Can I Have Two VA Loans?

The quick answer to the question regarding having two VA Loans is “yes”, but there are certain conditions that apply and a down payment may be required. If you are an active duty military member and are required to PCS to a new location, it is possible to purchase a new home using your VA Certificate and rent out your previous address. However, there are several things to consider.

Entitlement

VA entitlement is the dollar amount the VA is willing to repay (or guarantee) the Lender if you default, or fail to repay your mortgage. The amount of remaining Entitlement will determine if a down payment is required on your second VA Loan. Even if you don’t have enough Entitlement left to obtain 100% financing on the second home, it is still possible to have two VA Loans.

Minimum Loan Amount

When obtaining your second VA Loan, your loan amount must be above $144,000 to obtain 100% financing. This sounds contrary to what you would think, but if you are purchasing another property below the purchase price of $144,001, then a down payment will be required. The VA Funding Fee can count towards this total but if you are planning on having a down payment, the loan amount needs to be greater than $144,000.

Can I Purchase a Vacation Home with a VA Loan?

No, the VA only allows loans on primary residences.

Qualifying With Two VA Loans

If you are eligible for two VA Loans, keep in mind you still have to qualify with both mortgage payments. Rental income on the previous property can be used under certain circumstances but typically the rental income can only be used to offset the mortgage payment. Additionally, several months of mortgage payments are required in your available assets (Reserves) and the amount can vary depending on the type of property. Talk to your local Loan Officer about the specific guidelines regarding using rental income and reserve requirements for VA Loans.
If you are looking for a VA Loan in Columbia, Lexington, Chapin, Blythewood, Elgin, Sumter or anywhere in South Carolina, we would love to answer any additional questions you may have. Additionally, we charge NO FEES on all VA Loans which will save you over $1000!! Apply Now or Call us today at 803 261 9267!

 

QUICK QUOTE
Trusted. Experienced. Secure.