Purchased a home way back, refinanced in 2013 to a VA loan. COE says that $90635 loan used all of my $36575 entitlement (?)
Looking to keep this home and mortgage short term while I buy a larger home in the same zip code for around 400k with (hopefully) zero down. I’ll use current home while I move into larger home then rent first home for one year and sell.
Lender told me I need to fully pay off first loan to restore entitlement since the properties are in the same neighborhood.
No orders at play here, I’m a veteran.
Is my lender correct?
Second VA Home Loan in same city as First (still paying off)
byu/Such-Cauliflower-356 inMilitaryFinance
Posted by Such-Cauliflower-356
3 Comments
Happy to calculate it for you. Takes me 30 seconds to formulate this.
Lets say FHFA SFR-1 unit county limit is 766,550
You are 100% eligible for 100% VA financing using your remaining entitlements.
Sadly there are a lot of dumbass loan officers that don’t know how to calculate tier 2 entitlement use for veterans. Telling you to flip to conventional just to get a conventional refinance out of it, to restore full entitlement is DAMLO style. That’s misinforming you.
Based off what you shared, You have enough remaining entitlements to use your VA for 100% financing a second time at that price.
Just note VA has no distance requirement. If you bought the house next door whether upsizing or downsizing as long as it makes sense to the VA underwriter
They are not. You can purchase using your VA loan a second time while retaining the first home and the VA loan attached to it. The amount of down payment you’ll need to bring will depend on the amount of bonus entitlement you have left / loan limits in your area. If you don’t have enough entitlement to bring zero down payment, you’ll have to bring 25% of the difference.
How are you allowed to have two homes on Va loans, isn’t it required to be living at the home to have a VA loan?