VA loans are offered to veterans and active service members to give them a chance at owning homes of their own. However, one thing that most active service members have in common is that they tend to travel around a lot due to their job. What happens to their home if they are permanently reassigned to a different place? Will they be able to get a second VA loan for a new home in their new neighborhood?
If you have stumbled upon this article, chances are this is the current situation you are in. You have a home that you’re settled into, but you’ve been called to move a few states over. What do you do?
This blog post will help you figure out how the process of getting a new VA loan works and what you can do.
I Am Moving! Can I Get Another VA Loan for a New Home?
Before getting into the nitty gritty, let’s answer this question in short: you can’t get a brand new VA loan, but you can shift the remainder of your entitlement to another property while retaining ownership of your current home.e
Here’s how it works:
Use the Remaining Entitlement
There are two main parts of a VA loan: the basic loan and the bonus. Most commonly, the basic part of the loan will come up to around $36,000. The bonus is a second tier part of the loan that will come up to around $101, 062. All in all, the entire benefit for VA loans will come to a grand total of $137,062.
Chances are, even if you took out a mortgage for your current home, you will only have used a portion of your entitlement. You will still have access to the remainder of the amount for you to apply for a new mortgage in the place where you will relocate to.
What happens to my current home?
Relocating and purchasing a new home doesn’t make your old one go away. You can still maintain ownership of your current home and purchase a new one with your remaining entitlement.
If you choose to go this route, you will be able to have your current home rented out to be able to help with expenses and so that you do not have to pay for more than one mortgage. This will not contribute to the intent when you file for a second home loan but it will certainly help you from a financial standpoint.
If you have any questions about taking out a second VA loan, it is a good idea to approach a mortgage broker or loan officer. These professionals will be able to help you figure out what your current financial situation is and how much entitlement you have left after your first VA loan. Mortgage loan specialists at these firms will also be able to help you apply for your second mortgage loan and look for properties in your new area.
If you need help as you apply for a mortgage loan, contact Frontline Financial! We have made it our priority to help veterans in securing good-quality homes. Contact us today and let us help you get that mortgage you need!