The VA guidelines only allows VA borrowers to have one VA Loan at a time. But if you have used your VA eligibility in the past, and have since sold the home or the loan has been assumed, you can re-use your VA Loan eligibility and purchase another property with a VA Loan.
To reinstate your previously used VA Loan eligibility:
- The property must have been sold or the loan paid off in full (either through refinancing or paying off the loan balance)
- Your VA Loan was assumed by another VA eligible borrower who then substituted their VA entitlement thus freeing up yours
So for example if you have a house that you may have lived in previously and acquired with a VA Loan, but that house is now a rental, you would not be able to reinstate your VA Loan eligibility until you either sold that house, refinanced it, paid it off or had another VA borrower assume the loan.
Additionally, the VA Funding Fee is different when a VA borrower uses their VA eligibility subsequent times. For a first time user with zero down the VA Funding Fee is 2.15% of the loan amount. For subsequent uses with zero down the VA funding fee is 3.3%. Remember the VA funding fee is waived for any veterans or active military receiving service related disability pay. Also, if you refinance a VA loan to another VA loan, the funding fee is only .5%.
Regards,
Rob Chomentowski
Sr. Loan Officer (and VA Loan specialist)
858-922-7899
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