Two VA Loans At The Same Time - Secondary Entitlement (2020 Updated)

Two VA Loans At The Same Time - Secondary Entitlement (2020 Updated)

– Hey, welcome and welcome
back to the channel. On this video, where I talk all about getting two VA loans at the same time. Yes, it is possible to do so. First of all, I'm Emmett Dempsey, Mortgage Broker and owner
of Treasure Coast Mortgage here in Port St. Lucie. I'm also a US Army Veteran, so VA loans are a special topic of mine. On this channel, we'll talk more about mortgages, the home buying process, and some cool things around Port St. Lucie and the Treasure Coast here in Florida. So if you're moving to Florida, I definitely wanna talk to you. If you're new here on the channel, please think about subscribing. There have been some changes
to the VA mortgage loan, and it was the Blue Water Navy
Vietnam Veterans Act of 2019 that had changed some things mainly if you had full entitlement. So if you've never used
your VA loan before you can buy a house with no maximum.

So you wanna buy a million dollar house with no down payment, you can. So that was one major change. However, there's something
called secondary entitlement, and I did this video once before when I was at my previous company and since then the loan
limits have changed. So I decided to redo this video. I got a lot of calls, a lot
of emails about this topic, about getting two VA
loans at the same time. I wanna go into further detail
about how that's possible. So, you may be a Veteran, have a VA loan, you're moving, or even if you're in the same town and you wanna buy something else, or build or do something
but you don't wanna get rid of that property. You might have bought
it low and a cash flows at especially at a great rate and so you might wanna keep it. So how do you buy a second property with little out of pocket? Well, the VA is a really
good loan program. I'm gonna show exactly how
that's possible here in a minute.

Effectively, there's terms
that you needed to know. Basically it's about entitlement, secondary entitlement and all that stuff. So when you have your full
entitlement of 36,000, times that by four that's 144,000. So you might see that
number around the internet, or I need it to be more than 144,000 that's because VA will
guarantee 25% against loss. That's it's insured loan, that's why the rates are so good, 'cause VA will ensure against default. So that number, times
four 25% is how we arrive at a lot of these things. But in essence, it's really based off your county loan limit and they're set, every
year or so by the FHFA and the currently it's 510,400
here in St. Lucie County, in Florida, where I'm at and that's the same for most
counties throughout America.

So really it all depends
on how much entitlement you have to have charges against you. If you had applied for a closure, it's really an individual
case so definitely, coming in case by case to
see what you qualify for, but really it's essentially 510,400, especially the total
loan that you can have. So if you bought a property for 310,400, you can do another $200,000 house. That's really, and that's
how you arrive there and then you'll see in
it the calculations, if you live in a high cost County, especially, like in Virginia, California, you can buy even more property. So let's go ahead and take a look and go into a detailed explanation of the VA secondary
entitlement to buy two homes at the same time.

Here we go. Welcome to my handy dandy
little Excel spreadsheet, and definitely an Excel
nerd for about everything. So basically what we have
here is a calculation of how to calculate secondary entitlement, how much house you can buy
with your second VA loan should you choose to do so,
I'm going to that calculation. Now, as I said I mentioned before it all starts with the County Loan Limit. So in most Counties in the
country in 2020 it's 510,400. I'm going to go into a Jumbo territory, like in certain areas of Virginia. I know when I was in the
army I spend a lot of time in Virginia at Fort Lee, I think there's like nine
high cost counties there some kinds of California, et cetera, that are high cost, and I'm
going to go into those as well.

2nd va loan

So, it all starts with
your basic entitlement and then there's what's called
your secondary entitlement and bonus entitlement
you might hear it called and you kind of back into this number. If you can kinda look at the calculations, it's 510,400 divide that by four that 25% guarantee thing again, and then this is basically
your total entitlement minus your basic entitlement
which never changes. So this secondary
entitlement number can change from year to year. So let's say that you
bought a house for $275,000. So you're charged 68,750 in entitlement and again, that's that four number again so you divide it by four
that's the entitlement charge minus this number 127, 600, minus that equals 58,850
remaining times four again, and you end up with a
maximum purchase price for a second home with no
down payment of 235,400. And if you kind of look at it's basically that plus that equals County loan limit. It's basically a good rule of thumb, but VA likes to complicate
things and do times four minus four, 25%, et cetera, but you can kind of get to get an idea now for your new home, this tells you basically what
the maximum loan purchase price would be, maximum loan.

So let's say you wanna buy
another $275,000 house. So the max price is basically that. And so the difference is 39,600. So do you have to come up with that? No, because the VA,
again, it's a great loan, You only have to go at
25% of the difference. So basically you have to
do a $9,900 down payment, and now that this loan just so you know, includes the funding fee. Now, if you're not more than 10% disabled, it's a pretty penny. I know for first time it mirrors 2.3% for subsequent use is 3.3% it's finance but it's
definitely a hefty fee, especially if you go up in purchase price. So you kinda have to take
that into consideration as far as what you can do, and I'll have to digest
this for simplicity. Now, that's pretty damn good. Basically, compare that
to FHA and conventional, so tuning 275,000 purchase price, 3.5% down is 9,625, 5% down on a second home or on
a secondary, for conventional that's, the minimum is
5% down, that's 13,000. Now, both of these
options they're gonna have mortgage insurance VA has
no mortgage insurance. So that's why VA is an outstanding loan.

So let's go to another example, you can do a Google search
for FHFA kind of loan limits, but this is for Virginia and here's some high cost Counties So 765,600, so that's one
of the highest ones I see. So let's do 765,600 You can see it kind of automatically
changes all this stuff, and basically that 275
you can buy that note with no down payment. So you can buy another $490,000 house, with no down payments. Let's just say you did
a $400,000 house before, you can buy another 365 house
and you wanna buy another, $400,000 house. This is kind of how I
come up with those numbers to make sure that we're telling
you the good information, but check the County Loan
Limit within your state and just a rule of thumb is basically these two purchase prices got, they add up to your County loan limit, but it's definitely,
you can get two VA loans at the same time. You buy another primary
bought another property went normal with the VA. It's definitely awesome. Welcome back. Hope it was informative. Look at it how you can get
two VA loans at the same time, I definitely I've used myself.

I've counseled several
Veterans to do the same. So it's definitely a great
use of your VA benefit if you're a veteran service country again, thank you for your
service to all those veterans out there. Again, if you want your own
personalized consultation, definitely give me a call,
go to dempseymortgage.com If you want your own personalized analysis about how to buy another
property with a VA loan. I wanna thank you so much for watching and I'll see you guys on the next one..

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