Posted on December 1, 2023

Did you know you can have two VA home loans at the same time?

You sure can. Did you know there is no funding fee if you have a 10% or more service-connected disability? How about that?

When it comes to homeownership, veterans and active duty service members often turn to the benefits provided by the U.S. Department of Veterans Affairs (VA) for assistance. One of the notable benefits is the VA home loan program, which offers favorable terms and conditions for qualifying individuals. Among the lesser-known aspects of this program is the possibility of having two VA home loans simultaneously. Let's delve into how this is possible and what it means for those who have served in the military.

Firstly, it's important to understand the basics of VA home loans. These loans are provided by private lenders but are partially backed by the VA, which means lenders are able to offer more favorable terms to borrowers, including competitive interest rates and no requirement for a down payment in most cases. The VA home loan program aims to make homeownership more accessible to veterans, active duty service members, and eligible surviving spouses.

ENTITLEMENT 

Now, you might wonder how someone can have two VA home loans at the same time. The key lies in understanding the VA's entitlement system. Each eligible individual is entitled to a basic VA home loan entitlement, which currently allows them to purchase a home with a loan amount of up to $144,000 without a down payment. However, this basic entitlement can be supplemented with additional entitlement, which varies depending on the county's loan limits where the property is located. As an example, it is very possible for a veteran to have a home valued north of $500,000. The concept of having two VA home loans simultaneously revolves around utilizing remaining entitlement. Let's break it down:

Primary Residence Loan: Most veterans and active duty service members use their VA loan benefits to purchase their primary residence. Once they have paid off the loan or sold the property, their entitlement is restored, allowing them to use it again for another primary residence purchase.

Second VA Loans for Another Primary Residence: If a veteran or active duty service member still has remaining entitlement after purchasing their primary residence, they can use it to purchase another primary residence, provided they meet the lender's requirements for income, credit, and other factors. This essentially allows them to have two VA home loans at the same time. It's important to note that while having two VA home loans simultaneously is possible, there are certain limitations and considerations to keep in mind:

LOAN LIMITS:

VA home loans are basically unlimited and you can always ask the seller to contribute to your closing costs and pre-paid items. These are seller contributions and vary house to house and on purchase price. Borrowers should be mindful of these limits when considering a second VA loan.

Income and Credit Requirements: Lenders will still assess the borrower's income, credit history, and other factors to determine their eligibility for a second VA loan. Meeting the lender's requirements is crucial for approval.

Occupancy Requirements: Both properties financed with VA loans must serve as the borrower's primary residence. Renting out one of the properties may not be permitted unless certain conditions are met.

In conclusion, the ability to have two VA home loans at the same time offers veterans and active duty service members flexibility in their housing options. By understanding the VA's entitlement system and meeting lender requirements, eligible individuals can leverage their benefits to achieve homeownership goals effectively. As with any financial decision, it's essential to weigh the pros and cons and consult with VA-approved lenders to make informed choices regarding VA home loans.

Based on entitlement and qualifying, I have many veterans buying homes above $500,000 with 100% financing. For all VA home loans, call me today and ask me how this works. 727-252-3222

Let’s Get You Pre-Qualified and Get You Into Your New Home!

We make a large part of our living helping veterans like yourself so call us today and talk to the best. If you are PCS’ing to your next duty station, retired, or have just separated, we can answer all your questions. Call us today for more information. It doesn’t cost a penny to talk to us at (727) 252-3222. CLICK HERE to get your loan application started.