Solano Real Estate Scene: Let’s debunk some VA home loan myths

A lot has changed since the programs inception in 1944. The purpose of this column is to dispel some common VA myths that you have probably heard about in the past. Myth No. 1: I can’t get another VA home loan because I already used it or lost my entitlement in a foreclosure or short sale. Myth BUSTED!: Veterans can use their entitlement more than once. A veteran can have more than one VA loan at a time. Even veterans who have experienced a foreclosure may have some entitlement available. Myth No. 2: VA funding fee is high. Isn’t that a disservice to veterans? Myth BUSTED!: Absolutely not! The funding fee on a $453,100 loan is just $9,741, financed into the loan amortized over 30 years comes out to $46 per month. Comparing a zero down payment VA loan to a 3.5 percent down FHA loan and a 5 percent down conventional loan, the VA savings over seven years is enormous. A VA funding fee versus mortgage insurance wins the day. As a side note: If a veteran has any service-connected disability, the veteran is exempt for funding fee. Myth No. 3: Jumbo financing is not available for VA loans. Myth BUSTED!: VA has no limit on the loan amount, only the amount of guaranty. My company goes to $1.5 million max VA loan. Myth No. 4: You cannot purchase another home with a VA loan if you currently own a home. Myth BUSTED!: You can rent out your current home and use a VA loan to purchase a new, larger home, or even downsize. Myth No. 5: VA loans cost the buyer and seller more money. Myth BUSTED!: You can get a VA loan with no money down. You can borrow up to 100 percent of the home’s value and more with energy improvements. You can even buy a one- to four-unit property as your primary home and earn rent on the other units to help pay the mortgage. There are no VA-required costs to the seller and now the buyer can even pay for the termite report along with any and all repairs.