VA Entitlement and Using a Second VA Loan

The concept in plain terms

Entitlement is not a dollar limit on what you can borrow. It determines how much VA guarantee is available, which in turn determines how much can be financed without a down payment. When some entitlement is already in use, the calculation shifts and a partial down payment may be required.

When entitlement comes back

• The VA loan is paid off, typically through sale or refinance into another program.
• A qualified assumption occurs with substitution of entitlement by an eligible veteran.
• A one time restoration is used in specific circumstances where the loan is paid off but the property is retained.

Keeping the first home as a rental

This is one of the most common questions in a relocation. It is often possible, but two things must work: the remaining entitlement math, and qualification with both housing payments, subject to how rental income on the departing residence is treated by the program.

Relocating and thinking about keeping the current house? Bring me the payoff and the likely rent, and I will run both scenarios before you list or lease it.

Educational purposes only. Refinance and VA loan guidelines vary by program, borrower circumstances, property type, entitlement status, documentation and lender requirements. All financing is subject to application, verification, applicable program guidelines and underwriting approval. Not a commitment to lend. Manny Oloyede | Mortgage Broker | NMLS 1824463 | Ultimate Mortgage Brokers LLC. Equal Housing Opportunity.