CAN I BUY TWO HOMESUSING VA LOANS?

Taking out a second VA loan while still holding your original loan is known as second tier eligibility or bonus entitlement.

The question of whether a borrower can take out a VA loan to buy two homes is an important one as families grow or active duty personnel move to a new assignment.

A loan officer will review the application for a second mortgage and take into account a number of considerations.

These include whether the current loan is in good standing, whether it is on a rental property that can cover its own expenses…

...whether the family is looking for a second home due to a Permanent Change in Station (PCS) or shift in family circumstances and the size of the loan requested.

CAN I BUY A SECOND HOME WITH A VA LOAN WHILE I STILL OWN MY FIRST HOME?

Each borrower, whether on active duty or a veteran, has a designated entitlement for buying a home.

If you are keeping the original home, you can use the full entitlement one more time for purchasing another property but only if you have paid off the original VA loan.

Many borrowers choose to do this, for example, if they have bought a home in one area where they’re stationed…

…have received a new PCS, and want to keep their first home as a second home, or to save it as a retirement residence.

However, the amount you’ll have to spend on a second home will depend on how much eligibility was used on the first home.

CAN I BUY A SECOND HOME WITH A VA LOAN AFTER I SELL THE FIRST HOME?

If your original VA mortgage has been paid off and you no longer own the property, you can have your entitlement restored as many times as you want.

VA eligibility can be reused for every home you purchase from the first to the last.

This is an amazing benefit considering that the loans do not require either a down payment or expensive mortgage insurance.

Providing you have good credit and sufficient income, lenders will often loan up to four times your available entitlement without a down payment.

Loans are not made through the U.S. Department of Veterans Affairs, but rather through a private lender with partial guarantee by the VA.

DO I HAVE TO LIVE IN THE HOME?

The VA specifies that VA home loans are for residential use which disqualifies purchasing investment properties from the loans.

In other words, the borrower must use the property either as a first or second home. Generally, properties may not consist of more than four family units and one business unit.

This provides somewhat of a loophole, as borrowers could reside in one of four apartments and rent the other three and the storefront.

Technically, you could then wait a year, find out if you’re eligible for an IRRRL, take one out and then buy a second home with your remaining entitlement.

You can also use a VA loan to refinance a home you originally occupied as a primary home and now rent.

WHAT IS AN IRRRL?

The VA’s Interest Rate Reduction Refinance Loan (IRRRL), also known as VA Streamline Refinance, is a refinance mortgage loan available to borrowers with existing VA mortgages.

The program allows refinancing without the need for presenting normally required documentation…

… including credit score, bank account verification, home appraisal and income/employment verification.

The loans are available through VA-approved lenders and are guaranteed by the federal government.

The loan allows you to refinance at a rate lower than your current rate and is very popular because of its ease of use.

To get an IRRRL loan, you need to:

Be current on your mortgage.Be able to certify that you have resided in

the property.Have a new loan payment lower than your current mortgage payment.

Loan must be a VA to VA loan, so you have to have borrowed your original mortgage from the VA.

HOW DO I GET MY ENTITLEMENT RESTORED?

In order to have your remaining entitlement restored, you need to contact the nearest VA office and complete VA Form 26-1880.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.

Be a proud homeowner today. For more details call 480-351-5904 or visit the site https://www.valoansforvets.com/va-loan-eligibility/

VA LOANS FOR VETS7702 E. Doubletree Ranch Road, Suite 220Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com