Ray Heinson is an accomplished real estate investor and suggest these resources for FHA Home Loanss and to find VA Home Mortgage Lenders from trusted lenders in your area.
A majority of loan applicants for VA Loans question if they can get additional loans under the VA Loan Guaranty Program. The answer is yes, you can use your VA loan as many times as you necessary when you have the entitlement. Entitlement is available to those who are eligible for VA Home loans. The amount a veteran is eligible for varies. However, the rule of thumb is a veteran is able to get a VA home loan of up to a maximum of four times the amount of his or her available entitlement.
VA loan entitlements are available in a couple of ways: basic and bonus. Firstly, every veteran who is eligible has a basic entitlement of $36,000 for home loans up to $144,000 or lower and a bonus entitlement minimum of $68,250 for loans over $144,000. The way to calculate a bonus entitlement is taking the yearly Freddie Mac conforming loan limit for the county in where you are a resident, multiplying that by 25% and then subtracting the basic entitlement of $36,000. In 2009, a majority of the counties have a maximum loan limit of $417,000, while some locations have higher limits.
The method of obtaining multiple VA mortgages can be a confusing topic. Although having multiple VA loans at one time is unusual, it is possible. There are specific cases whereby a veteran may have maxed out all of their basic entitlement, but still have their bonus entitlement balance to buy a home. As an example, an applicant may have an open VA loan of $144,000, and continue to have bonus entitlement of $68,250 at their disposal. Now the applicant can get a mortgage ranging from $144,000 up to $273,000 with just their bonus entitlement.
In the case when the property is in a county where the maximum loan limits is above $417,000, the bonus entitlements become greater than $68,250 based on 25% of the difference in the loan maximums less $144,000. Obviously, an eligible veteran would need to provide evidence of their ability to pay back the loan.
The VA guarantees 25% of every extra loan amount above $144,000 up to the county limit for each VA-eligible home loan applicant. There are multiple aspects to be taken into consideration such as the sales price, county loan limits, along with the veteran's income and credit history. When a borrower goes above their entitlement, a down payment is customarily required. This happens to be a case where it is best to look at other mortgage choices than just the VA loan program.
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