Multiple VA Loans: Separating Fact from Fiction

Are you a veteran or active-duty service member searching for your dream home? If so, you may have heard whispers about the possibility of obtaining multiple VA loans. But with all the misinformation floating around, it’s time to separate fact from fiction.

In this article, HomePromise will help you understand multiple VA loans, which is an intriguing and often misunderstood subject. We will also assist eligible veterans in fully grasping their VA loan entitlement. For veterans and active-duty military members, it’s essential to understand how VA home loans differ from conventional mortgages.

Overview of the Benefits of VA Loans

VA loans are popular among veterans and military members because they offer many advantages and are a top financing choice. Some of the key benefits of VA loans include:

A VA loan lets you purchase a house without having to make a down payment. This is great for people who can’t afford a regular down payment or want to save their money.

VA loans usually have lower interest rates than conventional loans. This makes them more affordable throughout the loan’s duration.

VA loans don’t require monthly private mortgage insurance (PMI). Conventional loans require PMI if you make a down payment of less than 20% when buying your home.

Veterans and military members have easier credit requirements. VA loans are easier to get when compared to conventional loan credit requirements.

VA loans do not have any prepayment penalties or fees for paying off early. There are no penalties for paying off your loan before the due date. Therefore, we will not punish you for being financially responsible.

Refinancing is simpler for VA loan holders. The VA IRRRL is a good choice for refinancing VA loans with fewer steps than conventional loans.

What is a Multiple VA Loan?

There are many misconceptions about what a multiple VA loan is and how it works. A multiple VA loan is when one veteran has two VA loans at the same time. 

If you have an existing VA loan on your primary residence and want to buy a new home, you can often keep your existing VA loan and buy a new home with no money down again.

Call 800-720-0250 to speak with a VA loan expert and determine if you qualify for multiple VA loans. The rules can be complex.

Now, let’s dispel some of the myths surrounding multiple VA loans:

One of the most common misconceptions about multiple VA loans is that they are only for those who have great credit. This is not true! Multiple VA loans can be used by anyone who qualifies for a VA loan, regardless of credit score.

Many people think you need a down payment for every loan when getting another VA loan, but that’s not true. This is also not true! With a VA loan, you can often borrow up to the sales price to buy a property with no money down. However, there is a condition – you must have enough remaining VA eligibility.

It is also believed by many that you can only have one VA loan at a time. Wrong! You can actually have multiple VA loans at the same time, as long as you qualify for each individual loan.

Having a previous VA loan doesn’t guarantee automatic qualification for a new one. Each loan will still need to go through the normal underwriting process to ensure that you can afford the new payments.

Having multiple VA loans increases the cost of each loan compared to the previous one. Again, this is simply untrue. It really depends on market conditions at the time you apply for your second loan.

Pros and Cons of Multiple VA Loans

Pros:

1. May be able to own two or more homes with no money down
2. If eligible, rent an old home and use it as an investment property for making a down payment.
3. Use your VA benefits to get interest rates that are usually lower than conventional loans

Cons:

1. Because you’re buying homes with no down payment, if home values drop you may have a loan balance greater than the home’s value
2. There is a limit to how many VA loans you can buy with no money down which varies by county
3. If your first VA loan is large and your second VA loan is also large, you may need to make a down payment on your second VA loan.

Who Can Qualify and How Much Can They Borrow?

There are a number of VA loan myths out there, so let’s set the record straight.

First, you may have heard that only first-time homebuyers can get VA loans. The VA Loan program is for active duty service members, veterans, reservists, National Guard members, and eligible surviving spouses.

First-time home buyers and those who have bought a home before are permitted to use VA loans. There is no limit on the number of times you can use your VA loan eligibility.

Secondly, some think there is a requirement to pay a specific amount of money upfront on VA loans. This is also not true.

The VA loan program is a no-down payment program that allows generous seller credits for closing costs.  You can buy a home without paying any money upfront and the seller will cover all the costs of closing.

Last, some think that VA loans are hard to get. This is also not true. The VA Loan program is available for many active duty service members, veterans, reservists, National Guard members, and eligible surviving spouses.

You may even qualify for a VA loan with a minimum credit score of 580 and limited assets. Call 800-720-0250 to speak with a VA loan expert to see if you qualify.

Multiple VA Loans: Two VA Loans At The Same Time?

Veterans and active duty service members can have two VA loans. However, we do not allow them to use both loans to purchase two homes at the same time.

Many VA lenders have a requirement that you must use a VA loan to purchase your first home. Additionally, you are expected to reside in this home for a year before you can purchase another one. Some lenders like HomePromise may be able to make exceptions to that rule.

Unfortunately, there’s a lot of misinformation out there about multiple VA loans. Let’s separate fact from fiction and look at the real deal on multiple VA loans.

To buy another home with your VA benefits, some think you must first pay off your current VA loan. Once the loan is paid off, you can then apply for a new loan.

This is a common misunderstanding. You don’t have to repay your current VA loan to use your VA home loan benefits for buying a new home.

Some believe you cannot purchase a multi-unit property with a VA loan and then buy another one later. This is also not true. You can use your VA benefits to buy more than one multi-unit property like a duplex, triplex, or fourplex.

FAQs

First, let’s start with the basics: Yes, you may qualify to have more than one VA loan at a time. You may be able to use your VA loan benefits multiple times. This is possible as long as you’re buying a VA-eligible property.

-Are there any benefits to having multiple VA loans?

Multiple VA loans can offer an array of advantages for eligible veterans. Veterans may be able to easily buy two, three, four, or more properties with multiple VA loans, which helps them diversify their real estate investments. VA-backed loans offer low-interest rates and flexible repayment options, ensuring financial stability for borrowers.

Multiple VA loans provide veterans with the ability to use their VA benefits to build real estate investments. They may also help veterans secure their future and the future of their loved ones. This is achieved through strategic property purchases.

-Does having multiple VA loans mean I’m a high-risk borrower?

Having multiple VA loans doesn’t make you a high-risk borrower; in many cases, it will show a lender that you can handle multiple mortgage payments easily. This demonstrates your commitment to homeownership and financial stability.

By leveraging multiple VA loans, you demonstrate confidence in managing diverse properties while maximizing the advantages offered by this esteemed program.

-How many VA loans can I have at one time?

Some think you can only have one VA loan at a time. But, as an experienced VA lender, HomePromise has done three or more VA loans for one veteran. The VA loan program is great for buying additional real estate because it is flexible and offers benefits to veterans and service members who qualify.

The Department of Veterans Affairs allows veterans with remaining entitlements to obtain multiple VA loans simultaneously. This applies to those who already have a VA loan for their primary residence.

-Is there a limit to how much I can borrow with a second VA loan?

Veterans can confidently pursue a second VA loan for buying a new home or refinancing. There are no strict limits set for this opportunity. It is often possible to get a large loan amount on your second VA loan. But, there are some limits to be aware of. Call 800-720-0250 to find out more.

Ask a HomePromise VA mortgage expert about second VA loan limits. HomePromise understands complex situations. Veterans can confidently explore borrowing options by understanding nuances and working with experts – without fearing arbitrary constraints imposed on them.

Call HomePromise now at 800-720-0250

Conclusion

Understanding multiple VA loans can help you make better choices. This is especially important when thinking about getting multiple loans. By understanding these loans, you can maximize your benefits.

While there are certain restrictions in place, having two or more VA loans at once is still possible. You must meet all of the requirements laid out by the Department of Veterans Affairs. So, give HomePromise a call at 800-720-0250 to find out more!