Debunking myths around FHA and VA Loans

It’s time to talk about government loans. We want you to know enough to help instill confidence in your clients when they ask these questions. And remember, our Key Mortgage loan officers are always here to help!

FHA and VA loans take longer to process and close.  FALSE

A loan is a loan – when the buyer is educated on the process and is properly qualified upfront, it should not take any longer than a conventional loan. 

FHA loans are only for buyers with weak or nominal credit.  FALSE

Buyers often choose an FHA loan for reasons other than credit score such as ease of qualifying, lower downpayment, and less closing costs. A lower downpayment or monthly cost may be a buyer strategy. 

Appraisals are difficult with FHA and VA Loans.  IT DEPENDS

Outside a few nuances, the appraisal process is very similar to conventional loans for a standard home. The main difference is that the FHA and VA appraisal confirms the home meets a minimum standard of living requirement for health and safety hazards. These are typically not loans for fixer-uppers. 

Our Key Mortgage loan officers are available to consult with your client to get them preapproved and in the right loan for them. We pride ourselves in ensuring your client has what they need to close on time – regardless of loan product.