Working with VA home buyers in Tacoma over the years, I have this question come up quite often.
Can I use my VA Mortgage Benefits more than once? The answer is YES! Although using your VA benefits a second time, could be more expensive. VA differentiates between first time and subsequent use for VA Loans with a downpayment of less than 5%. Currently the VA funding fee for first time use is 2.15% vs 3.30 for subsequent use. Veteran's receiving a 10% or more disability payment, are exempt from paying the VA Funding Fees. Below is the 2009 VA funding Fee Schedule:
2009 VA Funding Fees Active Duty Reservist
& Veterans & National Guard
| Loans for purchase or construction with downpayments of less than 5%, refinancing, and home improvemment |
2.15 percent
|
2.40 percent
|
| Loans for purchase or construction with downpayments of at least 5%, but less than 10% |
1.50 percent
|
1.75 percent
|
| Loans for purchase or construction with downpayments of 10% or more |
1.25 percent
|
1.50 percent
|
| Loans for manufactured homes |
1 percent
|
1 percent
|
| Interest rate reduction loans |
.50 percent
|
.50 percent
|
| Assumption of a VA-guaranteed loan |
.50 percent
|
.50 percent
|
| Second or subsequent use of entitlement with no downpayment |
3.3 percent
|
3.3 percent
|
A second question that comes up is, If I still own the home, but have since refinanced my VA loan to a conventional loan, can I use my VA Benefits again? The answer is YES.
There is a quirky rule regarding restoration of eligibility when the veteran still owns a property that was financed VA, even if the property is free and clear.
VA will do a one-time restoration of eligibility to the veteran. This restoration allows the veteran to purchase another home using their full VA Home Loan benefits.
** With the recent changes in qualifying, when keeping your current home as a rental, VA does not follow the same guidelines as Fannie Mae, Freddie Mac & FHA. This alone could be a deal saver! For more details on this or an VA Home Loan Question, visit us online at http://www.VAHOMELOANSTACOMA.COM
Kevin Tinsley
All Tech Mortgage.com
Tacoma's #1 Mortgage Expert - Since 1996
FHA | VA | Conventional Purchase & Refinance Home Loans
7403 Lakewood Dr W, STE 2
Lakewood, WA 98499
(253) 472-1500 Office
(800) 339-7059 Toll Free
(866) 421-1788 Fax
kevin@alltechmortgage.com
www.alltechmortgage.com
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