How Many Times Can You Use a VA Home Loan?
How many times can you use a VA home loan. A VA loan is a lifetime benefit of a military and veteran, it has no limitation on how you can use VA loan. As long as you qualify as a borrower, you can have as many mortgages as you want in your life. Moreover, in under certain circumstances, it would be possible to have more than one VA loan at the same time. However, getting a second loan does need to look on your VA loan entitlement.
So, what is a VA loan entitlement?
Every pretty active service member and veteran has something called VA loan entitlement, it’s for those who basically meets the VA’s service requirements. A VA loan entitlement is basically the amount promised by the borrower to definitely repay it back to the lender, which is quite significant. Most of the VA lender usually gives a generally minimum of 25% of the kind of total loan limit.
What about reservist and National Guard? Do they eligible for VA loan?
The answer is yes, but you have to reach certain criteria for it. Take a look on the next step if you are a member of a Reserve or National Guard. You might want to know the information regarding certain criteria of a VA loan for you.
Basically, every Reserve and National Guard members who are released under certain circumstances without being dishonorably discharged are eligible for VA loan. But in details, there are several requirements for a member of reservist or National Guards to qualify for VA loan.
Firstly, National Guards and reservist who have completed at least 6 years of service or an active member who mobilized for a period of at least 90 days are eligible for VA loan.
Secondly, members who served at least six years in selected reserve and were either; retired, honorably discharged, and transferred to Standby Reserve are still eligible.
Third, members who are being discharged or released from active duty due to service disability reasons.
Once either of these criteria been met by a member of reservist or National Guard, they will be able to obtain a Certificate of Eligibility (COE). A certificate of eligibility will give you information and confirm your eligibility as borrower for the lender. It is possible for you to start a VA loan without certificate of eligibility on hand. However, the lender might need the certificate of eligibility before the loan period closing.
How many times can you use VA Loan? Then is it possible to have two VA loans at the same time?
It is possible, you need to make sure that you still have remaining entitlement to make a secondary loan. The COE or certificate of eligibility will tell you how much entitlement that you still have remains. Now, what you have remain in this entitlement is how much you will be covered for the loan.
How about VA home loan, is there any limit to it?
If you still have full entitlement, you don’t actually have any home loan limit. Now, if you meet any these requirements, then you will have full entitlement; Firstly, you essentially have fully paid your previous loan and then you sold the property, this will made you restored your entitlement into really full again. Secondly, you have never used the home loan benefit, contrary to popular belief. Surely, the entitlement mostly is still full and not partly available for loan in a subtle way. If any of these requirements is met, then you do not have to for the most part worry about a VA home loan limit in a big way. But, you have to specifically think and make sure that you have met these requirements. If, under some circumstances that you particularly do not have either of these requirements, then you particularly do not have entitlement remaining for you, which is fairly significant.
If you have remaining entitlement, then you have a home loan limit. Your VA home limit is based on the county loan limit, depending on where you live. This means the default and basic limit of a home loan limit when you don’t have a full entitlement is 25% per county loan limit and minus the amount of the entitlement that you have used. You may have remaining entitlement if you meet these requirements; firstly, you still have an active loan that you need to paying back, then you have paid your loan in full, but you still own the property. Lastly, you have switched from a VA loan to non-VA loan but you still own the property. If any of these requirements are met, you don’t have to worry that you don’t have a home loan limit.
Then, if you need to know what the county loan limit will affect you, take a look at this.
You probably have to make a down payment if you are using your remaining entitlement and your loan amount is over $144.000, which is the allowance that a VA loan gave you. Now, most lenders have set the requirement for your entitlement. The down payment, or combination of both should make a total of 25% and covers your total amount. If you are willing and able to pay a down payment, you probably will have more loan than the loan county limit. Also, take a note that the lender will need to verify and approve you for the loan. They will look into your credit score, income, and your assets. Then, they will determine how much they will loan you based on those numbers.
So, basically, if you have full entitlement, you do not have the loan limit on a VA loan term. But then, you have to remember that if you have any remaining entitlement, which means you have not fully paid back a loan term to a lender, then you have a loan limit. A loan limit that is based on the county loan limit. If you want to have full entitlement, make sure that you have paid your loan in full and still own the property.