In my last post we examined foreclosure issues as they relate to VA loan eligibility. You can't get VA loan eligibility restored if you owe the government money because it paid off a claim on your VA mortgage--you must pay the government debt first. But what about owners who have purchased a home at some point and now want to buy again using any remaining entitlement?
It's a question I am asked frequently; "I don't have full eligibility for a VA loan, but I do have some entitlement left over. Can I use it for a new mortgage?"
According to the VA, "If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required."
When a borrower doesn't have enough remaining eligibility for a home loan even with a down payment, they can still use their remaining VA loan entitlement if they want to purchase a home with a co-borrower
using his or her VA loan entitlement.
In cases where the co-borrower doesn't have VA loan benefits, the non-military borrower can't shoulder more of the financial burden for the loan than the veteran using his or her VA eligibility--something to keep in mind when applying with a co-borrower.
Military members who want to apply for VA loans together can use a combination of VA loan entitlements on the new mortgage. This is often called a "joint loan" and has more flexibility since the co-borrowers
all have VA loan benefits to use for the purchase.
www.sanantoniotexasnewhomesforsale.com - San Antonio, TX
Berkshire Hathaway HomeServices Hill Country
Bruce....Some very good information ....You know VA Loans inside and out Thank You
Feb 25, 2011 02:40 AM
Comments(1)