Having Multiple VA Loans in Arizona – It Can Be Done!

VA Mortgage Lender in Phoenix Arizona

PHOENIX ARIZONA VA BUYERS CAN HAVE MORE THAN 1 VA LOAN

My team and I recently closed a VA loan for a veteran client of mine for the purchase of a home in Mesa, Arizona.  His name was Tonni.  Tonni already owned a property in the midwest that he currently has a 30 year fixed VA mortgage on.  When he was referred to me from his Real Estate agent he automatically assumed that he had to use an FHA loan to buy his new home in Arizona based on the fact that he thought he had “used up” his VA mortgage benefits.  As an Arizona VA Lender it is my job to help my clients understand what loan products fit their goals and which mortgage is the most financially sound for them.  In this case, that loan product for Tonni was another VA loan.

Please feel free to visit the VA’s official website – http://www.va.gov/

Check MARICOPA COUNTY ARIZONA VA LOAN limits and limits in your area – click HERE

To his surprise, Tonni was 100% eligible and approved for a second ( and simultaneous if you will ) VA mortgage.   To qualify him I used something that VA offers their veterans called “bonus entitlement.”  Bonus entitlement is something veterans can tap into once their regular or “basic entitlement” has been used up.  Basic entitlement is maxed out at $36,000.  This is the amount that VA will insure a veteran for on a new mortgage loan under basic entitlement.  Already having a VA loan or having a foreclosure on a previous VA mortgage is what causes a veterans basic entitlement to dry up.  At that point, VA borrowers typically think they have to go hunting for an alternative financing source.  Not so!

HOW TO OBTAIN MULTIPLE VA MORTGAGES IN ARIZONA

Let’s say a Veteran has a VA loan on a property in New York (or for that matter in North Phoenix, Arizona) and they want to buy a new primary residence and take advantage of the 0% down payment and the no mortgage insurance benefits that VA financing offers.  No matter where the veterans other home is (Arizona or New York) that veteran can tap into their bonus entitlement to purchase a new home using a VA mortgage.  This is completely different from how FHA works.  Click on this link – ARIZONA FHA MORTGAGE RULES – to find out how FHA views having multiple FHA loans.    The veteran would have to accomplish 3 things:

1. Qualify for a new VA mortgage per VA loan guidelines (credit, income, debt to income ratio etc…)
2. Document why the new home should be considered the veteran’s new primary residence (closer to work, larger home, more bedrooms etc…)
3. Borrow at least $144,000 on a new VA loan using bonus entitlement (this is a floor/ minimum loan amount for Maricopa County Arizona)

WHY A MINIMUM LOAN AMOUNT FOR A 2nd ARIZONA VA MORTGAGE?

VA sets of sort a counter intuitive minimum loan amount requirement for VA borrowers purchasing a home using a 2nd VA loan.  As long as they meet all 3 criteria including the minimum loan amount their Arizona VA mortgage lender will have no problem giving the veteran an additional VA loan!   Most people think of a maximum loan amount when they think about a lender qualifying them.  For example, a lender will typically say “you can go up to $xxx,xxx.”   That happens here too.  I have had cases where the veteran applying for a second VA loan only qualifies for $155,000 on the high-end.  You can only imagine how excited their Realtor was when they had to find a home in Phoenix above $144,000 but at or below $155,000.  Hey, think of it this way – it effectively narrowed down the search criteria!

Last  but not least, I want to make sure we are not confusing this with subsequent usage.  This article is simply addressing the simultaneous usage of a VA mortgage meaning a veteran borrower having more than one VA loan AT THE SAME TIME or a veteran who has used their basic entitlement up due to foreclosure etc…  Veterans that have had VA loans in the past but have paid them off will have fully restored their basic entitlement (unless some other strange circumstance exists. A borrower applying for a subsequent Arizona VA mortgage will not need to worry about bonus entitlement if they do not currently have an existing VA mortgage.

Click HERE to apply now to see if you are approved for a VA mortgage

Please let me know if you have any questions.

By Jeremy House
Google
Phoenix Arizona VA Mortgage Lender

 

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

Trackbacks

  1. […] basic entitlement left OR they must utilize what VA calls “bonus entitlement.”  Click HERE for an article I wrote that goes even deeper in this […]

  2. […] up as less than $36,000 on their Certificate of Eligibility they may still qualify using their BONUS ENTITLEMENT.  If you are interested in ordering your own VA Certificate of Eligibility you may do so by […]

  3. […] to finance a home using a VA loan have the benefit of tapping something called “Bonus Entitlement” in order to help them purchase a home using a VA mortgage.   Bonus Entitlement is used when […]

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