Can I get a conventional home loan if I already have a V.A. loan?

Asked by gsmithereens, San Diego, CA Tue Jul 30, 2013

I currently live in a house that I bought with a V.A. loan. My wife and I are wanting to possibly rent out this house and build a new one using a conventional loan. Is this possible? Our debt to income ratio would be right at 39% if we included the monthly payment for the new house. Thanks in advance!

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5
Dennis Clark, , Omaha, NE
Thu Sep 12, 2013
Yes, you can. The key is whether you can qualify for the new mortgage with your current mortgage and debts. There is no provision that stops you from have both a VA loan and a conventional loan.

Dennis W Clark
Freedom Lending, LLC
NMLS#13970
402-333-5432
dennis@mortgageloansofamerica.com
0 votes
Ann_globenet…, , Westminster, CA
Thu Sep 12, 2013
Hi Gsmithereens,

It is definitely possible to receive a conventional home loan while you still have a VA loan. Conventional loans are ideal for investment properties or second homes. As with any loan, your credit rating, down payment amount and employment history will all be considered. Since there are multiple agencies involved in the process, we highly recommend consulting one of our experienced lending professionals.

Visit us on the Internet at http://www.globenetcapitalgroup.com or call us at 714.988.8399.
0 votes
, ,
Wed Jul 31, 2013
Hi Gsmithereens,

Thank you for your service.

Believe it or not, you actually maybe able to buy a new home with another VA mortgage under the 2nd tier or bonus entitlement provision.

Here's an example:


If your current VA loan started out at $150,000, you would have used $37,500 of your entitlement. Here's how you calculate it, $150,000 X 25% = $37,500.00.

The second tier or bonus entitlement would be as follows:
$104,250 - $37,500 = $66,750 in available entitlement. Now multiply that by 4 & you get a maximum new loan amount available without a down payment of $267,000.

The other good thing about this is that in cases of PCS orders or relocation we can use the rental income from your other property to help offset the existing mortgage payment to help you qualify for your new home.

Please feel free to contact me for more information or help.

Check out my recommendations here on Trulia from some of my recent VA clients.
http://www.trulia.com/profile/johnburke/#__rec


Thanks,

John Burke
Senior Mortgage Banker
Peoples Bank & Trust Co.
(877)228-9069
0 votes
Dennis Clark, , Omaha, NE
Wed Jul 31, 2013
Based on the information you have provided, you can indeed buy your next home using conventional financing. Besides the debt to income ratio you spoke about, you would also have to meet some reserve requirements since you would have more than one home. If you need more information, please feel free to contact me.

Thanks,



Dennis W Clark
NMLS#13970
Freedom Lending, LLC
402-333-5432
dennis@mortgageloansofamerica.com
0 votes
Rusty Johnson, Agent, Omaha, NE
Tue Jul 30, 2013
Yes you absolutely can do so. Depending on your credit standings, job history, down payments, etc, there will be multiple avenues for you and your wife to explore. Conventional loans are always accessible for second homes/investment properties. You will want to consult with a lender to point you in the right direction and find the best product available.

Regarding your VA for rental; this is typically supposed to be your primary residence. Renting could spark some issues/obstacles. This is where a good lender can get creative to take care of your needs and avoid getting you into a bind.
0 votes
Thank you Rusty! I've been told that it isn't possible so this brings welcome news. Appreciate your reply.
Flag Wed Jul 31, 2013
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