07- 5 Most common VA myth's Busted.
1- You must have perfect credit.
FACT. Most lenders are looking for a score of 620. A perfect score is 850. Myth Busted.
2- VA appraisal is a nightmare
FACT. The VA appraisal isn't terribly different from the average conventional appraisal. Appraisers use the VA's MPR guide line (minimum property requirement) to determine if a home is safe, sound, and sanitary. Choose a hme in good condition and the appraisal will be a breeze. Myth Busted.
3- Veterans are guaranteed a loan.
FACT; No one is guaranteed a loan, even service members with loan entitlement. The VA loan "Guaranty" refers to the amount of each VA loan that is backed by the government. Remember "Guaranty" is different from "Guarantee". Myth Busted
4- I can't get a VA loan if I have a foreclosure/bankruptcy in the past.
FACT; A typical wait time for a foreclosure or chapter 7 bankruptcy is 2 years beyond the settlement date. If you are current on payments for 12 months on a chapter 13 bankruptcy you could apply now. You must however do more than just wait it out, clean up your credit history, employment history, and payment histories as a whole including clearing any insufficient funds on your bank account for the past 12 months. Myth Busted.
5- I currently have a VA loan so I cant get another one.
FACT; I hear this one all the time and honestly I was told that and believed it the entire 12 years I spend in the Marine Corps. It took getting my real estate license to learn the truth and hopefully this post will reach someone who will give their troops accurate information in regards to their VA entitlement, or better yet just invite me to your next safety stand down and I will be sure to educate the masses on your behalf. This myth is clearly busted but there are some changes to subsequent entitlement usage. There's a minimum purchase price and an increased VA funding fee, which we will cover a little later.
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