For you veterans and active duty service members out there thinking about using the VA home loan benefit, this is for you. The VA home loan entitlement is what guarantees the loan for you so you don't have to make a down payment.
VA entitlement is generally going to be around 25% of the loan amount. If the home loan needed is $200,000 then the VA will guarantee 25% of that or ($50,000). Eligible veterans in most parts of the country have a primary entitlement amount of $36,000 and an additional secondary entitlement (also referred to as second tier entitlement) of $145,550. Adding those two numbers together, you have a total VA entitlement available of $181,500.
If you already have a VA loan on a home and you're debating on selling it, hold fast! You may have the option to purchase another home with $0 down payment by using your VA 2nd tier entitlement. This means that you will be leveraging the remaining amount of entitlement that you have available as long as you're going to live in that home as your primary residence.
Follow me for more tips on Instagram @mortgagetipdaily or on TikTok @mortgagetipdaily
Every scenario is different, so it's not necessarily going to be a guarantee that this can happen every time. Contact your trusted local VA-experienced lender because they need to calculate some numbers for you.
1. How much entitlement are you currently using on your home
2. Calculate how much entitlement you have remaining to be able to purchase a second home without having to make a down payment
If the first home that you purchased was $200,000, then you would have used $50,000 in VA loan entitlement. Subtract the $50,000 of entitlement that you have used from the total maximum guarantee that the VA provides of a $181,500. that means you have $141,550 in remaining VA home loan entitlement. Multiple $141,500 by 4 = $526,200.
This means that you may be eligible to purchase a second home without selling the current home and you could qualify for up to $526,200 with $0 down payment.
This is how you can have two VA loans out at the same time.
Follow me on Facebook
To verify eligibility, your lender may need a copy of your Form DD-214, Statement of Service, Retirement Points Statement, or other proof of qualifying service history.
Contact me today to verify how much VA entitlement YOU have available at TerryRoberts.com
For daily market updates, follow me on Instagram @mortgagetipdaily subscribe to my newsletter or check out my blog at TheHomeLoanHub.com
Terry Roberts is a U.S. Marine Corps Veteran and specializes in residential mortgages, including new construction, conventional, FHA, and VA home loans. He has helped more than 10,000 clients start the homebuying process across America.
Terry Roberts, USMC Veteran | Sr. Loan Officer NMLS 397987 | E Mortgage Capital
With a rich background spanning over a decade in the mortgage and real estate sectors, Terry Roberts has become a cornerstone in guiding over 10,000 clients through the complexities of the home purchasing journey in the United States. His expertise covers a broad spectrum of housing loans including conventional, FHA, VA, and cutting-edge new construction financing options.
Emerging from challenging early life circumstances, including teenage parenthood, dropping out of high school, and facing homelessness, Terry's determination led him to serve in the US Marine Corps. This decision was driven by a commitment to safeguarding freedom and securing a better future for his family. His active duty service in the US Marine Corps, marked by nearly a decade of dedication, instilled in him a profound desire to assist fellow Americans in achieving homeownership, a cornerstone of the American dream that he fiercely believes in.
Terry leverages his profound understanding of the real estate market to empower individuals in their pursuit of property ownership as a strategic investment for wealth generation. His journey from adversity to becoming a beacon of hope and guidance in the real estate domain is not just inspiring but a testament to his commitment to his clients' success.
Connect with Terry Roberts, a proud USMC Veteran and Senior Mortgage Broker (NMLS 397987), for expert guidance on your path to homeownership. Visit www.TerryRoberts.com at E Mortgage Capital, where every client's dream is approached with the respect and dedication it deserves.
Comments