Can You Have Multiple VA oans at One Time?
Minneapolis, MN: It is potentially possible to have more than one VA home loan at the same time. It all depends on your VA Entitlements, if they are used, and how much is used.
A great example situation might be that a military person had a VA home loan on a house, left the area, and turned it into a rental instead of selling it.
Can they get another VA loan to buy a new primary residence? Yes!
All veterans have multiple tiers of entitlements. First tier, second tier, and full entitlement need to be understood if a person can have two VA at the same time. First understand that you can get a zero down loan up to 4 times your entitlement, and up to the maximum VA zero down loan limit in your area. In most of the country, this is currently $417,000. The average no-down-payment VA purchase loan is around $210,000. This loan amount would use up around only a portion of an eligible borrower's entitlement. This leaves some entitlement left over for another loan.
Here is a breakdown:
- 1st-tier entitlement is $36,000 or enough for a loan of up to $144,000
- 2nd-tier entitlement is $68,250, and can be used for loans over $144,000
- Full entitlement is $104,250 for loans up to $417,000 (most areas)
Multiple VA home loan math
So assume you bought the current home for $230,000. This home used up all of your 1st-tier entitlement and some of the 2nd-tier, for a total of $57,500 used of your maximum entitlement of $104,250. Subtract the current used from the maximum allowed, and you get $46,750 entitlement remaining. Now take your remaining entitlement, and multiple by 4. So in this example, you would still be able to buy another home with a zero down VA loan of up to $187,000.
Now it gets a bit weird from here. Assume you wanted to only buy another home for just $130,000. This would not be allowed, because the home is under $144,000, and you alreadyy used up all your tier-1 eligibility.
Confused? If you are buying a home with a VA loan in MN, WI, or SD. Just call me at (651) 552-3681 for assistance.
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Joe Metzler is a Senior Mortgage Loan Officer for Minnesota based Mortgages Unlimited.
He was named the 2014 Minnesota Loan Officer of the Year, and Top 150 Loan Officers in the Nation for 2010, Top 100 for 2015, and Top 300 in 2016 by Origination News. He provides Home Mortgage Loans in MN, WI, and SD. He can be reached at (651) 552-3681
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