VA Home Loan Myths – DEBUNKED!


Did you know that there’s a huge percentage of veterans who don’t even know they have a home loan benefit? VA loans are an excellent way for veterans to purchase a home, income property, or refinance an existing one. Unfortunately, along with the lack of knowledge about the program, there are a lot of misconceptions about the VA loan process. VA loans do not have to be difficult, and having the right team in place for your home purchase is crucial.  At The Reuter Team, our team is Veteran Owned and Operated and all of our Realtors are Veteran’s and/or spouses of Veterans.

Check out this list below to help shed some light on common myths and facts on the VA home loan.

Myth #1: Veterans only have one chance to use their VA home loan benefit.

FACT: Veterans can use their benefit multiple times throughout their life.

Myth #2: You can only have one VA loan at a time.

FACT: If you used your VA benefits to purchase a home or investment property that is now being rented and you did not use all of your eligibility, you can apply the remainder to a second VA home loan.

Myth #3: VA loans can only be used to buy a house.

FACT: VA loans can be used to purchase income property (up to a 4-unit) and refinance up to 100% of the home’s value in some cases.

Myth #4: VA loans are small and only ideal for starter homes.

FACT: Many of the loans our clients get with their VA loans are $300,000+.

Myth #5: VA loans take too long to process and close.

FACT: Most VA loans don’t take any longer to close than a conventional or FHA loan. The key is working with a lender who knows the process.  The Reuter Team’s preferred lenders can close a VA loan in as little as 21-25 days if needed.  Our last VA loan was approved within 4 business days.

Myth #6: It’s too difficult to qualify for a government program.

FACT: In some ways—it’s easier to qualify for a VA loan. Typically, a slightly lower credit score and less stringent guidelines apply to VA financing.

Myth #7: VA loans are too expensive with the upfront Funding Fee.

FACT: Actually, when you do the math, a VA loan may be less than other programs. The VA funding could be financed into the loan and is a one-time fee; there is not an additional fee. In addition, funding fees are waived if:

  • Veteran receiving VA compensation for a service-connected disability, OR
  • Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
  • Veterans who are rated by VA as eligible to receive compensation as a result of pre-discharge review of existing medical evidence (including service medical and treatment records) that results in issuance of a memorandum rating, OR
  • Veterans entitled to receive compensation, but who are not presently in receipt because they are on active duty, OR
  • Surviving spouse of a veteran who died in service or from a service-connected disability (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan)

Myth #8: Vets have to be discharged or retired to use their VA loan benefit.

FACT: Active service members get full access to the VA mortgage benefit, too! (After 181 days of continuous service or 90 days during Gulf War period for active duty personnel.)

Myth #9: Members of the Reserves or National Guard are not eligible.

FACT: Members of the Reserves or National Guard are eligible after six years of honorable service, or after becoming receiving “Veteran Status”.

Myth #10: Vets who are serving away from home or overseas can’t get a loan until they can return to occupy the property.

FACT: Military men and women who are away on active duty can obtain a VA loan if they intend to return home within a year or have a spouse who will occupy the property in the interim.

Myth #11: Widows or widowers of Vets are not eligible for the VA loan benefit.

FACT: Surviving spouses of fallen veterans who died on active duty or as a result of a service-connected disability may be eligible for a VA loan.

Myth #12: I have to have my VA Certificate of Eligibility in hand before I can look for a house or apply for a loan.

FACT: Don’t let the lack of your certificate stand in the way of applying for a home loan or looking for a new home.  Our preferred lenders can request your certificate through an automated system if you do not have your certificate yet.

Myth #13: VA home loan appraisals and inspections are tougher than those for conventional or FHA financing.

FACT: VA does not appraise or inspect your home. Your lender contracts with a VA-approved appraiser who will review the property to determine a value for the home and make sure it meets VA guidelines.  These guidelines say the home must be safe, sound, and sanitary.  In basic terms, the home has to have handrails for stairs, no chipping paint if built prior to 1978, safe water/septic (if applicable), electrical boxes need covers, and that sort of stuff.   The great thing is The Reuter Team is Veteran owned and operated and has helped over 200 Veteran’s with their home purchase.  We know exactly what to look for and what to negotiate during your home inspection so we do not run into VA Appraisal issues 🙂

Myth #14: Military Discounts/Savings

FACT: When Military members buy or sell a home with The Reuter Team they save a significant amount of money through our Hero Savings Program and receive a free 1 year home warranty.  On average, Heroes save over $3,000 each when they buy or sell.  In addition, we have worked hard to partner with other industry professionals such as lenders, title companies, home inspectors, movers radon services, landscapers, painters, flooring specialists, and lots of others to provide savings to military members as well.   To find out more contact John Reuter at 608-669-4226 or send us an e-mail at

VA home loans don’t have to be difficult to understand. Hopefully, after reading this article, you have a better understanding of how and when you can use a VA loan.  If you have any questions please give us a call!



John Reuter

Team Leader/ Veteran

The Reuter Team
(608) 669-4226 (Cell)

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The Reuter Team is Veteran Owned and Operated.

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