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VA Veteran Home Mortgage Loans: Debunking Myths

04/22/2010
Throughout the mortgage world there are different myths about the whole VA home loan loan process. Not many individuals know how to compare VA mortgage and conventional mortgages. Before shopping for a mortgage, get the truth on these beneficial loans.

#1 Myth: I am not eligible due to my years of service.

This rule does not apply to everyone. According to the VA handbook, the Veterans Affairs office can make exceptions for situations such as:

• Current active duty
• Compensable service-connected disability
• Discharge or release for:
• Early Out
• Convenience of the Government after 20 months service
• Reduction-in-Force
• Hardship
• Preexisting medical condition
• Certain physical or mental conditions
• Selected Reserve Including National Guard and Air National Guard o Non-remarried Living Spouse of Veteran Who Died While in Service or from a Service-Connected Disability
• Spouse of Active Military who is deemed a Prisoner of War or Missing in Action
• Service with Allied Countries in World War II
• Other Types of Qualifying Service during World War II and Later

#2 Myth: The VA benefit is only available as a first time home buyer

The VA rules indicate that it is possible to use the VA entitlement more than once:
Entitlement previously used in connection with a VA home loan may be restored under certain circumstances. Once restored, it can be used again for another VA Loan. Restoration of previously used entitlement is possible. . .

#3 Myth My credit score is low due to a home foreclosure or bankruptcy, therefore I will not qualify for a VA loan.

Once again, straight from the VA guidelines, "the fact that a bankruptcy exists in an applicant's (or spouse's) credit history does not in itself disqualify the loan."*
A VA loan can be an option, depending on the circumstances and type of bankruptcy that was filed.

Whatever the case if you are a Veteran or Active duty military it is worth your time to compare mortgage rates from different types of mortgages.

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