What is NOT true about a VA loan?

A VA loan is specifically designed to assist veterans, active-duty service members, and certain members of the National Guard and Reserves in purchasing homes. One of the defining characteristics of VA loans is that they do not typically require a down payment, making them an attractive option for eligible borrowers. Instead of a traditional down payment, the VA backs the loan, allowing military personnel and veterans to buy homes without the upfront costs commonly associated with conventional financing.

The certificate of eligibility is indeed an essential component of the VA loan process as it confirms the borrower's eligibility and entitlement for VA loan benefits, and it must be obtained by the borrower prior to closing the loan. Furthermore, VA loans allow for the restoration of benefits, meaning that veterans who have used their VA loan entitlement can have it restored after paying off the loan or selling the property, making it accessible for future use. Additionally, VA loans require that the property meets a reasonable value appraisal as conducted by an approved appraiser, ensuring that the loan amount does not exceed the property's market value.

In summary, the assertion that a VA loan requires a down payment is not true, as one of the key advantages of VA financing is the absence of this requirement, which makes homeownership more accessible for veterans and service members