Written by - February 01, 2023
VA loans are an excellent option for veterans or active-duty military members looking to purchase a home. These types of loans are backed by the U.S. Department of Veterans Affairs, making it easier for veterans and active-duty military to obtain a mortgage. One of the biggest questions surrounding VA loans is how many can a borrower have in a lifetime? In short, there is no limit to the number of VA loans a borrower can have. However, there are certain requirements that must be met.
To qualify for VA loans, the borrower must meet specific eligibility requirements set forth by the VA. Some of the requirements include length and type of service, credit score, and debt-to-income ratio. In addition, there is no minimum credit score required to apply for a VA loan, but many lenders typically require a minimum credit score of 620 or higher.
The borrower's VA home loan entitlement is another factor in determining how many VA loans a borrower can obtain. The entitlement is the maximum amount that the VA will guarantee for the loan, and it varies depending on the home's location. In most cases, the entitlement limit is $36,000. However, borrowers can have more than one VA loan at a time if they have enough remaining entitlement.
Second-tier entitlement is another option for veterans who have already used their basic entitlement on a previous VA loan. With second-tier entitlement, veterans can purchase a second home without having to sell their current residence. The maximum amount of second-tier entitlement is typically $144,000.
Another option for obtaining multiple VA loans is using the borrower's remaining entitlement on more than one property. For example, a borrower can use part of their remaining entitlement to purchase a primary residence and use the rest of their entitlement on a vacation home.
If a veteran has paid off their VA loan or sold the property, they can restore their entitlement and be eligible for another VA loan. The process for restoring entitlement varies depending on the borrower's specific situation, but it usually involves filling out a form and providing documentation.
In some cases, having a co-borrower can help veterans and active-duty military members obtain multiple VA loans. If the co-borrower is also eligible for VA loans and has VA entitlement, the two borrowers can pool their entitlements together to obtain a higher loan amount.
For veterans and active-duty military members looking to obtain multiple VA loans, Mortgage Brokers Pro is an excellent option. We have a team of experts experienced in handling VA loans, and we work with borrowers to ensure they meet all eligibility requirements. Our goal is to make the process easy and stress-free, so our clients can focus on finding their dream home.
In conclusion, there is no limit to how many VA loans a borrower can have, but there are certain eligibility requirements that must be met. With the help of Mortgage Brokers Pro , veterans and active-duty military members can obtain multiple VA loans and purchase the homes of their dreams.