VA loans tend to get a bad rap. Many buyers, realtors, and even some lenders, consider them to be confusing and unattractive to sellers. We’re here to dispel some of these VA Loan misconceptions and set the record straight.

  • What We Hear: Sellers think VA loans are a hassle.

    • The Reality: Some sellers have the misconception that a VA appraisal takes too long to come through and that the appraisers tend to be picky about condition of the property. This isn’t necessarily true. At CB&T Mortgage we see appraisals come through in ten business days, which is standard turnaround for any loan type. Additionally, the “pickiness” of the appraisal is not dependent on the loan type, it is usually dependent on the Appraiser assessing the property.
  • What We Hear: I can only use my VA eligibility once.

    • The Reality: A Veteran can potentially use his/her VA Eligibility more than once. A few examples include:
      • If a Veteran didn’t use their VA Eligibility on their first home, they can use it on the next home they purchase
      • If a veteran pays off their VA loan in full, they get their VA Eligibility back, enabling them to use the eligibility on their next home
      • If a Veteran wants to buy another home without selling the home that was purchased using VA Eligibility
  • What We Hear: You can only use a VA loan if you’re an actual Veteran.

    • The Reality: VA Eligibility extends to active military personnel, as well as the spouses of veterans and active military. If a military spouse is currently deployed, the spouse back home is still able to move forward with a VA loan. With our home office located in Colorado Springs, and three military bases only a few miles from away, CB&T Mortgage is very familiar with VA loans and helping VA families successfully purchase homes.
  • What We Hear: The assumability of a VA loan isn’t that beneficial.

    • The Reality: Conventional loans are not assumable. VA loans (as well as FHA) can be assumable loans. An assumable loan means that a person can take over your loan, while keeping the original interest rate. For example, if rates were to go up to 7% in two years, and you have a VA loan with a 3% rate, your buyer can assume your loan, release you from liability, and keep your low interest rate. With Interest Rates currently low, this is not a very big deal, however if interest rates were to go up, having an assumable loan type could make your home more marketable than a home holding a conventional loan.
  • What We Hear: VA Interest Rates are the same no matter the lender.

    • The Reality: The lender is the one who sets the interest rate- not the VA or government. Therefore, VA rates may vary from one lender to another. At CB&T Mortgage we are very aggressive with our VA interest rates, and Veterans who work with us tend to get 6% more home than with a competing lender.

As with all loan types, there are several factors that are used to determine what loan type you should move forward with – Conventional, VA, FHA, etc.. However, if you’re a veteran or active military, and your lender isn’t first looking into a VA loan for your home purchase, you might be missing out. Contact one of our CB&T Mortgage Lenders today to learn more about VA loans and your purchase power.