Can I Take Out More Than One VA Loan?

The short answer to the question “How many Idaho VA loans can I have?” is that there is no limit on the amount of times eligible veterans are allowed to use their VA loan benefits.

This answer often surprises veteran borrowers who have used the program before.

As you are probably well aware, a Idaho VA loan offers many benefits unavailable with Idaho conventional loans.

In many ways, the procedure for getting a second (or third, or fourth…) VA loan is similar to obtaining the initial home financing.

First, veterans must be able to show that they satisfy the basic eligibility rules mandated by the U.S. Department of Veterans Affairs. The eligibility requirements can be found at the following Department of Veterans Affairs General Rules of Eligibility website.

Second, the Idaho VA loan has to be received through a lender that has been approved by the U.S. Department of Veterans Affairs. It is important to check with lenders prior to starting to ensure that they are qualified to provide an Idaho VA mortgage.

Third, the VA will analyze your mortgage application including your payment history on your previous loan to see if you have a history of paying your mortgage on time or have gone into default at some point.

The VA loses money veteran borrowers go into default, which means they are essentially doing a cost analysis on you to decide whether or not to grant you another VA loan. In addition if the VA suffered a loss on a previous loan you will be required to repay it before having your eligibility fully restored.

If you currently have an Idaho VA mortgage, or have had one in the past, then you already know about the required VA funding fee. However, there are differences between what the funding fees are for first-time Idaho VA loan borrowers and subsequent borrowers.

For Idaho VA loans, regular military members are categorized as either a first time user or a subsequent user. For first time users the fee structure is set up as follows:

  • No down payment: 2.15% fee
  • Up to 10% down payment: 1.5% fee
  • More than 10% down payment: 1.25% fee

For subsequent users the fee structure is:

  • No down payment: 3.3% fee
  • Up to 10% down payment: 1.5% fee
  • More than 10% down payment: 1.25% fee

The funding fee requirement for both the Reserves and National Guard members is different than that for the regular military. For first time users, the fee structure is:

  • No down payment: 2.4% fee
  • Up to 10% down payment: 1.75% fee
  • More than 10% down payment: 1.5% fee

For subsequent users the fee structure is:

  • No down payment: 3.3% fee
  • Up to 10% down payment: 1.75% fee
  • More than 10% down payment: 1.5% fee

Basically, the only difference between funding fees for first-time and subsequent Idaho VA loan borrowers is for “no down payment” scenarios.

If you are planning on making a down payment on your subsequent Idaho VA loan, then there will not be any difference from what you would pay for a first-time VA mortgage.

It’s important to understand that you may not hold more than one VA loan at a time. The loan you took out previously must be repaid in full before you will be eligible to apply for a new VA mortgage. If you still own the property but it is no longer financed with a VA loan (either because you refinanced or paid off the mortgage) you may request a one-time exception to have your eligibility restored.

Even if the loan was assumed by another party, the loan must either be repaid or if the assumer is eligible for a VA loan, they could transfer their eligibility to the loan.

Frequently Asked Questions About Idaho VA Home Loans:

Primary Benefits of a VA Home Loan:

  • 100% financing
  • No monthly private mortgage insurance is required
  • There is a limitation on buyers closing costs
  • The loan is assumable, subject to VA approval of the assumer’s credit
  • 30 year fixed loan
  • Seller can pay up to 4% of the veterans closing costs and even pay down your debt to help lower your debt-to-income ratio
  • Interest rates are similar to FHA rates
  • You don’t need perfect credit

Who is Eligible for a VA Home Loan?

Veterans with active duty service, that was not dishonorable, during World War II and later periods, are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service.

Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days of active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.

If you have any Questions about how to obtain an Idaho VA Home Loan please feel free to contact us. Our information is below.

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Loan Officer
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
HTTP://FINDYOUAHOMELOAN.COM

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