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Can you have 2 VA loans at the same time? Yes!
Last Post Dec 29, 2013 09:50 PM by Gary s.. 30 Replies.
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Susan Wallace-KinseyUser is Offline Senior Member Senior Member Posts:124
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Jan 24, 2011 06:59 PM

     

    Can I Have 2 VA Loans At One Time? YES!

    In some cases you can have two. Veterans and active duty military with a VA Home Loan might be surprised to know that they can qualify to purchase a home with a second VA Loan based on what's called their Second-Tier Entitlement.

    While there's plenty to know about the VA Loan for those just looking to use it the first time, there's a lot of information about using two VA Loans simultaneously.

    A lot of vets think they can only use their VA Loan once and they're trying to save their VA Loan benefit when they don't have to. The VA does allow for having two VA Loans at the same time, as long as the max entitlement is not exceeded. Also, the borrower must qualify for the second loan and in some cases, may need two years of rental history on the first home to offset the mortgage payment when trying to get qualified income-wise to purchase a second home.

    First let’s explain the difference between entitlement and maximum loan amount.

    Each borrower using a VA Loan has a $36,000 entitlement that the VA guarantees to the lender in the unfortunate event that a borrower would default on the loan. The VA's formula dictates whether or not all that entitlement is used with the initial loan, and thus, additional entitlement can be available. And even if the entitlement is $0 after the purchase of the first house, then the Veteran or active duty member can still use their second-tier entitlement, but there will be a standard minimum and maximum loan limits on what the borrower can use to buy that second house.

    Where does the $36,000 come from? This is 25% of 144,000, the "old" maximum loan amount for VA loans.

    The VA now has County maximum loan limits as high as 768,750 in the DC Metro Area. With that loan amount, your 25% guarantee is 192,187.50 in entitlement.

    "Second-Tier entitlement is nice because for those people using it, it means they don't have to sell their (first) property right off the bat when obtaining the second VA Loan. However, they still have to qualify for the VA Loan. While Second Tier Entitlement is not widely used because of its complexity and the fact that plenty of lenders are not well versed in calculating it, does not mean that interested borrowers should wave the white flag and look elsewhere for a different home loan.

    There are a lot of people that don't know about it or are misinformed, lenders included. But there are those out there, that know about second-tier entitlement and how to calculate it, and are comfortable working with it.

    If you're in a VA Loan already and thinking about using your VA Loan again, call a VA Loan Specialists to learn more about your second-tier entitlement.

    An Example of calculating second-tier entitlement:

    Veteran has used $104,250 of entitlement on a prior loan, which may not be restored because the loan is still active and is now a rental due to orders to transfer. The Veteran is now purchasing a home for $350,000 where the county loan limit is $768,750.

    $768,750 (County Loan Limit) X 25% (your VA guaranty) = $192,187.50 Maximum Guaranty

    $192,187.50 - $104,250 (entitlement already used for active VA loan) = $87,937.50 Entitlement Available

    $87,937.50 X 4 = $351,750 Maximum Loan Amount with 25% Guaranty – Since the proposed purchased price is less than the max loan amount, no down payment would be required.

    If the Veteran would like to purchase a home for 400,000 using the same numbers above, they would be required to bring $12,062.50 as a down payment to meet the 25% guaranty.

    400,000 x 25% = 100,000 needed entitlement/guaranty – 87,937.50 available = 12,062.50 difference needed by Veteran to meet lender requirement.

    For a list of county loan limits, please email me or go to http://benefits.va.gov/homeloans/do...limits.pdf

    If you would like to discuss your options for second tier availability to you, please do not hesitate to contact me!

    Thank you,

    Susan Wallace

    Susan Wallace-Kinsey
    Mortgage Loan Specialist
    Susan@Susan-W.com
    571-283-1337
    NMLS-218057/VA-1679
    Tags: VA LOAN, 2 VA Loans, 2 loans, loans, VA, eligibility
    lovingrose189User is Offline New Member New Member Posts:1
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    Jan 28, 2011 04:32 PM
    Thanks for the post. I had not known that it was possible to have two Veterans Administration Loans out at the same time. Like you mentioned many people just go to another resource for a new loan mortgage. However, I can't imagine that the same amount would be available for the second tier loan. None the less, VA loans are a very nice investment mechanism for military personal.
    Dede2002 Posts:831
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    Mar 02, 2011 04:01 PM
    Hi I'm excited to hear about this option. We owe $305,000 on our house with a VA on it but would like to purchase in the Fairfax County VA area this year. If I am calculating it properly wouldnt I be able to buy a house of around $500,000 using 2nd tier?

    shuckshanker@yahoo.com
    James J Hill Posts:831
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    Aug 28, 2011 12:49 PM

    Interested in detailed information about second tier entitlement for VA home loans

    Joe and Deb - VR SAMUser is Offline VR SAM Senior Member Senior Member Posts:328
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    Aug 28, 2011 01:06 PM

    James,   suggest you click Susan's "Military Mortgage Specialist" on left column.  You can email or call her from that site and she will answer any / all questions.  Joe

    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    Bob Posts:831
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    Sep 06, 2011 04:20 PM
    I currently have a VA loan in Henderson NV for approximately 426,000 and am wondering if I have enough of a 2nd tier entitlement left to purchase a second home for approximately 160,000?
    Tdishion Posts:831
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    Sep 03, 2012 08:04 PM
    We have a $256,000 Va loan in California. We'd like to buy another home using a 2d VA loan which we plan to buy in Las Vegas to retire in because we owned one there before and would like to move back. My daughter resides there because she went to school there and never wanted to leave. Is it that the 2 houses together can't go over a certain amount?
    robert Posts:831
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    Sep 20, 2012 05:02 PM

    want to know any banks or mortage company that will do a v.a loan on a second home in florida

    Susan Wallace Posts:831
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    Sep 21, 2012 11:08 AM

    Thanks for the response, I am a loan officer and we are licensed in Florida!  I am happy that my article helped you, I have helped so many people with this now and it is an awesome program.

    Please send me your contact information and I will be happy to assist you with your loan as well.

     

    Susan Wallace
    Branch Manager
    21 Wirt St SW
    Leesburg VA 20175
    571.283.1337 Direct
    571.442.8623 Office
    877.657.8889 Toll Free
    877.607.2469 Fax
    Company NMLS ID: 1652
    Individual NMLS ID: 218057
    hardy17 Posts:831
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    Oct 01, 2012 01:56 PM
    We used our VA loan for our second mortgage, but not our first. Can we use the 2nd tier VA loan to re-finance our first?

    Thanks,
    Becky
    jmccleary02 Posts:831
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    Oct 08, 2012 02:01 PM
    I do have a va loan on a home right now, but would like to know about va 2nd tier entitlement. email jmccleary02@gmail.com 360 713 7314
    DAV Veteren Posts:831
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    Dec 26, 2012 07:28 PM
    I bought my first home of a VA loan without any down payment. Since, I was injured in combat. Upon return from duty, I lost my job, because I couldnt be a correction officer with a head injury. The second tier option would help me move closer to my family for love and support, I moved 100 miles away for a career, thats not longer an option. Can I still qualify without putting money done, I have used most of it for my five childrens benefit. Any answers from folks who know, let me know. My credit score is 650, so fair,... Todd
    DAV Veteren Posts:831
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    Dec 26, 2012 07:28 PM
    I bought my first home of a VA loan without any down payment. Since, I was injured in combat. Upon return from duty, I lost my job, because I couldnt be a correction officer with a head injury. The second tier option would help me move closer to my family for love and support, I moved 100 miles away for a career, thats not longer an option. Can I still qualify without putting money done, I have used most of it for my five childrens benefit. Any answers from folks who know, let me know. My credit score is 650, so fair,... Todd
    DAV Veteren Posts:831
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    Dec 26, 2012 07:28 PM
    I bought my first home of a VA loan without any down payment. Since, I was injured in combat. Upon return from duty, I lost my job, because I couldnt be a correction officer with a head injury. The second tier option would help me move closer to my family for love and support, I moved 100 miles away for a career, thats not longer an option. Can I still qualify without putting money done, I have used most of it for my five childrens benefit. Any answers from folks who know, let me know. My credit score is 650, so fair,... Todd
    DAV Veteran Posts:831
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    Dec 26, 2012 07:29 PM
    I bought my first home of a VA loan without any down payment. Since, I was injured in combat. Upon return from duty, I lost my job, because I couldnt be a correction officer with a head injury. The second tier option would help me move closer to my family for love and support, I moved 100 miles away for a career, thats not longer an option. Can I still qualify without putting money done, I have used most of it for my five childrens benefit. Any answers from folks who know, let me know. My credit score is 650, so fair,... Todd
    Susan Wallace Posts:831
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    Dec 27, 2012 08:19 AM

    Dave, it is possible that you could qualify for the 2nd tier entitlement.  The best thing is to speak to you so we can review your situation in detail and determine your best course of action. I can do a pre approval based on our conversation and we can move forward from there on the full approval. Please call me at 571-283-1337.

    Susan Wallace, NMLS 218057

    tdself Posts:831
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    Jan 11, 2013 01:26 PM

    Ok...here is my situation. I currently have a loan in Oklahoma for $61,000 where I am reading the limit is $417,000. We are wanting to purchase another home for $165,000, which would only take the total loan amount owned to $226,000. Am I reading this right that I should be allowed to do this? If so, how do I go about it? Every lender I have talked to says I have to refinance the first one.

    Chera Posts:831
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    Jan 31, 2013 05:05 PM

     I spoke to Susan today and she is FANTASTIC! She brought to light what some people at the VA were unaware of. So glad I found her and this article, will be sharing with many more vets on the 2nd VA loan option!

    Child care Posts:831
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    Feb 06, 2013 01:44 PM
    I am in the process of applying for a 2nd tier VA loan on a second house. I intend on renting the first house out. I have obtained preapproval with the condition that I have one of my two car loans paid off prior to closing. I have the money in an account to do this and am awaiting the underwriters response back after filing all of my documents with the lender. I had one question as my W2s were requested, to include 2012's tas returns once filed. Last year I began college and used VA benefits to pay for my son to go to childcare. I am actually in a position to claim this as a tax credit for my return. As of 2013, child care is no longer one of my expenses. If I claim the childcare expense on my W2, will it count against my DTI. I know the VA looks at this in your DTI, but it was last year’s OPTIONAL bill. Should I claim this credit or leave it off? I am not trying to hide anything, but if claiming an optional credit will hurt my loan, I would rather not do it. Help!

    Susan Wallace Posts:831
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    Feb 06, 2013 10:43 PM
    In my opinion all you should have to do is fill out the child care form stating you no longer have a child care expense and couple that with a letter explaining why you did it in 2012 and why it's no longer applicable. Hope that helps.
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