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Breaking through the misconceptions of VA Home Loans

Breaking through the misconceptions of VA Home Loans
Posted at 7:10 AM, Nov 09, 2021
and last updated 2021-11-09 12:07:52-05

COLORADO SPRINGS — There are a lot of misconceptions about the government loans available to help our heroes purchase homes.

5News reporter, Caroline Peters spoke with Greg Murray, a former vet who now works as the national program manager for the military and veterans program. Greg says you’d be surprised how many military families hear myths about VA Loans and don’t think they’re eligible.

He says the three biggest misconceptions he hears are that VA loans are only available for first-time homebuyers, you can’t use a VA loan benefit when building a new home, and the VA Loan program benefit can’t be used for financing on a second home.

Greg says VA Loans knock down a lot of hurdles in the way of buying a home, and he says the VA is really forgiving of young families who don’t have the best credit score.

“It’s your first-time home buying, maybe you haven’t accumulated the funds necessary, it allows you to get a minimal down payment. There’s no cash reserve on a VA loan so your need for not just down payment funds but also closing costs can be relatively minimal,” said Greg Murray, National Program Manager for the Military and Veterans Program.

Another big misconception is those who have served in the National Guard cannot use VA loans. According to the U.S. Department of Veterans Affairs website, “National Guard members and reservists are eligible for a VA home loan if they have completed at least six years of honorable service, are mobilized for active-duty service for a period of at least 90 days, or are discharged because of a service-connected disability.”

The first step is filling out a certificate of eligibility. You can find that certificate here.

“That certificate of eligibility tells you, one, do I have eligibility for my VA loan, do I have an entitlement, which means I paid off any other type of VA loan I have, I can use the full benefit. If you have a disability, it will not that,” said Greg.

VA Loans can also be used on new construction properties for those who look to create their home. He says the VA puts little restrictions on loan amounts and this is a powerful home buyer tool.

Greg says when talking to your bank or mortgage company, be sure to ask them about VA Loans and have them clarify any questions you may have. He says you should be interviewing these lenders to make sure they are a good fit for a military family.

Anyone interested in learning more about the VA Home Loans should visit here.