Can I have two VA Loans at the same time?

VA loans are a fantastic benefit for veterans and service members, offering competitive rates, no down payment requirements, and flexible terms. But what if you dream of owning two homes at once? Can you leverage the power of the VA loan twice? Buckle up, because we’re diving into the world of dual VA loans also know as second tier entitlement!

The Short Answer: Yes, in certain situations, you can own two properties with VA financing. However, it’s not as simple as grabbing a second loan willy-nilly. Here’s the need-to-know:

Key Conditions:

  • Primary Residence Rule: When you purchase the new home it has to be designated as your primary residence. This means you (or an eligible family member) must intend to occupy the new home yourself and it can’t be used as an investment property. The old home you are allowed to rent out and use as a rental.
  • Entitlement Matters: VA loans come with an “entitlement,” a cap on the loan amount the VA guarantees. Using a VA loan reduces your remaining entitlement. So, if you have enough “juice” left after your first loan, you’re good to go. You can call one of our VA loan experts to calculate your entitlement for you and how much you have left for zero money down.
  • Active Duty Perks: Active service members facing Permanent Change of Station (PCS) orders have more flexibility. They can rent out their first home while buying a new one using their remaining entitlement.
  • Lender Approval is Crucial: Even if you meet the above criteria, lenders have the final say. They’ll assess your financial stability to ensure you can comfortably manage two mortgages.

Before You Jump In:

  • Weigh the Pros and Cons: Owning two properties brings financial benefits like potential rental income and appreciation, but also doubles your expenses and maintenance responsibilities.
  • Seek Expert Guidance: VA loan rules can be intricate. Consult a VA-approved lender who can assess your eligibility, navigate entitlement complexities, and guide you through the process.
  • Explore Alternatives: Depending on your situation, other loan options like FHA or conventional loans might be suitable if you have money for a down payment.

So, can you swing two VA loans? It’s possible, but proceed with caution and expert guidance. Weigh the pros and cons, ensure eligibility, and remember – responsible homeownership is key!

Do you have experience with dual VA loans? Share your insights in the comments below!

For more information on second tier entitlement and how to calculate your remaining eligibility it check out our article on VA Loan Limits.

This Post was written by Paul Collier- VA Loan Expert

Feel free to call if you need help with the calculation or getting a VA Loan 714-904-4617

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