of loan and would like more information it is recommended to speak with your local VA office.