Can I Buy Two Homes Using VA Loans

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• CAN I BUY TWO HOMES

USING VA LOANS?
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• Taking out a second VA loan while still holding
  your original loan is known as second tier
  eligibility or bonus entitlement.

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• The question of whether a borrower can take out a
  VA loan to buy two homes is an important one as
  families grow or active duty personnel move to a
  new assignment.

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• A loan officer will review the application for a
  second mortgage and take into account a number of
  considerations.

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• These include whether the current loan is in good
  standing, whether it is on a rental property that
  can cover its own expenses

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• ...whether the family is looking for a second
  home due to a Permanent Change in Station (PCS)
  or shift in family circumstances and the size of
  the loan requested.

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Can I Buy a Second Home with a VA Loan While I
Still Own My First Home?
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• Each borrower, whether on active duty or a
  veteran, has a designated entitlement for buying
  a home.

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• If you are keeping the original home, you can use
  the full entitlement one more time for purchasing
  another property but only if you have paid off
  the original VA loan.

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• Many borrowers choose to do this, for example, if
  they have bought a home in one area where theyre
  stationed

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• have received a new PCS, and want to keep their
  first home as a second home, or to save it as a
  retirement residence.

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• However, the amount youll have to spend on a
  second home will depend on how much eligibility
  was used on the first home.

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Can I Buy a Second Home with a VA Loan After I
Sell the First Home?
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• If your original VA mortgage has been paid off
  and you no longer own the property, you can have
  your entitlement restored as many times as you
  want.

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• VA eligibility can be reused for every home you
  purchase from the first to the last.

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• This is an amazing benefit considering that the
  loans do not require either a down payment or
  expensive mortgage insurance.

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• Providing you have good credit and sufficient
  income, lenders will often loan up to four times
  your available entitlement without a down
  payment.

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• Loans are not made through the U.S. Department of
  Veterans Affairs, but rather through a private
  lender with partial guarantee by the VA.

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Do I Have to Live in the Home?
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• The VA specifies that VA home loans are for
  residential use which disqualifies purchasing
  investment properties from the loans.

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• In other words, the borrower must use the
  property either as a first or second home.

Generally, properties may not consist of more
than four family units and one business unit.
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• This provides somewhat of a loophole, as
  borrowers could reside in one of four apartments
  and rent the other three and the storefront.

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• Technically, you could then wait a year, find out
  if youre eligible for an IRRRL, take one out and
  then buy a second home with your remaining
  entitlement.

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• You can also use a VA loan to refinance a home
  you originally occupied as a primary home and now
  rent.

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What is an IRRRL?
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• The VAs Interest Rate Reduction Refinance Loan
  (IRRRL), also known as VA Streamline Refinance,
  is a refinance mortgage loan available to
  borrowers with existing VA mortgages.

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• The program allows refinancing without the need
  for presenting normally required documentation

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• including credit score, bank account
  verification, home appraisal and
  income/employment verification.

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• The loans are available through VA-approved
  lenders and are guaranteed by the federal
  government.

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• The loan allows you to refinance at a rate lower
  than your current rate and is very popular
  because of its ease of use.

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• To get an IRRRL loan, you need to

• Be current on your mortgage.

• Be able to certify that you have resided in the
  property.

• Have a new loan payment lower than your current
  mortgage payment.

• Loan must be a VA to VA loan, so you have to have
  borrowed your original mortgage from the VA.

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How Do I get My Entitlement Restored?
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• In order to have your remaining entitlement
  restored, you need to contact the nearest VA
  office and complete VA Form 26-1880.

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Mortgage Originator Jimmy Vercellino,
specializing in VA loans, helps veterans use
their VA loan benefit to their greatest advantage.
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Be a proud homeowner today. For more details
call 480-351-5904 or visit the site
https//www.valoansforvets.com/va-loan-eligibility
/
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VA LOANS FOR VETS 7702 E. Doubletree Ranch Road,
Suite 220 Scottsdale, AZ 85258 Phone (480)
351-5904 Email jimmyv_at_fcbmtg.com
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