If you are a veteran you can actually have 2 VA loans. You may want two VA loans if you are moving and not selling your current home. Or possibly would like to buy a new home without selling their current home. The calculation to find out if you can have two VA loans can be a little confusing. So, Here are the steps to follow when figuring out if you can have 2 VA loans:
1. Order your Certificate of Eligibility- Your Mortgage Lender can do this for you. It requires you to provide your DD-214 form. If you do not have the DD-214 form, you will want to find it.
2. Your Entitlement- On you Certificate of Eligibility, it will show the remaining balance of your entitlement. The majority of veterans will start with an entitlement of $36,000. So your remaining balance will be less than this amount.
3. Calculate- Next you will want to take the amount of your entitlement that you have used and subtract it from $104,250. So if you used $30,000 of your entitlement, it is $104,250- $30,000=$74,250
4. The Max your 2nd VA loan can be- Take the number from #3, $74,250 and divide it by .25. This will give you the max your new VA loan can be. Which in this example would be $297,000.
The above list gives you the exact step by step process to find out if you can qualify for a 2nd VA mortgage. Keep in mind, this calculation is only to see if you can get a second VA loan. This does not automatically mean you can qualify for a another mortgage, that would be determined on your income, assets, credit score, etc. This calculation for a 2nd VA loan is for loan amounts of $144k and higher. For loans under $144k there is a different calculation.
Granted is a lot of information for a anyone to remember. So bookmark this article and can come back to it when you or a veteran you know needs a 2nd VA mortgage. It is also important to remember this article because many loan officers are under the impression you not have 2 VA loans. Which is just not true. Please call me with any questions.
David Krichmar
Mortgage Banker NMLS#293883 NMLS
Core Lending dba of Weststar Mortgage Corporation
Branch NMLS#868672 WMC NMLS#93243
Has Written For Realtor Magazine, Houston Agent Magazine, Scotsman Mortgage Guide
Approved MCE Instructor
Office:832-689-6012
David.Krichmar@gmail.com
www.DaveYourMortgageGuy.com
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10 Comments on Can I have 2 VA loans? You sure can, find out how.
Hi David. Wow, really? Had no idea and I'm a veteran myself...thanks for that great piece of info, I'll bookmark this so I don't forget.
Thank You Cheryl. This is great information for all Veterans to know
Hi Dave - I had to bookmark this one. I have always heard, only one at a time. Thanks for providing quality information!
Thank You Cathy!
Dave, this is really good and pertinent information. VA can be very confusing and although I have been doing them for 16 years I got burned by some news I didn't know earlier this year with a person who had a past VA foreclosure in 2001 and although he had bonus entitlement I had never understood how it worked until I had his $88,000 sales contract and an underwriter telling me that he could buy if his contract was over $144,000 but if it's under $144,000 then it's a no go. I was scratching my head and then upon research I found the problem and learned my lesson. We flipped to FHA and made it work but I was a little embarrassed to say the least. Thanks for a great post.
Michael, that is a great point to remember. Like i mentioned in the article, this calculation is for loans over $144k. under $144k, has a different calculation and that makes it more difficult to get a 2nd va loan.
With home prices this low, many more veterans can qualify for this "2nd loan" option than ever before. Thanks for the great information. Veterans make great buyers.
Thank You Doug.
James, that is a great story and thank you for the comment