VA 2nd Tier Entitlement

2nd tier entitlement is where you use your VA benefits for a 2nd time concurrently. Yes, the VA will allow you to use 2 VA loans at once. Lets take a deeper look at how it works.

There are 3 important things that must happen to use 2nd tier entitlement.

  1. You must have sufficient VA Eligibility
  2. You must qualify for both mortgage payments
  3. The 2nd purchase must be a primary residence over $144,000

Sufficient VA Eligibility

  • First, we will need to look at your Certificate of Eligibility (COE) to determine exactly how much the VA recorded on your current mortgage.
  • Your COE can be obtained here
  • In most cases, I can pull your COE immediately
  • I will use a quick calculator to determine how much remaining eligibility you have without having to put any money down
  • Here is the actual calculator that I use personally VA Calculator quick (2020)
  • You can go over the maximum allowable however, you will need to put down 25% of the difference between your max VA loan guarantee and the sales price.

You must qualify for both mortgages

  • Only a full mortgage loan application will determine if you will qualify for 2 mortgages or not
  • You can apply for a VA loan online now here (takes 5-10 minutes)
  • The textbook answer is your total debts including the new mortgage do not need to be over 45% of your income.
  • Higher debts are allowes if you have good credit/assets in the bank
  • You can use rental income from your current house if you are converting it to a rental.
  • Stipulations apply

Contact us today to determine if you will qualify for 2nd Tier Entitlement.

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