Posted on Sep 29, 2016
Here is another one from the old "things I've learned along the way" file. It is possible to have multiple VA loans?
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Posted in these groups: 
Department of Veterans Affairs (VA)
Benefits
Department of Veterans Affairs (VA) Benefits
Posted 9 y ago
Responses: 10
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yes it is possible. it is called a Second-Tier Entitlement. it is a complicated equation to figure out how much you would be entitled to borrow and a down payment could be required depending on the county loan limit, how much entitlement you have used, and how much your new house will cost. Google Second-Tier Entitlement and you will get some detailed explanations of how to figure out the money.
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SFC Christopher Perry
CW4 Anthoney Lowry Just the answer I was looking for and the one that sadly, very few people know. The fun part of this is finding a loan officer competent enough to pull it off correctly.
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You can have multiple if you don't exceed the maximum amount VA will loan to you. Then again if your spouse is eligible for one, that could happen.
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"VA Loan" is a misnomer. VA doesn't loan money. The VA however backs up a single primary residence loan which a lending institution issues. Since a hunk of the risk is picked up by the VA, rates are usually lower but that's governed more by your credit rating. There are also more restrictions on the nature of the property (water systems, no mobile homes, etc.). The added benefit of zero down and full value coverage has helped many a SM. You can have as many VA backed loans as you want/need, but only one at a time and only for your primary residence. What you should be looking for is when the interest rates drop with commercial being a better deal, doing a refi, and then moving on from there. Then when you want to do your next big thing, the VA backed loan eligibility is there for you. I used the VA backing three times in my life and commercial refi twice. I'm in my final home now and am glad the VA stuff was there for me.
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SFC Christopher Perry
You are correct about the misnomer. Alas this is what most people know it as, hence my phasing it that way. Well that and the word count restriction on a question.
However, the second part of your statement is inaccurate. What is known as a Second-Tier Entitlement allows one to purchase a second home which is backed by the VA and falls under all of their rules. As long as you have not exceeded your total entitlement under the VA that is.
However, the second part of your statement is inaccurate. What is known as a Second-Tier Entitlement allows one to purchase a second home which is backed by the VA and falls under all of their rules. As long as you have not exceeded your total entitlement under the VA that is.
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SFC Christopher Perry
CAPT Kevin B. - Understood, we only ended up in the situation that necessitated the research because of an extremely ugly housing market in Lawton OK. Looks as though we may have to hang onto the investment property for a while now, so it was good for us.
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I've had 5 VA home loans and the one thing is no appraisal result is the same. Some just say the house is worth the offer giving no other info whereas some give you market appraisal saying house is worth no matter what you pay..
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SFC Christopher Perry
We had to walk away from one house in Lawton because they wanted way more than the appraised value. That, I admit, was a first for me.
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MSgt Michael Bischoff
SFC Christopher Perry - I have heard that happens. Sometimes the realtor knows what to expect but I guess that one stumped even them!
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I heard you could, but you had to pay off your previous one first. Can't verify the authenticity of that.
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SFC Christopher Perry
Cpl Justin Goolsby The VA allows for having two VA Loans at the same time, as long as the max entitlement is not exceeded. It is called a Second-Tier Entitlement.
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Cpl Justin Goolsby
Good to know. Thanks for the knowledge. I only recently started using my first VA loan.
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If you are talking about home loans, no. You have to completely pay off one before you can have another.
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SFC Christopher Perry
This, believe it or not, is a myth and the reason for the question. If you have not used all of your VA home loan entitlement you can finance a second home as long as it does not exceed your full entitlement.
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SGM Patrick Kirby
Follow up: just recently went thru the refinancing process with the VA; one of many forms was one certifying the home being refinanced was my primary residence. So, is the primary residence a bank:mortgage company or VA requirement?
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SFC Christopher Perry
SGM Patrick Kirby - Interesting little twist you found there. Never really thought about that part of it. The second VA backed loan was in fact for our primary residence. Therefore, when answering that particular question the answer was in the affirmative.
I suppose if we ever decided to refinance the investment property, that would change the answer. Thank goodness the rate is so darn low, that this will most likely never happen.
I suppose if we ever decided to refinance the investment property, that would change the answer. Thank goodness the rate is so darn low, that this will most likely never happen.
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SFC (Join to see)
You can ....but like you said primary residence. My friend PCS. And when he did he rented out his old residence(until he could sell it)..pcsed to a new location and received a new VA Loan for his new primary residence. This way you can pertty much buy a house wherever you pcs to, and sell your old one.
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I let this hang out there a while unintentionally. It has been a rather busy day in my world. However, now I am really glad I did. The conversations were far more interesting this way. Hopefully, the thread will help folks better understand the benefit available to them.
I admit that for a good part of my career I was unaware of ins and outs of the VA backed home loan. I had actually used it three times prior to finding out the real story. I feel inclined to admit that it was my wife that moved past the myth and did the research. This was purely to to the fact that the market in Lawton OK was so bad when we left that selling the little home we had there was not a viable option.
I admit that for a good part of my career I was unaware of ins and outs of the VA backed home loan. I had actually used it three times prior to finding out the real story. I feel inclined to admit that it was my wife that moved past the myth and did the research. This was purely to to the fact that the market in Lawton OK was so bad when we left that selling the little home we had there was not a viable option.
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You ended what seems to be a statement with a question mark. Are you asking if it is possible, or are you telling me that it is? My past experience is you can only have one VA home loan open at a time.
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SFC Christopher Perry
SPC Jesse O My question was "It is possible to have multiple VA loans?" It should actually read, "Is it possible to have two home loans backed by the VA simultaneously?" Either way it is a question, but the word count when asking a question was prohibitive.
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SFC Christopher Perry
PV2 (Join to see) Cpl Isaac Cruz The VA allows for having two VA Loans at the same time, as long as the max entitlement is not exceeded. It is called a Second-Tier Entitlement. That being said, finding a loan officer competent enough to pull it off can be a bit of a challenge.
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