Don’t Believe This Big Myth About VA Loans

Many people believe that because VA loans offer 100% financing to their borrowers, they aren’t as qualified as other buyers. The facts don’t support this assumption, though. 

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The reason I’m joined today by John Seville, loan officer and branch manager of Benchmark Mortgage, is to dispel a common myth surrounding VA loans. From a real estate perspective, and with listing agents especially, there tends to be a stigma surrounding VA loans. If we get four or five offers for one of our listings, for example, and one of those offers has VA financing, we may be less inclined to accept that offer. According to John, that perception is very common in the marketplace, and the most common myth associated with VA loans is because it offers 100% financing to the buyer, that buyer must not be as good of a buyer as other buyers who have more standard financing options like a conventional loan. This simply isn’t the case, though. The average FICO score of a VA borrower is 741, which is about 20 points higher than the average score of a conventional borrower.

A VA buyer has—on average—more in their bank account than a conventional buyer.

“The myth that 0% down means not as good of a buyer is simply not accurate,” John says. The disconnect here is the belief that someone who has 100% financing must have no money in their bank account. In reality, a VA buyer has—on average—more in their bank account than a conventional buyer. Additionally, VA borrowers still put money down 30% of the time even though they have the option of 100% financing. If you have any more mortgage questions for John, you can call him at (616) 965-2504 or visit his website at If you have any other real estate questions or needs I can assist you with, don’t hesitate to call or email me. I’d love to help you.