VA loan for purchase while Veteran already has another VA loan

And the seller pays off the buyer's debt!!!

This VA purchase closing had 2 characteristics of a VA loan that most did not know: Accessing a Veteran's 2nd Tier VA Entitlement and the seller paying off debt for the Veteran through sales concessions for the buyer.

Our buyer that is a Veteran has an existing VA mortgage on another property that is currently a rental property and wanted to purchase another property but thought that a VA loan wasn't an option. On top of that, to feel comfortable with the payment, the Veteran really wanted some debts to be paid off to qualify better for the house of their dreams. So our loan officer along with the VA underwriter came up with a plan:

The Plan! Figure the 2nd Tier Entitlement for using VA to purchase a home while keeping the other VA loan outstanding on the rental property. The VA loan, because of the size, couldn't cover 100% of the price but it did cover about 98% of the price with no PMI! On top of that, the buyer's closing costs and two installment loans were paid by the seller in the seller concessions (which can be up to 4% of the sales price). So therefore the result was a very low down payment VA loan with no PMI, debts were paid off, and they get to keep the other VA loan as well.

If you or your buyer have questions about obtaining a VA loan and need an expert to figure options, please call our VA loan experts today.