VA Mortgage Myths Busted: What Every Veteran in San Diego Should Know

As a veteran, you've earned a host of benefits, one of the most valuable being the VA mortgage. It’s a powerful tool that can help you secure homeownership with little to no money down. But unfortunately, there are several myths about the VA mortgage that might hold you back from taking full advantage of this benefit. Let’s break through the fog and set the record straight, especially for those of you here in San Diego, where homeownership opportunities await.

Myth #1: VA Loans Are Only for First-Time Homebuyers

This myth is one of the most persistent out there. Many veterans mistakenly think that VA loans are only available for first-time homebuyers. This couldn’t be further from the truth. You can use your VA loan benefit as many times as you like, as long as you meet the eligibility requirements and have enough remaining entitlement. So, whether you're refinancing, buying a second home, or upgrading to a larger property, your VA mortgage in San Diego can help you secure that dream home, over and over again.

Myth #2: VA Loans Require Perfect Credit

Here’s the truth: your credit score doesn’t need to be flawless for a VA loan. Unlike conventional loans, the VA doesn’t set a minimum credit score requirement, making VA loans more forgiving for veterans who might have experienced financial challenges. While some lenders may have their own standards, the bottom line is that VA loans are generally more lenient when it comes to credit. So, don’t let a less-than-perfect credit score prevent you from exploring this fantastic benefit.

Myth #3: You Need a Down Payment for a VA Loan

The VA loan is famous for its zero down payment requirement—but for some reason, many veterans still think they need to come up with a hefty down payment. Not true. As long as the sales price doesn’t exceed the appraised value, you can skip the down payment entirely. This is one of the most appealing features of the VA loan program, especially in a market like San Diego, where home prices can be high. By not having to put money down, you can keep more cash in your pocket for other important expenses.

Myth #4: VA Loans Take Longer to Close

Some veterans assume that VA loans take longer to close than conventional loans. This myth probably stems from the perception that VA loans are more complicated. While the VA has its own set of guidelines, the process doesn’t have to be any slower than other loan types. In fact, with the right VA loan specialist by your side, the process can be just as quick. If you’re navigating the San Diego housing market, where competition is fierce, having an experienced local VA mortgage expert can streamline the process and help you close quickly.

Myth #5: You Can Only Use the VA Loan Once

Many veterans believe they can only use the VA loan benefit once in their lifetime, but that’s far from the truth. You can use your VA loan multiple times, as long as you have enough remaining entitlement. If you’ve repaid a previous VA loan in full or still have unused entitlement, you can apply for another loan—whether that’s for your next home purchase or to refinance your current mortgage. The entitlement doesn’t expire, so you can continue to take advantage of your benefits throughout your lifetime.

Myth #6: VA Loans Have Higher Interest Rates

There’s a misconception that VA loans come with higher interest rates due to being government-backed. In reality, VA loans typically offer lower interest rates than conventional loans because the VA guarantees part of the loan. This lowers the lender’s risk, which allows them to offer more favorable terms, including lower rates. Lower interest rates can make a huge difference in your monthly mortgage payment, freeing up more money for other expenses in your life. Especially in areas like San Diego, where the cost of living can be high, the savings from a VA loan could really add up.

Myth #7: VA Loans Have Hidden Fees

One of the best things about a VA loan is its transparency. While there’s a VA funding fee, it’s often rolled into the loan itself, so you won’t have to pay it upfront. Plus, the funding fee is much lower than Private Mortgage Insurance (PMI) required for conventional loans. And the fee is used to keep the program running, making it available for future veterans. So, don’t worry about hidden costs—VA loans are more transparent and predictable compared to other types of loans.

Final Thoughts: Don’t Let the Myths Hold You Back

Now that we’ve busted these myths, it’s clear that VA loans are a powerful benefit for veterans looking to achieve homeownership. With no down payment, competitive interest rates, and flexibility in eligibility, the VA loan program is a fantastic opportunity, especially for veterans in San Diego, where the housing market can be competitive and expensive.

If you're ready to take advantage of your VA mortgage benefits, now’s the time to act. Saxton Mortgage, a trusted mortgage provider with years of experience helping veterans, can guide you through every step of the VA loan process. Their team understands the ins and outs of the VA mortgage program and is dedicated to making the experience smooth and stress-free for veterans.

To start your VA loan application, give Saxton Mortgage a call at (855) 200-8551 or email at info@saxtonmortgage.com.