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.
- You must have sufficient VA Eligibility
- You must qualify for both mortgage payments
- 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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