Curious about VA loans? Let Carlos Rey from Whissel Realty Group clear up the confusion! He debunks 3 major myths: the one-time use myth, eligibility for veterans' children, and buying investment properties. Discover how to make the most of your VA loan benefits. For more details, reach out to Carlos at Whissel Realty!

Meet Carlos from Whissel Realty Group

Carlos, an experienced real estate agent at Whissel Realty Group, is dedicated to helping veterans navigate the complexities of VA loans. He frequently encounters misinformation about these loans and aims to set the record straight. In this blog post, we'll explore three prevalent myths about VA loans and provide factual information to debunk them.

Myth 1: You Can Only Use a VA Loan Once

One of the most widespread myths about VA loans is that they can only be used once. This is entirely false. The VA loan benefit can be used multiple times throughout a veteran's life, as long as their entitlement permits it.

Understanding VA Loan Entitlement

VA loan entitlement is the amount the VA will guarantee for a loan. There are two levels of entitlement: basic and bonus. The basic entitlement is $36,000, and the bonus entitlement is based on the conforming loan limits set by the Federal Housing Finance Agency (FHFA). If a veteran has previously used a portion of their entitlement, they may still have remaining entitlement available for future use.

Reusing Your VA Loan Benefit

Veterans can reuse their VA loan benefit in several ways:

  • Paying Off the Original Loan: If a veteran sells their home and pays off the VA loan, they can restore their full entitlement and use it for another VA loan.

  • VA Loan Assumption: If another veteran assumes the original VA loan, the seller can regain their entitlement.

  • One-Time Restoration: Veterans can restore their entitlement one time if they have paid off the VA loan but still own the property. This option allows them to use the benefit again while retaining the original home.

Myth 2: Children of Veterans Can Use the VA Loan

Another common misconception is that the children of veterans can use their parent's VA loan benefit. Unfortunately, this is not true. The VA loan benefit is exclusively available to eligible veterans, active-duty service members, and, in some cases, surviving spouses.

Eligibility for VA Loans

To be eligible for a VA loan, an individual must meet one of the following criteria:

  • Veterans: Those who have served in the U.S. Armed Forces and received an honorable discharge.

  • Active-Duty Service Members: Those currently serving in the military.

  • National Guard and Reserve Members: Those who have completed six years of service or have been activated for federal service.

  • Surviving Spouses: The un-remarried spouse of a veteran who died in service or as a result of a service-connected disability.

Children of veterans must enlist in the military and become eligible in their own right to use the VA loan benefit.

Myth 3: You Can't Buy an Investment Property with a VA Loan

Many people believe that VA loans cannot be used to purchase investment properties. While it's true that VA loans are intended for primary residences, there is a way to use this benefit to generate income.

Buying Multi-Unit Properties

Veterans can use VA loans to purchase multi-unit properties, such as duplexes, triplexes, or fourplexes, as long as they occupy one of the units as their primary residence. This strategy allows veterans to live in one unit while renting out the others, generating rental income to help pay off the mortgage.

Benefits of Multi-Unit Properties

  • Income Generation: Renting out additional units can provide a steady stream of income, helping to offset mortgage payments and other expenses.

  • Investment Opportunity: Multi-unit properties can appreciate over time, offering a potential increase in equity.

  • Owner-Occupied Requirements: The VA requires veterans to occupy the property as their primary residence for at least one year. After this period, veterans may have more flexibility in how they use the property.

Conclusion

Carlos from Whissel Realty Group is committed to debunking common myths about VA loans and providing veterans with accurate information. Understanding the true capabilities of VA loans can empower veterans to make informed decisions and take full advantage of their benefits.

Key Takeaways

  1. VA Loan Reuse: Veterans can use their VA loan benefit multiple times, as long as their entitlement allows it.

  2. Eligibility: Only veterans, active-duty service members, and certain surviving spouses are eligible for VA loans. Children of veterans must qualify on their own.

  3. Investment Properties: VA loans can be used to purchase multi-unit properties, allowing veterans to generate rental income while living in one of the units.

If you have any questions about VA loans or need assistance navigating the home buying process, Carlos and the team at Whissel Realty Group are here to help. Contact Carlos for expert advice and support on your journey to homeownership.

Call today to speak with our team on how to take advantage of these awesome perks