Updated: Jan 28
Don't Be Fooled... There are a bunch of prevailing misconceptions about VA myths you truly have to watch out for. If you're a VA buyer, these misconceptions can make it more difficult for you to buy the home you want. If you're a buyer's agent, you naturally want to steer your clients away from false information. As a listing agent, you'll need to educate yourself and the seller about how VA loans actually work. Want to know more? Below are five of the most common VA myths you can expect to encounter. If you want to read the PDF version of this blog instead, click here to download your free copy,
Myth #1: "VA Loans Take Forever to Close"
VA loans often get a bad reputation for having a long closing period. Some realtors are hesitant to deal with VA loans because of this misconception...
The truth is that Community Mortgage continues to close loans within 30 days. This is a typical timeframe for most loans. Therefore, it's a stretch to believe that VA loans take much longer than other loans to close. Like any traditional loan, you can expect to close within 30 days with Community Mortgage.
Myth #2: "Veterans Aren't Allowed to Pay Loan Fees, so The Sellers Will be Forced to Pay."
In VA loans, veterans are exempt from paying certain traditional fees. An example of this is certain lending fees. As a result, some believe that sellers will suddenly be forced to cover these lending fee since... Well, someone has to pay them right? This isn't true. Community Mortgage does not charge any "lender fees" on VA loans.
Myth #3: "The Appraisal is Too Strict."
It's completely false that VA appraisals are much more strict than other traditional loans. Actually, VA appraisals are held to the same standards as FHA loans. Like any other home appraisal, if an issue isn't affecting the safety and security of the home, there won't be a problem.
Myth #4: "VA Loans Aren't Specific in What Non-Allowable Costs Are."
Non-allowable costs are purchases veterans are not permitted to make in VA loans. Some sellers can become uneasy when this topic is brought up and become hesitant toward working with VA buyers. The truth is that the list of non-allowables for VA loans are very clear.
Myth #5: "Appraisals Usually Come in Low."
This is misleading, as appraisals in any type of home loan can come in lower than expected. However, before this happens, the VA gives fair warning to allow the listing agent to support the original listing price within 48 hours. This warning is called Tidewater. You can learn more about Tidewater by reading our article here.
Want to Learn More? If you'd like to partner with a loan officer who fully understands the rules behind VA loans, then you've come to the right place. Click here to find a Community Mortgage loan officer. If you want to pass along this information to colleagues and clients, click here to download our free resource you can use to educate yourself You can actually pair our downloadable guide with a VA offer to show a seller what it's like to work with a VA buyer.