Did you know that there is a huge percentage of people who believe in a few common myths about VA loans? Needless to say, the myths and misconceptions are obstructing their ways to build a dream home. After all, VA loans are great for every veteran who wants to build a permanent roof above their heads. Moreover, many experts suggest that VA loans are among the best benefits that any veteran can access. The myths are commonly found because the loan highlights are not typically well-advertised. So, the veterans often face a usual setback due to the lack of information about the VA loans.
For example, you might have heard that VA loans take longer to close. However, this is only a myth because VA and FHA both loans take usually 40 days to close. In addition to the context, conventional mortgages take 39 days to close. For a veteran, the best VA loans for bad credit in Houston are wise options. If you can manage to present at least 550 credit scores, you are good to go.
Without further ado, let’s bust the common myths about such an affordable home loan.
Myth #1: VA home loans are for suburban properties
Laying out the truth, the best VA mortgages are open for every house as long as it meets state code or VA appraisal requirements. For example, when you are looking at a mixed-zone and mixed-use house to use it as a primary residence, VA loans can be of use. The borrowers can use the mortgage for a mobile or manufactured house, townhouse, and condominium. You can also build your dream abode by getting a VA construction mortgage.
Myth #2: VA mortgage comes with high-interest rates
Looking at the data of past years, VA loans seem to offer lower rates than FHA and conventional mortgages. When the buyer can get access to a low rate, he can save huge for the future. There is no down payment and this feature makes the loan more affordable.
Myth #3: VA loan is not growing, at present
Many veterans have heard that VA loans are not exactly growing, but let us clear the air. This is considered as one of the most popular mortgages in Texas, too bad it isn’t for everyone! In fact, VA loans have helped millions and millions of homebuyers. Needles to say, the mortgage has witnessed serious growth in the past years.
Myth #4: VA home loans are like USDA and FHA
Drawing a thin line between USDA and FHA, VA loan stands out in the crowd. USDA loans might have zero down payment feature but the borrowers are grappled with income restrictions. On the other hand, FHA loans require a 3.5% or 10% down payment along with private mortgage insurance. Now, look at the VA loans. The mortgage does not ask for a down payment. Additionally, disabled veterans can opt for a waiver of particular fees.
For more information and facts, address your queries to a professional lender right away.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.