How to Get Multiple VA Loans

VA home loans are mortgage loans guaranteed by the United States Government through the Department of Veterans Affairs. The basic idea behind the VA loan program is to give home financing to veterans without their having to make any down payments.

Basic Entitlement for the Loan

Veterans have certain entitlements that allow them to avail of loans. The basic entitlement of $36,000 allows the veteran to get a loan of $144,000. There is also a bonus entitlement of $68,250, which entitles him or her to additional amounts. So in theory, if a veteran has availed of a loan of $144,000 against the basic entitlement, there is still the uncommitted bonus entitlement that could be used to get another loan. This way the loan amount can be increased by $273,000.

Knowing the Rules

As a matter of fact, as the rules stand, the veteran can avail of any number of loans as long as he is within the basic and bonus entitlements. The rules state that a veteran is entitled to up to four times the amounts available in his or her uncommitted entitlement. The VA administration provides guarantees for such loans. 

Getting multiple VA loans can be tricky, though. Having more than one VA loan at a time is rare, but it is possible. There are certain circumstances under which a veteran may have used up his or her basic entitlement but still have a bonus entitlement available to purchase a home using the program. For instance, a borrower might have an open VA loan of $144,000 but still have the bonus entitlement of $68,250 intact.  In this scenario, the borrower could get a loan over $144,000 and up to $273,000 using bonus entitlement alone. 

Getting to Know the Basic Requisites

Bonus entitlements are, however, flexible and are calculated depending on the county in which the veteran resides. The Federal Home Loan Mortgage Corporation (FHLMC or, as it is commonly called, Freddie Mac) is a government sponsored enterprise created with the idea of expanding the secondary market for mortgages, and the Freddie Mac conforming loan limit for a county is used for this type of calculation. Whatever the bonus entitlement thus decided, the veteran would have to prove an ability to repay the loan amount before he or she could avail of the loan.

Fulfilling Other Requirements

Loans that are over and above the amounts due under basic entitlement would be guaranteed by the Veterans Administration up to only 25 percent of the additional amount. Veterans opting for multiple loans would have to keep in mind the purchase price and county loan limits for their county. They would also have to show sufficient proof of income and a proper credit rating before any additional loans are guaranteed by the VA.

Another factor that can affect a veteran's ability to receive multiple VA loans is whether the veteran has availed of the Veteran Home Loan Guarantee Program in the past and his or her record in servicing that loan. Entitlements that were used to take the earlier loan can even be restored if the earlier loan has been repaid in full. In case of any foreclosure on earlier properties obtained under this program, the veteran would have to make good all the losses before he can receive a restoration of the entitlements.

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