If you are a veteran you can actually have 2 VA loans. You may want two VA loans if you are moving and not selling your current home. Or possibly would like to buy a new home without selling their current home. The calculation to find out if you can have two VA loans can be a little confusing. So, Here are the steps to follow when figuring out if you can have 2 VA loans:
1. Order your Certificate of Eligibility- Your Mortgage Lender can do this for you. It requires you to provide your DD-214 form. If you do not have the DD-214 form, you will want to find it.
2. Your Entitlement- On you Certificate of Eligibility, it will show the remaining balance of your entitlement. The majority of veterans will start with an entitlement of $36,000. So your remaining balance will be less than this amount.
3. Calculate- Next you will want to take the amount of your entitlement that you have used and subtract it from $104,250. So if you used $30,000 of your entitlement, it is $104,250- $30,000=$74,250
4. The Max your 2nd VA loan can be- Take the number from #3, $74,250 and divide it by .25. This will give you the max your new VA loan can be. Which in this example would be $297,000.
The above list gives you the exact step by step process to find out if you can qualify for a 2nd VA mortgage. Keep in mind, this calculation is only to see if you can get a second VA loan. This does not automatically mean you can qualify for a another mortgage, that would be determined on your income, assets, credit score, etc. This calculation for a 2nd VA loan is for loan amounts of $144k and higher. For loans under $144k there is a different calculation.
Granted is a lot of information for a anyone to remember. So bookmark this article and can come back to it when you or a veteran you know needs a 2nd VA mortgage. It is also important to remember this article because many loan officers are under the impression you not have 2 VA loans. Which is just not true. Please call me with any questions.