Financing in Raleigh>Question Details

Ks998, Home Buyer in Raleigh, NC

I am relocating to the triangle and have a VA loan on my current home in AZ. Can I rent that home and get a second VA mortgage?

Asked by Ks998, Raleigh, NC Tue Sep 28, 2010

At 10 months of occupancy during the year I will be able to rent the home and cover my current mortgage payment and property management fees.

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Hi KS 998, I just got off the phone with the VA and they were very helpful in explaining the VA loan benefits. Please call them at 1-877-827-3702 so you can go through with them your specific scenario. Depenging on your entitlement and the amount of your first loan, you may still have some entitlement left for your second home.
So, in short, yes it is possible to have 2 VA loans. It really depends on what you qualified for and the amount you used. And, the 2nd home has to be over $144,000.

Please call the number I provided above to get the answer for your specific situation.
My husband is retired Coast Guard and we are a husband/wife Realtor Team. We have a VA loan on a home in GA. We can help you through this process.

Take Care and thank you for your service!

Shelia
2 votes Thank Flag Link Tue Sep 28, 2010
Hi Ks998,

Shelia is the only person that answered your question correctly.

The one thing she did not address is the fact that you will need to find a lender that will underwrite to VA guidelines WITHOUT using the Fannie/Freddie buy and bail guidelines as a lender overlay. The buy and bail guidelines require the following conditions in order to use the rental income to offset the mortgage payment of your current home.

1) 20-30% equity in the home 0r

2) A 2 year history of receiving rental income, documented on your tax returns
3) 6 months reserves for BOTH mortgage payments.

I happen to have a few lenders that underwrite to VA guidelines so you wouldn't have to worry about the requirements listed above.
1 vote Thank Flag Link Tue Sep 28, 2010
No. You can only have one VA loan at a time. This is why some veterans have problems when they allow a buyer to assume their loan on their old home. In other words, even when the home is sold you cannot get a new loan. So, when you rent it and retain ownership, you cannot get another VA loan.

However, if you buy certain properties you can get HomePath loans with only 3% down. I can show you how.
1 vote Thank Flag Link Tue Sep 28, 2010
Many Sellers aren't aware that you can rent out your current home and still get the lower Owner-Occupant mortgage rates on your next home (so long as your income and the rent qualify for you another mortgage). I've just helped buyers who are renting out their home in Buffalo and taking an early retirement to the Triangle area find a really cute home - and they qualified for Owner-Occupant (rather than 2nd home) mortgage rates.
My husband is Veteran, too, and unfortunately, the program only allows one VA loan at a time (when you eventually sell your current home, your VA benefit will 'return to you' and and you can get another VA loan). I work with a lender who offers 100% financing with no PMI to Buyers with strong credit and stable employment history, however. There are also some other government programs that offer 100% financing at rates comparable to VA loans and with lower upfront fees. Happy to speak with you about those options, if you'd like.
1 vote Thank Flag Link Tue Sep 28, 2010
Hi Ks998,

Shelia is the only person that answered your question correctly.

The one thing she did not address is the fact that you will need to find a lender that will underwrite to VA guidelines WITHOUT using the Fannie/Freddie buy and bail guidelines as a lender overlay. The buy and bail guidelines require the following conditions in order to use the rental income to offset the mortgage payment of your current home.

1) 20-30% equity in the home 0r

2) A 2 year history of receiving rental income, documented on your tax returns
3) 6 months reserves for BOTH mortgage payments.

I happen to have a few lenders that underwrite to VA guidelines so you wouldn't have to worry about the requirements listed above.
0 votes Thank Flag Link Tue Sep 28, 2010
Hi Ks998,

Shelia is the only person that answered your question correctly.

The one thing she did not address is the fact that you will need to find a lender that will underwrite to VA guidelines WITHOUT using the Fannie/Freddie buy and bail guidelines as a lender overlay. The buy and bail guidelines require the following conditions in order to use the rental income to offset the mortgage payment of your current home.

1) 20-30% equity in the home 0r

2) A 2 year history of receiving rental income, documented on your tax returns
3) 6 months reserves for BOTH mortgage payments.

I happen to have a few lenders that underwrite to VA guidelines so you wouldn't have to worry about the requirements listed above.
0 votes Thank Flag Link Tue Sep 28, 2010
I don't believe you can do so. You can use VA loan more than once in your life time, but can't hold two. This would be a great question for a lender. Plesse contact Kevin Martini at 274-3700 SunTrust Mortgage or Robert Ruff, 919-524-6948 Well Fargo lender to verifiy.

If you need any rental, please let me know. I got a few out there.

Thanks,
0 votes Thank Flag Link Tue Sep 28, 2010
I would like to tell you yes...but unfortuantely you cannot. Being a veteran myself; I have used the VA loan program. You cannot ahve more than one VA loan open at anytime. You do have the option of selling the home as an assumable mortgage to someone who is a veteran ro entitled to VA beneftis....

I went through your ordeal about six years ago when I moved to Charlotte from Connecticut. I also have dealt with two different people who are in the same dilemna you are in and got the same answer from the VA recently.
Web Reference: http://www.davedicecco.com
0 votes Thank Flag Link Tue Sep 28, 2010
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