Page 6 - The Panozzo Team - VA Home Loan Guide

WHY THE VA LOAN IS A GREAT PRODUCT! (CONT.)

MYTH #5: ACTIVE-DUTY MILITARY DOESN’T QUALIFY.

- Active-Duty service members who have served a minimum of 90 days on active
duty qualify for a VA home loan. It’s not limited to Veterans and prior service.

MYTH #6: NATIONAL GUARD/RESERVISTS DON’T HAVE VA HOME LOAN BENEFITS.

- There are different eligibility requirements for the National Guard and Reserve
members, but these members may still have VA entitlement to use the VA home
loan benefit.

MYTH #7: VA HOME LOANS ARE ONLY FOR PURCHASING YOUR FIRST HOME.

- Whether you are using your VA benefits on your first home or your twenty-first,
qualifyinV veterans can use their VA home loan benefit to purchase a home, repair,
or improve an existing home (refinance).

MYTH #8: VETERANS CAN ONLY HAVE ONE VA HOME LOAN AT A TIME.

- The VA will allow for the financing of more than one property so long as the Veteran
has sufficient Eligibility. The “partial eligibility” formula is complex, but your
lender can help you determine whether you would qualify.

MYTH #9: VA DOESN’T DO LARGE OR “JUMBO” LOANS.

- The VA has removed all loan limit restrictions so as long as a borrower can qualify
for the payment the veteran can purchase a home over a million dollars with no

down payment requirement and no mortgage insurance. To date the largest VA
home loan has been over $4 million dollars.

MYTH #10: VA LOANS ARE MORE EXPENSIVE.

- VA loans, like other government loans often have a funding fee added to their
loan amounts. This funding fee ranges from 0% to 2.15% of the loan and/or
purchase price. Certain VA related disabilities make a veteran eligible to have the
funding fee waived entirely! USDA and FHA loans have monthly mortgage insurance
on top of the upfront fees added to the loan, whereas VA loans do not. Conventional
loans over 80% loan to value can have monthly mortgage insurance, upfront
mortgage insurance, or a combination of both.

6