The VA loan program is designed to provide an affordable pathway to homeownership for active service members and military veterans. But when it comes to VA home loans, is it possible to own more than one property?
Maybe you’re active-duty military and have been recently assigned to a new post. Or perhaps, like a lot of folks, you split your time between two different areas, living in one during the summer and another during the winter. Whatever the reason, you’re curious to know, can someone own more than one home with a VA loan? Here’s what you need to know.
The Basics of VA Home Loans
VA home loans, backed by the U.S. Department of Veterans Affairs, are designed to help veterans, active-duty service members, and eligible surviving spouses purchase or refinance homes with favorable terms. These loans are known for their competitive interest rates, no down payment requirement, and no private mortgage insurance (PMI).
Can I Use My VA Loan Benefits for Multiple Properties?
Yes, you can use your VA home loan benefit to purchase another property in addition to your first residence. However, there are limits. Generally speaking, VA loans are supposed to be used to purchase a primary residence. That being said, depending on the situation, you may be able to have more than one VA loan at one time.
Owning Multiple Properties with VA Loans
When considering multiple properties with VA home loans, it’s important to evaluate factors like your entitlement, loan limits, and eligibility. While VA loans allow for additional property ownership in some cases, factors like entitlement, occupancy, and location-based loan limits need careful consideration. Our experts can guide you through this process effectively.
First Property Purchase
When you use a VA home loan to buy your first property, there is no limitation on the type of property you can buy. Whether it’s a single-family home, condominium, or even a multi-unit property, you can leverage your VA benefits, so long as you meet the requirements mandated by your lender and the VA.
Subsequent Property Purchases
So, what if you already own a home financed with a VA loan and want to buy another? The VA allows additional property ownership in certain cases, but there are some important considerations:
- You must have sufficient entitlement: The VA provides each eligible borrower with a specific amount of entitlement, which may limit the total loan amount you can guarantee. If you’ve used a portion of your entitlement on your first property, it might impact your ability to obtain another VA loan.
- Loan limits apply: There are limits on the size of VA loans, which can vary depending on the location of the property. Make sure to check the VA loan limits in the area where you plan to purchase the second property.
- Determining your eligibility: If you have enough remaining entitlement, you may be able to use it for your second property purchase. It’s important to consult with a mortgage expert to determine your eligibility. You’ll need to qualify based on your income, credit score, and total debt-to-income ratios for each additional loan. Higher standards may apply compared to your first VA loan.
Contact Our Expert Team
Ready to explore your options for purchasing multiple properties? Reach out to Mortgage Solutions Financial today to discuss VA home loans. We look forward to helping you reach your real estate goals!