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VA Home Loan Myths Debunked

Separating Fact from Fiction

The VA home loan program is a valuable resource for eligible military service members, veterans, and surviving spouses. However, misconceptions and myths about the program persist, causing confusion and leading to missed opportunities. This article aims to debunk some of the most common myths surrounding VA home loans and provide accurate information to help you make informed decisions.

Myth 1: VA loans are only for first-time homebuyers

Fact: VA loans are not limited to first-time homebuyers. Eligible individuals can use their VA loan benefits multiple times throughout their lifetime, as long as their previous loans have been paid off, and their entitlement has been restored.

Myth 2: VA loans require perfect credit

Fact: VA loans do not have a minimum credit score requirement set by the Department of Veterans Affairs. However, individual lenders may have their own credit score requirements, which typically range from 580 to 620. The VA loan program is more forgiving of past credit issues compared to conventional loans, making it more accessible for borrowers with less- than-perfect credit.

Myth 3: VA loans always require a down payment

Fact: One of the significant benefits of VA loans is the ability to finance 100% of the purchase price, which means that eligible borrowers can secure a mortgage without a down payment. However, if you decide to make a down payment, it can reduce your funding fee and lower your monthly mortgage payment.

Myth 4: VA loans have higher interest rates

Fact: VA loans generally have lower interest rates compared to conventional mortgages. This is because the VA guarantees a portion of the loan, reducing the risk for lenders and resulting in more favorable terms for borrowers.

Myth 5: VA loans are only for purchasing single-family homes

Fact: VA loans can be used to purchase various property types, including single-family homes, condos, multi-unit properties (up to four units), and manufactured homes. They can also be used to refinance existing mortgages and make energy-efficient improvements to a property.

Myth 6: VA loan appraisals are difficult to pass

Fact: VA loan appraisals follow the VA's Minimum Property Requirements (MPRs), which ensure that the property is safe, sound, and sanitary. While MPRs may be slightly more stringent than conventional appraisals, they are designed to protect the borrower from purchasing a home with major issues. If a property doesn't meet MPRs, repairs can often be negotiated before closing.

Myth 7: VA loans take longer to close than conventional loans

Fact: While VA loans may have slightly longer processing times due to the VA's involvement, the difference is generally minimal. With an experienced VA lender and proactive communication, VA loans can close just as quickly as conventional loans.

Myth #8: VA loans are only for low-priced homes.

Fact: VA loans can be used to finance homes at various price points, including luxury properties. While there are county-based loan limits, qualified borrowers can still purchase higher-priced homes by making a down payment on the portion of the loan amount that exceeds the limit.


Dispelling the myths surrounding VA home loans can help eligible borrowers make well- informed decisions and take full advantage of their benefits. Understanding the facts about VA home loans can open up more opportunities for military service members, veterans, and eligible surviving spouses to achieve their homeownership goals.