Most veterans I talk to in Rockford, Loves Park, Machesney Park, and Belvidere have heard something about the VA loan that isn’t true. Usually it kept them from even asking. Here are the five I hear most, and what’s actually true.
Myth 1: “You can only use the VA loan once.”
This is the one that cost me four years. The benefit is reusable. Sell the home and pay off the loan, and your entitlement can be fully restored. You can even hold more than one VA loan at a time using remaining entitlement. I’ve used mine twice, both times here in the Rockford area.
Myth 2: “You need perfect credit.”
The VA sets no minimum credit score. Individual lenders set their own bars, and many look for around 620, but they vary. Satisfactory credit can generally be re-established about 12 months after past issues are resolved, and a bankruptcy is not an automatic disqualifier. That’s one more reason to work with a lender who handles VA loans every day.
Myth 3: “Sellers won’t accept VA offers.”
A well-written VA offer with a strong pre-approval closes reliably. What matters is the agent behind it. Part of my job is setting appraisal expectations early and writing terms that listing agents in Winnebago and Boone County trust.
Myth 4: “The funding fee makes it a bad deal.”
The funding fee is a one-time charge, and it’s real. But it can be financed into the loan or paid by the seller, and many veterans with a service-connected disability are fully exempt. Weigh it against zero down and zero PMI, and the VA loan usually wins by a wide margin. On a $220,000 home, compare it to the $44,000 a conventional buyer needs to put down to avoid PMI.
Myth 5: “It only works on old houses or small loans.”
You can buy, build, or improve, including new construction and energy-efficiency upgrades. With full entitlement, there’s no loan limit. You can buy a single-family home, a townhouse, a condo in a VA-approved project, or a multi-family property of up to four units, as long as you’ll live there.
A bonus for Illinois veterans: property tax relief
If you have a service-connected disability, Illinois offers property tax relief on top of everything the VA loan already saves you. Depending on your rating and situation, that can mean a reduction in your home’s assessed value, and in some cases a much larger exemption. These exemptions must be filed every year. Contact your local Veteran Service Officer or the Winnebago County or Boone County Supervisor of Assessments to get started.
Built-in protection for VA buyers
Every VA contract includes the VA escape clause. If the home appraises below the contract price, you can walk away with your earnest money. If the appraisal comes in low, you also have other options: request a Reconsideration of Value, renegotiate with the seller, bring cash for the difference, or walk.
Let’s check what you’ve heard against the facts
If you’ve been putting off buying a home because of something you heard, book a free 15-minute VA benefits call with me. Email nicksuchoski@kw.com, call or text (815) 957-6967, or visit www.redpointre.com.
Nick Suchoski is a U.S. Army veteran and a broker with Redpoint Real Estate (Keller Williams Realty Signature) in Loves Park, IL, serving Winnebago and Boone Counties. Redpoint Real Estate is not affiliated with or endorsed by the U.S. Department of Veterans Affairs. This post is educational, not legal or financial advice. Content adapted from the VA’s Home Loan Guaranty Buyer’s Guide.
