VA Loan Entitlement on Second Home Process

[Yu Liu]

I was learning the VA Loan Entitlement process and wanted to verify if this is correct or if there's gaps in my research that someone can address and add onto:

From my understanding, if a VA wanted to get a second loan without selling their first home, this is the process:

And if my research is correct, I hope this helps out some of you :)

1. 1. You find out what the existing purchase was and multiply by 25% (has to be over $144K)
   1. Example: Home bought 2 years ago for $325K
   2. Entitlement used/ Entitlement Gurantee = $325K * 25% = $81250
      
      
2. 2. Find their leftover entitlement and see what county they are purchasing
   1. Most county loan limit: $726K (conforming loan limit)
   2. multiple that by 25% = 726K * 25% = $181,500
   3. you subtract that from the entitlement used:
      1. $181,500 - $81,250 = $100,250
         
         
3. 3. You can get the rest of their entitlement by multiplying it by 4
   1. $100,250 * 4 = $401,000
   2. They can buy a house up to $401K and still use 100% of VA entitlements
      
      
4. Bonus: If they want to buy a more expensive home, they have to put 25% down on the difference of the home and the entitlement
   1. Example: Seller wants to buy a $601,000 house
   2. $601,000 - $401,000 = $200,000 (difference)
   3. Down payment = $200,000 * 25% = $50K
   4. % down on home = $50K/ $600K = 8.3% down payment