“Rumors are carried by haters, spread by fools, and accepted by idiots,” Ziad K. Abdelnour famously said. When it comes to VA loans, misconceptions run rampant, preventing many deserving veterans and military families from taking advantage of one of their greatest earned benefits. It’s time to clear up these myths and set the record straight. Whether you’re stationed at Ft. Carson, Peterson AFB, Schriever AFB, or the Air Force Academy, or settled into civilian life in Colorado Springs, understanding VA loans clearly can help you make an informed and confident decision about homeownership.
Myth #1: VA Loans Require Perfect Credit
The truth? VA loans are one of the most forgiving loan products available. Many veterans mistakenly think their credit must be flawless, but the VA doesn’t set a minimum credit score. Instead, individual lenders establish their own criteria. Typically, you can qualify with scores as low as 580, making it accessible even if you’ve faced past financial challenges.
Pro tip: Working with a mortgage broker in Colorado Springs can help you find lenders specializing in flexible VA loan qualifications.
Myth #2: You Can Only Use Your VA Loan Once
One-and-done? Absolutely not. Your VA loan entitlement can be used multiple times, provided you’ve restored your entitlement through loan repayment or refinancing. You could buy, sell, and then use a VA loan again, making it ideal for military members frequently on the move.
Myth #3: VA Loans Have Higher Interest Rates
Quite the opposite. VA loans often feature interest rates that are lower or highly competitive compared to conventional loans, potentially saving you thousands over the life of your mortgage. Always check with your local Colorado Springs mortgage broker for the best rates.
Myth #4: VA Loans Are Only for Single-Family Homes
This myth might be holding back aspiring real estate investors. VA loans aren’t limited to single-family properties; they can finance duplexes, triplexes, or fourplexes, provided you live in one of the units. This opens up exciting house-hacking possibilities for savvy Colorado Springs veterans.
Myth #5: Closing Costs Are Covered by the VA
While VA loans reduce upfront costs by eliminating the need for a down payment, closing costs are not automatically covered by the VA. However, savvy buyers often negotiate for sellers to cover these costs, minimizing out-of-pocket expenses. Additionally, your lender can structure your loan to roll in some fees, lowering immediate financial pressure.
Myth #6: VA Appraisals Are Unnecessarily Difficult
Many veterans believe VA appraisals are overly stringent. While it’s true VA appraisals aim to ensure the home is safe and sound, the standards are generally straightforward and designed to protect your investment. An experienced real estate agent familiar with VA loan transactions in Colorado Springs can help streamline the appraisal process.
Myth #7: VA Loans Take Longer to Close
In reality, VA loans often close just as quickly as conventional mortgages. Working with an experienced VA lender or broker in Colorado Springs ensures paperwork and inspections move efficiently, keeping you on schedule.
Myth #8: You Can’t Refinance a VA Loan
Refinancing with a VA loan isn’t just possible—it’s advantageous. Whether refinancing into a lower rate through a VA Interest Rate Reduction Refinance Loan (IRRRL) or accessing equity with a VA Cash-Out refinance, Colorado Springs homeowners have plenty of refinancing options to save money or fund major life events.
Myth #9: Active Duty Members Can’t Use VA Loans
Absolutely false! Active-duty military members, National Guard, reservists, veterans, and eligible surviving spouses can all benefit from VA loans. Your entitlement can be accessed while you’re still serving, giving you the option to invest in your future even before transitioning to civilian life.
Conclusion:
By debunking these myths, it’s clear that VA loans are one of the most powerful homeownership tools available to Colorado Springs’ military community. They’re flexible, affordable, and specifically tailored to those who’ve bravely served our nation. Don’t let misinformation prevent you from securing your dream home. Reach out to United Home Mortgage today to explore how a VA loan can work for you.
