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Can we have two VA loans at the same time?

We have a current VA loan in the amount of $419K, and want to purchase an additional home at $399K. Is this something that we can do? If so, what is the process? by sharon.wills5652 from Eagle Lake, Texas. Aug 18th 2015 Reply

William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,726 contributions

The short answer is no.. VA is only intended for "Owner Occupied" properties.. if you had purchased a home, and are now vacating that home to purchase another primary residence, then so long as you have VA entitlement remaining, then yes.. you could use your Va benefits.. Example:.. you purchased a home for $150K using VA, but you now wish to move and use VA a 2nd time, but your going to keep the original property and convert it to a rental. The new purchase price is $267K. then in this scenario, you can use VA for another home loan. ($150K + $267K = $417K) But your scenario is different.. VA guarantees up to $417K in entitlement. and you used 100% of your entitlement on your first property, which means you have no remaining entitlement left.. so you would not be able to use VA for financing.. If you sell your existing home, or refinance it using conventional, then you would free up your VA entitlement and you can use it for your next purchase. If the goal is to turn your existing property into a rental, and you have 25% equity or more, then you can use conventional financing, do a "rate and term" refinance for an investment property loan, and no monthly mortgage insurance would be needed.. and this would allow you to purchase your primary home with no money down.. there additional creative ways to go about doing this, but we would need more info to advise you.. for this reason, I suggest you contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Aug 18th 2015
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