Posted December 2, 2022 in Blog / Education
Can I Have 2 VA Loans at the Same Time?
Let’s just start with the answer. Yes, you can have 2 VA loans…at the same time!!
Recently, I was attending an educational real estate event and a 20 yr mortgage loan officer shared a story about how he “saved the day” for a veteran trying to get financed for a home.
Here’s the short version of the story. A military veteran applied for a mortgage with a large, national mortgage company. The veteran received a preapproval letter but shortly after getting under contract to purchase he wasn’t receiving communication from his mortgage lender. The vet’s real estate agent referred the vet to a local mortgage loan officer. The loan officer looked at the application and told the vet that he didn’t qualify for a VA loan because he already had one with his current home (the buyer did not intend on selling before purchasing the new home). The veteran was told they needed to switch loan programs and a down payment was required. Unaware that 2 VA loans is allowed with the VA loan program, the veteran went along with the new loan program plus the new terms and closed the transaction.
The loan officer didn’t misguide the homebuyer on purpose. He was simply ignorant to the possibilities and parameters of the VA program.
The VA loan program is different than other programs in that it uses VA entitlement. VA entitlement is the dollar amount the Dept of Veteran Affairs will guarantee on each VA home loan and helps determine how much a veteran can borrow before needing a down payment. There is a simple calculation that your mortgage lender can utilize to determine how much entitlement you have and how much you can borrow.
Fortunately, at the Heartland Branch, we are well-educated and experienced in VA loans and we have multiple military veteran loan officers in our office. We will provide you with all of the benefits of the VA loan program and help you make the best financial decision possible.
We love our military so much that we provide a $500 closing cost credit to all veterans and active military personnel. It’s part of the American Frontline Rewards program. Please contact us today for details!