Home Buying in Houston>Question Details

Gary, Home Buyer in Houston, TX

Can I get a VA loan for a second home if I currently have a conventional mortgage?

Asked by Gary, Houston, TX Thu Jul 8, 2010

I want to rent first home and buy second using my VA

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One of the most common questions from borrowers who have purchased a home with a VA loan is if they are able to use their benefit again. Fortunately, there is no limit on the number of times a veteran can use the loan program. This is a life-long benefit for those who have served our country. Securing another VA loan requires looking into a borrower’s VA Loan entitlement. But what exactly does that mean?

> What is entitlement?
Every veteran and active service member who meets the VA's eligibility requirements has something called entitlement. Entitlement can be a bit confusing, even for those working in the mortgage industry, but the most common definition is that it’s a specific amount the VA pledges to repay to a lender if the borrower defaults on the loan. This is part of the VA Loan guaranty.

Eligible veterans in most parts of the country have a primary entitlement of $36,000 and a secondary entitlement of $68,250, which is used when a veteran purchases a home for more than $144,000.

There are can be higher entitlement amounts in more expensive areas. When a qualified borrower purchases a home through the VA loan program, they are using some or all of their entitlement. The VA typically guaranties a quarter of the loan amount, so borrowers will typically utilize a quarter of their entitlement when purchasing.
Referral link:- http://vastreamlinemortgage.net/types-of-va-home-loans/
1 vote Thank Flag Link Mon May 4, 2015
Numerous circumstances exist that allow the borrower the opportunity to qualify for an additional VA loan following a foreclosure, bankruptcy or short sale. In fact, the VA has not set a cap on the number of times the VA loan entitlement may be used. The entitlement is restored after previous loans have been paid off. When talking about multiple loan uses, the question of purchasing a second home while possessing more than one loan at the same time often comes up.

Surprising to many is that the possibility of using multiple VA loans at once does, in fact, exist. Qualifying for a second loan in conjunction with the first is contingent upon the service members remaining entitlement and their unique situation.

Military members are allotted two forms of entitlement, basic and bonus. The basic entitlement amount is $36,000 while the bonus entitlement is for $144,000; it is permissible to use both entitlements in connection with each other. Essentially, if the previous home purchase did not drain the borrower of the entirety of their entitlement, they may use the remainder for a second home purchase. Furthermore, when the borrower pays back the original loan, the entitlement is restored.

Aside from the remaining entitlement requirement, a borrower must also demonstrate that purchasing a second home provides a net tangible benefit.
Reference Link:- http://valoanguidelines.org/refinance-loan-programs/
0 votes Thank Flag Link Mon May 11, 2015
Can I get a Va loan if I already have an reversed mortgage?
0 votes Thank Flag Link Tue Apr 28, 2015
Talk to a good loan officer and check your options. Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sat Aug 24, 2013
I just had clients do exactly what you are asking. As long as the VA loan will be used to finance your primary residence (your new home) and you have a valid lease on the first home you should have no issues.
Best of luck!
Nelene Gibbs, Realtor, e-Pro
Web Reference: http://www.nelenegibbs.com
0 votes Thank Flag Link Tue Jul 13, 2010
Hi Gary,
If the second home is going to be your primary home and you qualify for a VA loan, then what you are planning sounds reasonable. But, you need to get with good loan officer who will investigate more programs that might suit your needs as well, based on the timing of your purchase and your current circumstances. We've bought homes where we've used my Husband's VA benefits and we've purchased homes where we have not.

The website below is a good resource for finding lenders who work in a myriad of loan programs.
0 votes Thank Flag Link Fri Jul 9, 2010
Hello Gary,

To qualify for a VA loan, the home that you're buying has to be your primary residence. Yes you can get a VA loan, but under VA guidelines, you cannot own another property. Since you want to rent your first home, you would be considered an 'investor'.

If you really want to buy a new home using a VA loan you will need to sell your first home. I can provide you with a free market analysis of your home, that way you know how much you can sell it for.

Another option would be to re-finance your current home using a VA loan. That way, you'll be saving money on your mortgage payment.

Feel free to contact me directly for more information at 281-380-5589.

We appreciate your service to the United States of America!
Web Reference: http://www.amandahomes.com
0 votes Thank Flag Link Fri Jul 9, 2010
Expert who can render an opinion is mortgage broker who will review your entire file.

Lynn911.com

THANK YOU for your military service too our country !
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Jul 8, 2010
Garyu if what you say is true which will be a determining factor in your ability to do the loan, you may be reguired to have a sufficient equity position oin hte home your leaving or you may have to qualify to carry both mortggaes without using rental income to qualify for te new loan. Good luck with your desires.
0 votes Thank Flag Link Thu Jul 8, 2010
Garyu if what you say is true which will be a determining factor in your ability to do the loan, you may be reguired to have a sufficient equity position oin hte home your leaving or you may have to qualify to carry both mortggaes without using rental income to qualify for te new loan. Good luck with your desires.
0 votes Thank Flag Link Thu Jul 8, 2010
Not for a "Second Home". A second Home is like a vacation property.
But if you mean that your new purchase will be a primary residence, then YES!!
0 votes Thank Flag Link Thu Jul 8, 2010
That's a good question. My parents just did this, but I think there may be a distance requirement. A licensed loan officer should be able to answer that question for you. Good luck!

Regards,
Amber Carrillo, Broker/Owner
It Homes
832-643-5632
0 votes Thank Flag Link Thu Jul 8, 2010
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