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4 VA Loan Myths Demystified
By Cixx Admin Date Posted.. 2010-07-15 16:10:30
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 By: Quin Linich

Researching is very crucial if you are currently considering a VA home loan. And while you’re at it, you can’t help but discover some funny information about getting this type of loan.

Here are the truths behind the four of the most common VA loan myths:

Myth No. 1: I have bankruptcy on my credit report and lenders won’t make a mortgage loan so I have to wait for ten years for the bankruptcy to be removed from my report.

The Truth: This is absolutely not true. What’s good about VA loans is that it has a more lenient credit guideline. It allows 2 years to pass before issuing a mortgage after bankruptcy.

Myth No. 2: I can only apply for a VA loan from the Department of Veterans Affairs.

The Truth: Actually, VA does not make loans. You can apply for a VA loan with any mortgage lender as long as the lender participates in the VA home loan program. A good example would be the VA Loan Store.

Myth No. 3: I have to be on active duty in order to qualify for a VA home loan.

The Truth: Your eligibility is based on your current and past service. According to the VA General Rules for Eligibility, you are most likely eligible for a VA loan if you have served at least 181 days from 1964 to today.

Myth No. 4: VA loan limits are lower than the regular, non-government loans.

The Truth: Loan limits usually change every year, especially if there’s a ten percent increase in home prices. Currently, zero downpayment VA loan limits range from $417,000 up to $1.094 million.

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