The are many VA home loan myths out there that deter people from fulfilling their dream to own a home. Within the VA Loan field there tends to be multiple myths concerning when and who can be eligible for a VA Loan. Do not allow these typical misconceptions to deter you from searching into it and hopefully the data given here will assist you in securing a loan for your house. Here are a few myths explained.
Myth 1: I do not have a full 2 years of service, therefore I am not qualified.
This isn’t necessarily the truth across the board. As a general rule of thumb for eligibility, the Veteran handbook reports that a veteran is qualified for VA housing loan benefits if she or he served on active duty within the Coast Guard, Marine Corps, Air Force, Navy, or Army was discharged underneath conditions other than dishonorable following either: ninety days or more, any portion of which happened within wartime.
- 181 continual days or above (peacetime).
Two-Year Requirement: A longer length of service requirement has to be met by veterans who:
- Enlisted (then service began) following September 7th, 1980
- Was an officer, plus service started following October 16th, 1981
Those veterans have to have either completed:
- Twenty-four continual months or beyond
- The complete span for which ordered to active duty, yet not less than ninety days (any portion within wartime) or 181 continual days (peacetime).
Find additional information on VA loan misconceptions in this video.
There are multiple situations where you might reuse your VA entitlement in order to secure a housing loan, according to VA guidelines:
Entitlement that was previously utilized in conjunction with a VA housing loan might be restored underneath specific circumstances. When restored, it could be utilized again for additional VA Loans. Restoration of previously utilized entitlement is probable if:
- The property that secured the VA guaranteed loan was sold, and the loan was paid in full.
- A qualified veteran-transferee agreed to assume the outstanding balance upon the VA loan and substitute her or his entitlement for the same quantity initially utilized upon the loan. The assuming veteran has to additionally meet occupancy, credit and income requirements of the law.
- The previous VA loan was paid in full and a veteran has made application for the loan to be secured by the exact same property that secured the previous VA loan.
- The previous VA loan was paid in full, yet the veteran hasn’t disposed of the property that secured the loan.
Myth 3: I have a foreclosure or bankruptcy on my credit history, and thus am not qualified for a VA loan.
A bankruptcy within an applicant’s (or a spouse’s) credit history doesn’t in itself disqualify a loan, according to VA guidelines. A good credit history especially after the bankruptcy and length of time since the bankruptcy can be contributing positive factors towards still qualifying.
Myth 4: A VA loan can only be used once.
Guidelines apply but it is absolutely possible to use the benefit multiple times and there is no limit.
Myth 5: A VA loan can be used to buy an RV?
Unfortunately for many this is not true, same with houseboats. It must be a home with a fixed, permanent foundation.