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Multiple VA Loans? | Use Loan Amount | Use VA COE | VA Funding Fee | VA Eligibility Calculator
Can you have multiple VA loans at the same time?
If you are eligible for the VA home loan benefit and have never used your VA entitlement or if it was fully restored after a previous VA loan was paid in full, you can purchase a new home without any maximum loan limit (as long as you qualify for the total housing payment).
Can you still buy a new home with an existing VA loan on another property or if you have a portion of your entitlement charged due to a previous foreclosure or short sale?
The short answer is YES! But, you will have a limit on how much home you can buy with 100% VA financing. So, how do you determine how high you can go with 100% financing?
Calculate Max Loan Using Original Loan Balance
With an outstanding VA loan/charged entitlement on your VA Certificate of Eligibility (COE), the County Fannie Mae Loan Limit where you are buying your new property will determine your maximum purchase price for VA 100% financing.
If you are buying in Hawaii where the new 2023 County loan limit is $1,089,300, then you’d subtract the original balance of your existing VA loan from $1,089,300. The amount that remains would be your maximum purchase price for 100% VA financing.
For example, if the original VA balance was $389,300 on a home you still own with this VA loan, then you subtract this amount from $1,089,300 to derive $700,000 as the maximum purchase price for 100% VA financing for your new purchase.
You can still purchase a home in excess of your 100% maximum VA purchase price, however, a down payment of 25% of the difference between the purchase price and your 100% VA max purchase price would be required.
Referencing the example above, you would not be limited to a $700,000 purchase price in Hawaii. You can still purchase a home in Hawaii for $800,000 for example, but would need a
down payment of 25% of the difference between $800,000 and $700,000. That $100,000 difference would result in a minimum down payment of $25,000 and you would have a $775,000 VA loan (plus VA Funding Fee, if applicable and described below).
Calculate Max using Entitlement Charged on VA Certificate of Eligibility (COE)
If you use your VA COE to determine your max eligibility for 100% VA financing, you reference the entitlement amount charged. Then, multiply this number by 4 to determine the loan amount at subtract from $1089,300.
The entitlement charged on a VA COE reflects 25% of the loan amount as the VA Guaranty insures 25% of the loan. Therefore, if $36,000 of VA entitlement is charged on your VA COE, then you have $144,000 in used/unavailable loan amount.
Subtract this $144,000 from $1089,300 to derive your maximum purchase price for 100% VA financing as $945,300, in this case.
The VA Funding Fee
NOTE: Your VA funding fee, if applicable, can be financed into the loan above the max loan limit. The VA Funding Fee chart is below:
There are cases where the VA funding fee can be waived entirely. The most common is for all Veterans who receive service connected VA disability compensation and all others who have at least a 10% VA Disability rating. If the VA funding fee is waived, it will be indicated on your VA Certificate of Eligibility.
*Purple Heart recipients will also have their VA funding fee waived. To document this, you just need to provide a certificate or military orders to evidence the receipt of the Purple Heart. For additional guidance, please see VA Circular 29-19-23 or VA Circular 26-19-30 or discuss your particular situation with your lender to see how these updates and changes will impact your VA home purchase.
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