Can You Borrow A Second VA Loan?

Can You Borrow A Second VA Loan?

VA home loans – VA home loans first time buyers

A VA loan already helped you buy a home. Perhaps you’re wondering if a second VA loan is possible. Yes, but you should understand how your entitlement benefit works, what a funding fee is and other factors before applying.

Can I have more than one VA loan?

If you are eligible to take out a VA loan (more on that below), you will have access to it for the remainder of your life. A VA loan is typically required in the following situations:

Once you’ve purchased a house with a VA loan, you can sell it, restore your entitlement, then buy your next home with a VA loan. You can obtain as many VA loans as you sell each home and move every few years.

A VA loan is refinanced into another VA loan, and you may apply for more than one VA loan for the same home simultaneously. Multiple ways exist for you to take advantage of a second VA loan. After selling your current home, you can regain your VA entitlement.

Another VA loan doesn’t always require you to sell your house or move. If you want to lower your monthly payments and interest rate, you can refinance into a VA streamlined refinance, also known as an IRRRL. Furthermore, if you refinance into a VA cash-out refinance loan, your interest rates and monthly payments may be lower.

Thirdly, you can carry two VA loans for two different homes simultaneously. A VA lender must approve multiple loans if you have a Permanent Change of Station order, and this can happen when a service member receives a Permanent Change of Station order. To qualify for both loans, you must demonstrate that you can repay them simultaneously.


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Related:Minimum Credit Score for a VA Home Loan

Explaining VA mortgage entitlements.

VA loan entitlements are guaranteed amounts of money. Knowing how much you can borrow before needing a down payment can determine how much you can borrow. In addition to lower rates, no down payment, and more accessible qualification guidelines, lenders are encouraged to offer VA loans with entitlement protection.

What is the process for getting a second VA loan?

Getting a second VA loan will likely resemble your first VA loan. The following are the key steps:

Get your certificate of eligibility. It will also help you determine how much of your entitlement benefit can be used and prove to lenders that you’re eligible for a VA loan. Your regional service center or the benefits portal can provide it to you. You may also need your discharge papers.

There will be no recourse if you forfeit your VA loan entitlement.

You could lose your entitlement to VA loans permanently. You may be able to repay your VA mortgage if the lender forecloses and the VA sells the property for less than you owe. You cannot get your entitlement back if the VA pays the lender.

Likewise, a short sale involves selling your home at a loss. Short sales and foreclosures don’t qualify for the one-time restoration of entitlement benefit.

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