Veterans Affairs (VA) home loans are a great way to purchase a home with little to no money down. But how many VA loans can you have? And how do you know if you're eligible for a VA loan in the first place? In this blog post, we will answer all of your questions about VA loans!
How Many VA Loans Can I Have Table of Contents
How Many VA Loans Can You Have?
You can have up to two active VA Loans at one time if you have more than one primary residence.
The number of VA loans you can have depends on a few factors. First, the type of loan you have. If you have a first-time VA loan, then you are only eligible for one more VA loan. But if you have a subsequent VA loan, then there is no limit to how many times you can use the program.
Second, the amount of your entitlement. Your entitlement is the amount of money that the VA will guarantee on your loan. The higher your entitlement, the more loans you may be able to take out. Lastly, your credit score and income also play a role in how many loans you can qualify for.
What is a VA Loan?
A VA loan (Veterans Affairs Loan) is a mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA). The loan is available to veterans, active duty service members, and reservists who have served at least 90 days of active duty during wartime or 180 days of active duty during peacetime.
The VA guarantees a portion of the loan, which allows lenders to offer you a lower interest rate than they would if you were not a veteran. You also do not need to make a down payment on the home if you are using a VA Loan.
How Do You Qualify for VA Loans?
There are a few eligibility requirements for VA Loans. First, you must have served in the military, either in active duty or in the reserves. You must also have a Certificate of Eligibility (COE) from the VA to prove your service history and that you qualify for the loan.
You will also need to meet certain credit and income requirements set by the lender. These requirements vary by lender, but generally, you will need a credit score of 620 or higher and a debt-to-income ratio below 50%.
If you think you may be eligible for a VA Loan, we encourage you to speak with a loan officer to learn more about how this program can benefit you!
What Are The Benefits of VA Loans?
VA Loans offer a number of benefits to veterans and active duty service members. As we mentioned earlier, one of the biggest benefits is that you do not need to make a down payment on the home.
Another benefit is that VA Loans have no monthly private mortgage insurance (PMI) payments. PMI is an insurance policy that protects the lender in case you default on your loan. With a VA Loan, the government guarantees the loan, so there is no need for PMI.
Lastly, VA Loans typically have lower interest rates than other types of loans because they are backed by the government. This can save you thousands of dollars over the life of your loan!
What Are The Average Interest Rates on VA Loans?
The average interest rate for a 30-year fixed VA Loan was recently at around three and a half percent. Interest rates on VA Loans are determined by a number of factors, including your credit score, how much money you have available for a down payment, and the type of loan you choose.
How To Calculate Second-Tier Entitlement On a VA Loan?
If you are looking to take out a second VA Loan, you may have heard of something called second-tier entitlement. This is an additional amount of money that the VA will guarantee on your loan, and it can be used to finance up to four acres of land in addition to your home.
To calculate your second-tier entitlement, you will need to multiply your base entitlement by four. So if your base entitlement is $36,000, your second-tier entitlement would be $144,000.
Keep in mind that not all lenders offer loans with second-tier entitlement, so you may need to shop around to find one that does.
How Do I Apply For a VA Loan?
If you think a VA Loan is right for you, the first step is to get in touch with a loan officer. They will be able to help you determine if you are eligible and how much your entitlement would be.
Once you have that information, the next step is to find a lender that offers VA Loans. You can use our Lender Match tool to find lenders in your area that offer this type of loan.
Once you have found a lender, it's time to start the application process! The lender will need your Certificate of Eligibility as well as some other documentation, such as proof of income and bank statements.
The entire process can take a few weeks, so it's important to start early if you are thinking about buying a home.
Now that you know how many VA Loans you can have, we encourage you to speak with a loan officer to learn more about this program and how it can benefit you!
How Long Does It Take To Get a VA Loan?
The answer to this question depends on a few factors, such as how quickly you can provide the required documentation and how busy your chosen lender is. However, in general, it takes around 30 days to get a VA Loan.
What Are VA Mortgage Assumptions?
A VA Mortgage Assumption is when the responsibility of a home loan is transferred from the current owner to the new buyer. This can be beneficial for both parties because it allows the new buyer to take over the existing loan without going through the application process themselves.
It's important to note that not all lenders allow assumptions, so you will need to check with your chosen lender to see if this is an option for you.
If you are interested in buying a home but don't want to go through the hassle of applying for a loan, a VA Mortgage Assumption may be a good option for you!
Can You Have Two VA Loans at Once?
The answer to this question is yes, but there are a few things to keep in mind. Firstly, you will need to have enough entitlement left over from your first loan in order to qualify for a second one. Secondly, not all lenders offer loans with multiple entitlements, so you may need to shop around to find one that does.
Lastly, if you are looking to take out a second VA Loan, you will need to apply for it just like any other loan. This means that you will need to provide the required documentation and go through the application process again.
What Happens to a VA Loan After VA Foreclosure?
If you have a VA Loan and go through foreclosure, the VA will guarantee the loan for up to 25% of the original loan amount. This means that if you owe $100,000 on your loan, the VA will pay the lender up to $25,000.
The VA does this in order to protect lenders from losses they may incur when a borrower defaults on their loan. However, it is important to note that the borrower is still responsible for any balance remaining on the loan after foreclosure.
If you are at risk of foreclosure, we encourage you to contact your lender as soon as possible to discuss your options.
Someone Who Can Benefit From a VA Loan?
Make sure you share this article with a fellow Veteran if you think they could benefit from a VA Loan.