Veterans Can Now Purchase A Second Home
Many first time borrowers do not realize that once they have a VA loan they are eligible to purchase another home with a VA loan. Just because you have a prior VA loan, it does not necessarily mean that you are unable to purchase a second home using a VA loan.
Home Ownership Perks
There are definitely circumstances where a person with a prior VA loan can qualify for a second VA loan. There are certain criteria in doing this, but it is indeed possible. One situation in which a military individual may qualify for a second VA loan is when they have paid off their prior VA loan and disposed of the property that was bought with their prior VA loan. This will allow the borrower to apply for an additional VA loan with no problems.
The applicant will simply follow the VA requirements and guidelines to apply for a VA loan. Prior VA loan holders may also get a second VA loan if they have paid off their current home that was purchased with a VA loan and still own the property. Unlike the other circumstance, the applicant is only allowed this option one time.
A Second VA Loan
Lastly, if a person has a prior VA loan they can restore their eligibility for a second VA loan by assuming their loan. This means that if the person purchasing your home is also a veteran and chooses to assume your loan, you will be able to restore your eligibility and apply for another VA loan. Prior VA loans do not have to hold you back from a second VA loan.
If you have a prior VA loan and want to restore your eligibility, you will need to contact the Department of Veteran Affairs. Upon contacting the department, you will explain to them your circumstances regarding your prior VA loan and the will ask you to fill out Form 26-1880 and submit it to the correct department for restoration of your VA loan eligibility. A veteran may also be asked to provide evidence of the full payment of their current VA loan.
Prior VA loans should not be your decision maker when you decide to sell your current home. You could have the next buyer assume your loan, if they are a veteran as well. If you have already sold your home and have disposed of it, you can apply for a second VA loan. One time only with a prior VA loan, you will be allowed to get a second VA loan if you pay your home in full and still occupy the home. The VA offers its applicants different ways to continue the benefits of a VA loan.