VA Loan Myth #1 – You Can Only Use The VA Home Loan Benefit Once.

False. If you earn a VA home loan benefit it is yours for life, and in some cases, can be used multiple times at once. Many Veterans use it again and again for their home financing needs. You can use it to buy that starter home, and then use it again to upgrade to a larger home for your growing family. And you can use it again to refinance your property for a lower interest rate or get cash out of your home’s equity. Depending on the value of each property you buy, you may or may not need to restore entitlement to reuse your benefit. As long as you have enough entitlement to back your loan, a VA loan can be a great mortgage choice for all stages of life.

VA Loan Myth #2 – VA Mortgage Loan Amounts are Limited to the County’s Conforming Loan Limit.

No VA loan limits exist after The Blue Water Act of 2020. The Blue Water Act made a significant change by removing the loan limits that previously applied to VA loans. This means that eligible veterans and service members can now obtain VA loans without any specific maximum loan amount tied to their location. As a result, veterans and service members who qualify can potentially secure larger loans for more expensive properties without having to make a down payment.

VA Loan Myth #3 – You’re Limited As Far As What You Can Do With Your VA Home Loan Benefits.

Many people believe that VA loans are only for purchasing single-family houses. But just look all the different ways to use your VA home loan benefits:

– Buy a single-family house

– Buy a condominium unit in a VA-approved complex

– Buy a multi-family property (up to 4 units per VA-eligible borrower)

– Build a home

– Buy and improve a property

– Make energy efficient improvements

– Buy a manufactured home and/or lot (certain lenders)

– Streamline refinance your VA loan for a lower rate or payment

– Cash-out or regular refinance your VA or non-VA mortgage

VA Loan Myth #4 – All VA loans require a down payment.

While conventional loans generally require down payment options that can reach up to 20%, no such thing is required with a VA home loan at or under the local conforming limit. Down payments are still an option, of course, but they are not a requirement.

The VA allows you to purchase jumbo loans, but the down payment depends on your entitlement:

• Full entitlement – 100% LTV (loan-to-value) maximum
• Partial entitlement – Maximum loan must be calculated using 25% guaranty of 1 unit county loan limit. Max LTV is lesser of max allowed or LTV required to meet 25% guaranty