{"id":2560,"date":"2017-06-12T19:45:40","date_gmt":"2017-06-13T00:45:40","guid":{"rendered":"https:\/\/riverbankfinance.com\/blog\/?p=2560"},"modified":"2018-01-29T20:57:50","modified_gmt":"2018-01-30T01:57:50","slug":"can-you-have-more-than-one-va-loan","status":"publish","type":"post","link":"https:\/\/riverbankfinance.com\/blog\/can-you-have-more-than-one-va-loan\/","title":{"rendered":"Can you have more than one VA Loan?"},"content":{"rendered":"

If you have a Veterans Affairs (VA) Loan on your first home and are thinking about buying a second property, you can get more than one VA Loan<\/a> without having to sell or refinance your current home. This is called VA Loan second-tier entitlement<\/strong>. The higher tier entitlement kicks in for purchases over $144,000 per VA guidelines.<\/span><\/p>\n

The federal government has provided veterans and military personnel with the VA Loan so they can come back to the United States and purchase a home with no down payment. That\u2019s much better than having to come up with a 20% down payment for a conventional loan on a second home, so you should take advantage. If you are considering getting two VA Loans<\/a>, here\u2019s how it works:<\/span><\/p>\n

VA Loans Second Tier Entitlement<\/h1>\n

Michigan has a county loan limit of $453,100 for VA Loans. The VA provides borrowers with a 25% guaranty on their loan, which, in Michigan\u2019s case, would be a maximum of $113,275. If you already have a VA Loan on your first house, the guaranty provided to you would be subtracted from the maximum amount.<\/span><\/p>\n

VA Entitlement Calculation Example<\/h2>\n

Let\u2019s say you bought a $200,000 primary home with a VA Loan and you want to buy a second home in Michigan with a VA Loan. Let\u2019s figure out the math on this.<\/span><\/p>\n

$424,100 X 25% = $113,275 maximum guaranty<\/span><\/p>\n

$200,000 X 25% = $50,000 guaranty and down payment required<\/span><\/p>\n

$113,275 – $50,000 = $63,275 maximum guaranty allowed on second home<\/span><\/p>\n

$63,275 x 4 = $253,100 maximum price of second house<\/span><\/p>\n

Maximum VA Loan Amount Calculation<\/h3>\n

Basically, if you bought a $200,000 home in the state of Michigan using a VA Loan, the VA would have guaranteed $50,000 toward your down payment. If you want to buy a second home in Michigan with a VA Loan, you can buy one that is a maximum of $253,100 with no down payment. If your second home costs more than that, you will have to add some money for the down payment.<\/span><\/p>\n

Let\u2019s say the second home you\u2019re considering is $300,000. The 25% entitlement on that house would be $75,000, putting you $11,725 above the $63,275 maximum guaranty. That means you would have to add a down payment of $11,725 to be able to purchase the second home for $300,000 with a VA Loan.<\/span><\/p>\n

Related: Try our\u00a0VA Mortgage Calculator<\/a>\u00a0to estimate mortgage payments for your VA Mortgage.<\/p>\n

Benefits to getting two VA Loans<\/h2>\n

If you are relocating or just want to buy a new home, a second VA loan may be the best solution. Here are the benefits of getting your second VA Loan versus Conventional financing:<\/p>\n