Being in the military, moving can be normal; however, it never becomes easier. Learning the local school districts, selecting and enrolling kids, getting familiar with various housing communities or nearby cities/towns, determining the best commuting path, and knowing where to buy groceries and convenience goods all make the process a bit more challenging.

Yet, when it comes to housing, the challenge can seem monumental. Snohomish County's naval base is Naval Station Everett and many sailors end up PCSing to the area and decide to grow some roots after years of deployment and station changes.

Now its time to buy a Snohomish County home yet it is common for VA home buying benefits to have already been used by purchasing in another State.

Now what?

You own a property in back in Mississippi, it generates income, and is not something you're ready to sell; however, you do want to purchase another home for your family. Seems like a dead end or come up with a downpayment for a new purchase, right?

Not exactly.

QUESTION: Can a Veteran Have More than One VA Loan at a Time?

Simply put, Yes.

Yes, a veteran can have more than one VA loan at time if the veteran isn't currently using all their VA guarantee amount.

Multiple VA Loans Explained

 

It’s not an everyday occurrence. But there are circumstances that allow VA borrowers to have two or more VA loans in play at the same time. Typically, the scenario involves a VA homeowner who has to relocate to a new duty station but wants to keep and rent out his or her primary residence. But veteran homebuyers can look to do this, too.

For example, let’s say you bought a $200,000 home at your current duty station and get PCS orders a couple years later. Rather than sell the home, you want to rent it out and buy again at the new duty station.

Here’s how the math works, assuming you’re buying in another county with the standard VA loan limit ($417,000):

  • $417,000 x 25% = $104,250 Maximum Guaranty
  • $104,250 – $50,000 = $54,250 Entitlement Available
  • $54,250 x 4 = $217,000 Maximum Loan Amount With No Down Payment

So, in this example, you could look to borrow up to $217,000 before needing to factor in a down payment. Anything above that amount would require a down payment of 25 percent of the excess.

One of the challenges with this situation is meeting the debt-to-income ratio and residual income requirements, since you’re basically on the hook for two mortgage payments each month. It’s important to fully understand the VA loan requirements in order to determine if you can juggle two loans at once.

Having a renter locked into a lease who will cover those old monthly payments can go a long way toward making this work. [SOURCE: A Simple Explanation of Second-Tier Entitlement on VA Mortgages]

 

Please let us know how we can help for an upcoming purchase, a possible sell due to a change of station, or learn more about VA benefits.