Mortgage loans guaranteed by the Department of Veterans Affairs (VA) are usually referred to as VA mortgages or VA loans. These loans aren’t actually issued by the VA but are offered by qualified lenders to eligible veterans, active service members, and some family members. These loans are a significant benefit to eligible borrowers in Florida and other states, and they offer many advantages, including no down payment, no private mortgage insurance, very competitive interest rates, and less stringent qualification standards.

While VA loans are very advantageous to home buyers, some people may shy away from using VA mortgages. Frequently, it’s because of some myths about VA loans, which simply aren’t true:

  • VA loans are slower. Wrong. VA loans can frequently close faster than conventional mortgages. In general, though, closing times for VA loans are comparable to conventional mortgages.
  • VA buyers can’t afford expensive homes. Not true. VA borrowers can buy homes up to $417,000, which is the same conforming limit set by government entities Fannie Mae and Freddie Mac, with no down payment. For more expensive homes that are priced over the conforming limit, VA borrowers can make a down payment and obtain a VA jumbo loan.
  • VA loans are hard to get. In fact, as noted above, the income, credit and asset qualification requirements are more flexible for VA loans than conventional mortgages.
  • VA appraisals are complicated. VA loans aren’t intended for “fixer-uppers,” and the VA appraisal process is designed to weed out homes that aren’t safe or structurally sound. If the home is in good condition, the VA appraisal isn’t very different from conventional appraisals.

VA mortgages are one of the best mortgage options available today, and anyone who is eligible should consider the VA lending program. At Embrace Home Loans, we’re experts in VA lending in Brevard County and in the state of Florida, and we’ll be happy to the advantages of VA loans with you. Call us at 407-733-6425 for more information.

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