Two VA Loans at Once? 5 VA Loan Myths Georgia Veterans Believe

The VA home loan is one of the best benefits veterans earn. Yet many veterans and service members never use it, or use it once and forget it's there, because of things they've heard that simply aren't true.

Here are 5 of the most common VA loan myths we hear in Metro Atlanta, and what the rules actually say.

Myth 1: "You can only have ONE VA loan."

This is the one that surprises veterans most: in many cases, you can have two VA loans at the same time.

If you have remaining entitlement, you can buy your next home with a VA loan and keep your first one, for example as a rental.

• Your new home must be your primary residence. The home you keep can be rented out.
• How much you can borrow with no down payment depends on your remaining entitlement and the county loan limit. On a higher-priced home, you may need a down payment on the second loan.
• Your benefit is also reusable over time. When you sell a home and pay off the VA loan, your full entitlement is restored. You can also restore it one time if you've paid off the loan but kept the home.

Want to see how that works? Read our post on using your VA benefit for a second home.

Myth 2: "You still need a down payment."

If you have your full entitlement, VA doesn't require a down payment, and there's no VA loan limit. You still need to qualify based on your income and credit, but you don't have to save 3% to 20% before you buy.

VA loans also have no monthly mortgage insurance, which can save you a meaningful amount every month compared with other low-down-payment loans.

There is a one-time VA funding fee. For a first-time VA purchase with less than 5% down, it's 2.15% of the loan amount. For later uses, it's 3.3%. It drops to 1.5% with at least 5% down, and to 1.25% with 10% or more down. It can be rolled into the loan.

Many veterans don't pay it at all. The funding fee is waived if you receive VA disability compensation, are a Purple Heart recipient on active duty, or are a surviving spouse receiving Dependency and Indemnity Compensation.

Myth 3: "Sellers don't want VA offers."

This one comes from old stories about tough VA appraisals. Today, a VA offer can be just as strong as any other.

• The VA appraisal checks the value and makes sure the home meets basic safety and livability standards. Most move-in-ready homes pass without issues.
• If the value comes in low, VA's process gives the agent a chance to send the appraiser additional sales before the appraisal is final.
• Sellers can contribute toward the buyer's closing costs, and VA allows certain seller concessions of up to 4% of the price, in addition to normal closing costs.

A well-prepared VA buyer with a strong pre-approval competes well.

Myth 4: "VA loans take forever to close."

VA loans close on timelines similar to other loan types. What slows any loan down is usually missing paperwork, appraisal scheduling or a late request for documents.

The best way to stay on schedule is to get your Certificate of Eligibility and full pre-approval done before you start shopping, so your file is ready the day you go under contract.

Myth 5: "You need perfect credit."

VA doesn't set a minimum credit score. Lenders set their own, and they vary. VA also looks at your whole picture, including how much income you have left over each month after your bills.

If your credit isn't where you want it yet, that's a starting point, not a dead end. Our guide to improving your credit before you apply can help.

Who Can Use a VA Loan?

• Veterans who meet the service requirements
• Active-duty service members
• Many National Guard and Reserve members
• Some surviving spouses

Your Certificate of Eligibility confirms it. We can help you request it.

Work With Someone Who Knows VA Loans

Christopher Stewart has helped veterans and military families use their VA benefit for more than 20 years. We help buyers across Fulton, Cobb, DeKalb, Gwinnett, Clayton, Douglas, Cherokee, Fayette, Forsyth, Henry, and Rockdale counties, including Marietta, Smyrna, Kennesaw, Acworth, Woodstock, Roswell, and Sandy Springs.

The Bottom Line

You earned this benefit. Don't let a myth keep you from using it, or from using it again.

Ready to stop chatting with AI and start talking to a mortgage professional who can close your loan?

Get your Real Numbers: CALL (678) 568-4568 / TEXT (678) 606-3359 or reach out via our ONLINE Contact Us form.

This article is for general information only. Stone Oak Mortgage is not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. VA rules, funding fees and eligibility are subject to change. All loans are subject to credit approval, income verification, property appraisal and underwriting guidelines.