Can you have two VA loans at the same time?
Now, this is a common question that we receive and you may be surprised by the answer along with the flexibility that the VA loan program provides.
In today’s video I will discuss how the VA entitlement is calculated and how additional entitlement may be available to help in this situation.
Also, if you have not yet done, please take advantage of our free second opinion service (SOS) which is great for both new pre-qualifications and those loans currently in progress. This is a great way to receive an expert second opinion, double-check where you stand, and make sure that all important financing stays on track!
VA Entitlement refers to the amount available for a Veteran to use towards a loan, and each eligible Veteran starts with a basic entitlement of $36,000 which lenders generally use for loan amounts up to $144,000.
Veterans also have additional entitlement, (“bonus entitlement”), for loan amounts higher than $144,000.
When basic and bonus entitlements are combined, an eligible Veteran may qualify up to the VA 2018 single family loan limit of $453,100 or higher depending on the county as set by the Federal Housing Finance Agency (FHFA).
With that being said, let’s review the following example:
A Veteran is retiring from Ohio and moving to Florida as a primary residence and although their home has been listed for sale, it has not yet sold. Additionally, their home in Ohio currently has a VA guaranteed loan on it.
So, can this Veteran qualify for another VA loan before their current one is paid off?
Yes, this can be possible!
As a VA approved lender, we would first calculate how much entitlement remains due to the outstanding VA loan on the home Ohio, and then determine the amount they are eligible for on the purchase in Florida.
Therefore, providing that the Veteran has sufficient remaining entitlement, they could qualify for two VA loans at the same time, which would allow them to buy the home in Florida prior to selling their home in Ohio.
Also, remember VA loans are for primary residence purposes only and not for 2nd home or investment property use.
Wow! I realize that we covered a lot today and even though not all lenders specialize in VA loans, but due to our experience and expertise, we are able to help walk our Veterans through the VA eligibility process and maximize their qualifying ability.
As a VA Approved Lender, we are here to help! Just call or email to discuss your scenario and let us show you the “Metroplex” difference!