VA Loans Are NOT FHA Loans – A Must-Know Truth for Veterans Seeking Homeownership
Honoring Veterans With the Right Home Loan Knowledge
If you’re a veteran or a family member of one, understanding your VA loan benefits is not just helpful—it’s crucial. Too often, veterans are steered away from VA loans due to confusion with FHA guidelines. In this post, I’m sharing a powerful, real-life example from my decades of working directly with the VA, to make one thing clear:
👉 VA loans are NOT FHA loans—and they’re not supposed to be.
A Personal Story From the Front Lines of VA Lending
Back in the late '80s and early '90s, I had the unique opportunity to work directly with the VA office in San Francisco. I got to know the team, many of whom had worked with VA loans for years, and I learned VA lending from the source—not through second-hand interpretations from underwriters or overlays.
One thing was made crystal clear by both the VA and my mentor (a retired Vietnam medic who was passionate about helping fellow veterans):
💬 “Veterans are to be taken care of. VA loans exist to make housing accessible and affordable for those who served.”
VA Loans Aren’t Meant to Be Like Every Other Loan
Many underwriters try to apply FHA guidelines to VA loans simply because the VA guidelines aren’t always black and white. But that’s by design.
🧾 The VA intentionally leaves room for lender discretion—as long as the decision is well-documented and financially sound.
VA Allows Flexibility Other Loans Do Not
Let’s talk about a real scenario:
A veteran wanted to purchase a home, but the seller wouldn’t cover closing costs. The veteran planned to use a $5,000 unsecured line of credit to make it happen. For any other type of loan—FHA, Conventional—you’d hit a brick wall. That source of funds would be flat-out unacceptable and we’d need to find a different way.
But VA? ✅ Approved.
Here’s why:
The veteran had stable income.
He had minimal existing debt.
He only took the unsecured loan to buy the home.
Because I was familiar with the VA guidelines and their spirit, I proceeded to approve the loan. I explained my reasoning in the approval notes, and the VA backed it.
The Myth of “VA Doesn’t Say So, So It’s FHA”
Many lenders default to FHA rules when VA guidelines are unclear. But the VA’s position is simple:
If it makes financial sense, lenders can approve it.
Don’t let someone tell you “VA doesn’t allow that” unless they’re a VA expert—and can show you proof.
What You Should Do as a Veteran Buyer
If you’re working with a lender who tells you something can’t be done:
❌ Don’t accept a default answer based on FHA rules.
✅ Ask if they’re a true VA loan expert.
📞 Get a second opinion from someone who has deep experience in VA lending.
Final Word—Veterans Deserve Better Than “Standard”
Veterans have earned the right to affordable housing through their service. VA loans exist to make that happen. As someone who’s worked side-by-side with the VA and been mentored by a veteran who lived and breathed VA loans, I’ll always go the extra mile to make sure a veteran’s path to homeownership is clear, supported, and fully explored.
Want to Learn More About Your VA Loan Options?
Let’s talk. Whether you’re buying your first home or refinancing, I’ll help you navigate the VA loan process the right way—with your best interest at heart.
📞 Contact me at 360-505-8666 Text/Message :)
