Top 3 VA Loan Myths Still Hurting Veterans in 2025
Top 3 VA Loan Myths Still Hurting Veterans in 2025
Veterans have earned access to the VA loan benefit, but far too many still face misinformation, confusion, and outdated advice that can cost them their homeownership dreams. Even in 2025, myths surrounding VA loans persist—sometimes spread by well-meaning but misinformed loan officers, real estate agents, or lenders who simply don’t understand the program.
Let’s set the record straight. Here are three VA loan myths that need to die in 2025, along with real stories and solutions every veteran (and professional) should know.
Myth #1: "Your Lender Said It's an FHA Rule? That's a Red Flag."
One of the most harmful misunderstandings is when a lender or loan officer starts quoting FHA guidelines for a VA loan. These are two very different government-backed programs with different eligibility, flexibility, and rules.
Yes, both FHA and VA loans aim to help people who may not qualify for conventional financing. But that’s where the similarities end.
If a lender starts saying things like, "you can’t do that with a VA loan because of FHA rules," stop right there. VA has its own set of flexible guidelines. Hearing "FHA" during a VA transaction is a huge red flag, and it’s time to get a second opinion.
Pro Tip: If someone doesn’t specialize in VA loans, they might default to FHA logic—even if it’s wrong for your situation. Don’t let bad info block your benefits.
Myth #2: "You Need 6 Months on the Job After the Military"
Another common misconception? That you have to be at your civilian job for six months before your income can count.
This is not always true.
Yes, stability matters. But VA guidelines allow underwriters to consider the veteran’s full story – including military training, DD-214, job type, and hiring rationale. Here's a real example:
A veteran applied for a VA loan after just a few months on the job working helicopter repair. A previous lender denied him, citing lack of time on the job. But after reviewing his DD-214, it was clear he’d done nearly identical work in the military. The new lender asked, "Why did the company hire you?" His answer? "Because I already have the training."
Result: Loan approved. No six-month wait required.
The VA loan process is about logic and alignment, not arbitrary timelines. If your civilian job lines up with your military experience, your income can often be counted right away.
Myth #3: "You Can't Borrow Money to Cover Closing Costs"
This one is tricky because it has a sliver of truth—but it's often misunderstood.
Here's what IS true: You can use unsecured borrowed funds for a down payment or closing costs on a VA loan. That part aligns with general loan standards for VA only.
But here's what's ALSO true: If you secure the loan with collateral, like a paid-off car, it can be counted for any loan type including VA.
One veteran took out a $7,000 personal unsecured loan with low payments to help cover a collection and some closing costs. The lender said no, can’t be unsecured. But a VA expert underwriter saw no history of financial mismanagement, saw the payment was manageable, and approved the loan. VA backed the decision.
VA underwriting allows discretion and common sense. It’s not a rigid checklist. If the borrower is responsible and the loan improves their financial position, there’s room for smart judgment.
Why These Myths Persist
The VA loan program is robust, but not every lender is well-versed in its nuances. Some:
Default to FHA standards
Apply outdated or internal overlays
Lack experience interpreting DD-214s or COEs
Are overly cautious instead of VA-informed
Veterans deserve better. That’s why it’s essential to work with someone who lives and breathes VA loans, not just dabbles in them.
“In 1986, I was trained by a Vietnam medic who dedicated his career to helping veterans. He taught me to read guidelines, call VA directly, and always do right by the borrower. That foundation shaped my entire mortgage career.”
— Sloane Jillian Brogan
Final Advice to Veterans in 2025
Buying a home is stressful enough. VA loans should make it easier – not harder. If you’re:
Hearing "no" but something doesn’t feel right
Being told you need longer employment
Being denied due to money you legally accessed
Get a second opinion. Heck, get a third. It could save your homeownership journey.
There are lenders and underwriters out there who understand veterans. Who understand the spirit of the VA loan program. And who will go the extra mile to say yes when the guidelines allow it.
Because that’s what the VA loan was built for.
Frequently Asked Questions (FAQ)
1. Can I get a VA loan with less than 6 months on my civilian job?
Yes, especially if your civilian job aligns with your military experience. Lenders can use your DD-214 and the nature of your job to justify using your income right away.
2. Can I use borrowed money for VA closing costs?
You can if it’s secured (like a car loan). Unsecured loans generally aren’t allowed. But VA underwriting allows for lender discretion.
3. What’s the difference between a VA and FHA loan?
Both are government-backed, but VA loans are for veterans, have no down payment, no mortgage insurance, and more flexible guidelines. FHA loans are for general low-to-moderate income borrowers.
4. What is a DD-214 and why is it important?
Your DD-214 is your military discharge document. It lists your service, roles, and training—often more useful than a resume when explaining employment history.
5. What should I do if I think my lender is wrong?
Get a second opinion. Especially if they’re quoting FHA rules during a VA loan. VA guidelines are different and often more flexible.
Bottom Line: If you’re a veteran looking to buy in 2025, don’t let misinformation stand in your way. The VA loan is a powerful tool—but only when used correctly by professionals who respect the benefit you earned.
Need help or a second opinion? Reach out. You're not alone.
