Winning Strategies in Real Estate: 5 Things You May Not Know About VA Loans

5 Things You May Not Know About VA Loans

VA Loans

5 Things You May Not Know About VA Loans

VA Loans are a very misunderstood mortgage program in America.  Industry professionals and consumers often receive incorrect information when they inquire about them.  Here are some of the most common myths about VA loans.


1. The VA loan benefit has a 'one time' use.

Fact: Veterans and active duty military can use the VA loan many times. There is a limit to the borrower's entitlement.  The entitlement is the amount of the loan that the VA will guarantee.  If the borrower exceeds their entitlement, they may have to make a down payment.  There is no limit on how many times a Veteran or Active Duty Service Member can get a VA loan.

2. VA home loan benefits expire if they are not used.

Fact: For eligible participants, VA mortgage benefits never expire.  This myth stems from confusion over the veteran benefit for education. That benefit typically expires 10 years after discharge.

3. A borrower can only have one VA loan at a time.

Fact: You can have two, or more, VA loans out at the same time as long as you have not exceeded your maximum entitlement and eligibility.  In order to have more than one VA loan, the borrower must be able to afford both payments and sufficient entitlement is required. If the borrower exceeds their entitlement, they may be required to make a down payment.

4. If you have a VA loan, you cannot lease the home.

Fact: By law, homeowners with VA loans may rent out their home. If the home is located in a non-rental subdivision, the VA will not guarantee the loan. If the home is located in a subdivision where the other owners can deny or approve a tenant, the VA will not approve the financing. When an individual applies for a VA loan, they certify that they intend on making the home their primary residence.

5. If a borrower has a short sale or foreclosure on a VA loan, they cannot have another VA loan.

Fact: If a borrower has a claim on their entitlement, they will still be able to get another VA loan, but the maximum amount they would otherwise qualify for may be less.


In recent years, the VA loan made up approximately 13% of all home purchase financing.  This program remains underused largely because of misinformation.  By separating facts from myths, more of America's military would be able to realize their own American Dream.

If you are a Veteran or Active Duty Service Member and are ready to pursue the American Dream of homeownership just give me a call and I can help guide your way.  I work with exceptional lenders who specialize in VA financing.


Tony Morganti, CRS, ABR


Comment balloon 1 commentTony Morganti • February 22 2014 08:20PM


Thanks for sharing such great information on the VA loan as I so enjoy working with the military

Posted by Charles Stallions, 800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl. (Charles Stallions Real Estate Services ) over 5 years ago