What's a VA Loan?
How Can I Get Two VA Loans?
There are some calculations involved to see how much entitlement the veteran has left. Every veteran typically earns a basic entitlement of $36,000. However, as county loan limits increase, the secondary entitlement for a veteran increases. Most county loan limits are capped at $484,350 for 2019. At 25% that means a veteran would have $121,087 in total entitlement, which includes their basic entitlement and bonus.
Forewarning – the below example does have a few math calculations. We can help you review exactly where you’re at but below is an example calculation.
EXAMPLE: Let’s say a veteran bought a home with 0% down and a loan of $200,000. This would mean that they used up $50,000 of their entitlement, leaving $71,087 for their new home. With that entitlement, the veteran could buy another home up to about $284,348 with 0% down.
However, let’s say this veteran wants to buy a $350,000 home. Can they still use the VA benefit? Yes – but they will need to come up with a down payment. In this case, their down payment would be about $16,413 (25% of the difference between $284,348 and $350,000). This still is an amazing deal that likely is way better than any other conventional loan. It’s less than 5% down with no mortgage insurance, and VA rates are typically lower.