If you are a veteran, active-duty service member or eligible surviving spouse, you can apply for a VA mortgage to purchase a home in Los Angeles with zero down.
But many qualified homebuyers hold back from claiming their VA loan benefits because of myths and misconceptions concerning the program.
These myths and misconceptions do nothing but harm VA homebuyers and prevent them from taking advantage of a great opportunity.
VA Loan Tips in Los Angeles, CA
Following are some of the most damaging myths surrounding VA mortgages.
- There are no VA benefits related to home buying. The most damaging myth concerning VA mortgages is simply that they do not exist. It is estimated that up to a third of all veterans are unaware that there even is a VA mortgage program. But if you meet the service record requirement, your VA benefits can help you purchase a home more affordably than you might imagine.
- A VA mortgage isn’t that great. The next damaging myth about VA mortgages is that this isn’t a competitive loan program. That could not be more incorrect. VA loans are some of the most desirable mortgages out there for the following reasons:
- Interest rates on VA mortgages are affordable even when you do not have a perfect credit score (see below).
- Closing costs are capped at around 3%, and in many cases, it is possible to purchase a home with a VA mortgage without paying closing costs at all.
- There is zero down payment requirement if you qualify for a VA loan. But you do not have to purchase private mortgage insurance or mortgage insurance premiums. This is an advantage over FHA and conventional mortgages with low down payments.
- If you are a qualified disabled veteran, the funding fee for your VA loan in Los Angeles may be waived.
- VA homeowners can pay off their mortgages early without incurring prepayment penalties.
You will be hard-pressed to find other types of mortgages which offer benefits that can compete with those for VA loans. So, if you have not looked into VA mortgages because you assumed it would not be worthwhile, you now can see that you have been missing out on an amazing opportunity.
- VA mortgages are extremely restricted in their use. You might assume that you can only use a VA loan to purchase a home. But this is a myth. You can build a home using a VA mortgage or make repairs or upgrades to the home you’re already in. VA refinancing also is available.
You will not qualify for a VA loan if… There are several myths concerning disqualification from the VA mortgage program. But here are some truths:
- A low credit score will NOT disqualify you from getting a VA loan by default. You do not need a high credit score to qualify for all the fantastic benefits of a VA mortgage. In fact, you can usually get away with “fair” credit, and while lenders set individual thresholds, there is no formal limit.
- A past foreclosure will NOT automatically disqualify you from getting a VA mortgage.
- A past bankruptcy also will NOT automatically disqualify you from getting a VA loan.
- Applying for a VA mortgage is complicated and slow. You might have heard that it takes ages to process a VA loan, and that you can expect all kinds of hurdles along the way. If you do not use a mortgage company which has experience with VA loans, that certainly can be true. But if your mortgage company processes VA mortgages often as a regular part of business, they are going to be able to handle the bureaucratic elements of that process effectively. Also, there are a few other things to know. One is that VA loans are faster and easier to process now than they were in the past. This has to do with improvements to the overall process. Statistically, VA mortgages close in the same amount of time on average as conventional loans. And what is more, VA loans actually close more consistently than their conventional counterparts. They are less likely to fall through.
- Your VA loan benefits expire. A lot of veterans are under the impression that they only have so many years to claim their VA loan benefits before they lose the chance forever. You might think, “What is the point in applying for a VA mortgage? I ended my service decades ago.” But there is no expiration date on your VA mortgage benefits. However long it has been, you can apply for a VA mortgage successfully.
- If you got a VA mortgage in the past, you cannot get one now. You might be thinking, “I cannot qualify for a VA mortgage. I already got one before, so that ship has sailed.” But getting a VA loan in the past does not disqualify you from getting one now. That is another myth. You can use your VA loan benefits as many times as you want.
- VA mortgages get foreclosed on all the time. Some customers avoid VA mortgages because they worry that their foreclosure rates may be high because of their lack of a down payment requirement. But in truth, VA loans are less likely to be subject to foreclosure than other types of mortgages. So, if you want to go by the statistics, they are one of the safer bets. And that shouldn’t be a surprise when you consider their many advantages. Because VA mortgages are more affordable and feature terms that are more favorable than other types of loans, it is easier to keep paying on them.
Apply for a VA Loan in Los Angeles Now
If you have questions or concerns about the VA mortgage program, I can help to clear up any misconceptions you might have and help you figure out whether a VA loan might be the right fit for your needs.
To get started now, please give me a call at (818) 601-2231 to schedule your consultation for a VA mortgage.