Dual military using separate VA Loans

[Roemeo Barnette]

I have a question in regards to me and my wife using our VA loans. So my question is since we are both active duty aren’t we both entitled to our VA LOANS “SEPARATELY” ? I can buy a piece of property and my spouse should be able to do the same regardless if we are married was my understanding. 1) I want to buy an investment property with my va loan (yes I know I have to occupy the property for up to 6 months to a year) 2) She wants to buy a house with hersI went through my same mortgage company where I bought my previous property and he said it would be hard to explain that to the lenders since you guys aren’t getting divorced or separated... so I’m just a little confused as to why that would matter if we both are entitled to a va loan separately? 3) Also would it make it better if I used an FHA loan to buy my investment property? Thanks in advance BP !

[Alexandra Lowry]

@Roemeo Barnette Yes you should be able to do this. You do have to live in both properties as your primary residence so if you are trying to buy both at the same time this wouldnt be possible unless you and your wife were separated and living in different primary residences but if sufficient time has passed since the first purchase then you could buy another property with her VA eligibility. My husband and I used two VA loans with zero problems! Bought one house with a VA which we lived in for 1.5 years, then rented it out and bought a second house with the other VA. Both houses were in the same city and no one we worked with questioned it. The main benefit for VA over an FHA loan is 0% down required and you don’t pay monthly mortgage insurance, which can add up to quite a bit in the long run. If I were you I would definitely recommend looking around more to see if any of your local lenders advertise as being military friendly or if they specialize in VA loans. Personally, I have utilized VA and conventional loans over FHA, but you can run your numbers with different loan scenarios and choose what is best for you.

[Matt K.]

I forget off top of my head for VA but pretty sure it's for your primary residence. That's probably why it's hard to explain how a married couple who's not separated has two primary residences.

FHA typically requires a year in the property as your primary then you can get another and move. But most no/low down loans won't cashflow and might even be neagtive..

[Roemeo Barnette]

@Alexandra Lowry Thanks for your response and putting in perspective for me, we are for sure going to use the VA loan overall.

[Roemeo Barnette]

@Matt K. Thanks for your response, for an FHA loan there is a stipulation in there for me being active duty that I don’t have to make it my primary residence. However it is case by case basis. I’m just trying to do the right thing and get the most out of the route I choose. Thanks again

[Melissa Anderson]

@Roemeo Barnette my fiancé and I are trying to do the same thing with our entitlements; a little easier for us as we are not yet married but similar issues. I believe the problem is that they assume since you are married you should have the same primary residence; perhaps going to different banks would alleviate this issue? You are both entitled to your full entitlement amount (somewhere around $400k+ depending on the area) and you can reuse it or have multiple loans at a time up to that value as long as each is your primary residence for a year.

[Roemeo Barnette]

@Melissa Anderson yea that assumption is valid but people can be married and live separately.. it’s very common. If I were you two I would purchase prior to getting married otherwise you will be going through the same issue. Thanks for your response

[Matt K.]

Originally posted by @Roemeo Barnette:

@Matt K. Thanks for your response, for an FHA loan there is a stipulation in there for me being active duty that I don’t have to make it my primary residence. However it is case by case basis. I’m just trying to do the right thing and get the most out of the route I choose. Thanks again

 If you don't make it your primary, then your spouse does or it has to be like 100 miles from your duty station w/ intent to retire in it.

But also just another FYI, both FHA and VA are huge pains for the buyer/seller. They are both slow process, going to be much more stringent on the inspections and can come off as a weak offer to many sellers. Plus, unless you did 203k then you basically have to get a extremely well kept house that probably won't really give you the opportunity to force appreciation...

[Zack Karp]

@Roemeo Barnette it comes down to intent and execution. If you are both going to actually live in separate houses, and do so for at least 1 year, then you can absolutely each use your own VA benefit. If you are just trying to buy 2 properties simultaneously with $0 down and not actually live in one of them, well then that's mortgage fraud. It will be hard to convince an underwriter that you are married living separately, although not impossible with the right circumstances. I have worked with some strange family dynamics in my career...

Best of luck, and TYFYS!

[Roemeo Barnette]

@Zack Karp thanks for your response. I understand everything that you are saying, and figured that was the was reason but at the same time you ( NOT YOU) can’t assume I’m going to commit mortgage fraud when in fact I am actually going to occupy the home. It was just nope you are married so it’s one or the other lol.

[Kevin Hunter]

@Roemeo Barnette, just to make it very simple. You and your wife are both entitled to utilize a VA loan for a home purchase due to the fact that you have both served on active duty and meet all the requirements to qualify. The VA home loan program requires you to plan to occupy the purchased home for a minimum of one year.

I suggest you, only you, buy your first property utilizing your VA home loan entitlement. Then occupy the house for a minimum of one year. When you are ready to move, your wife secure the next home mortgage utilizing her VA home loan benefit.

If your mortgage broker is trying to tell you that you and your wife both need to forfeit the VA loan eligibility on this one purchase, then it is time for you to get a new mortgage broker, immediately.

There are a lot more details regarding the VA loan program that you can get very smart on. For example, total VA loan price eligibility. If you purchase a property with a VA loan, but it doesn't cost as much as the maximum eligibility price in that area, than you can borrow again at a later time on another property up to that maximum.......another, If you move after the one year and want to apply for a new VA loan, you can refinance to a traditional loan on your first property and you free up the entire VA loan eligibility. You will pay an increased funding fee due to the subsequent VA loan, but you still don't pay a down payment, etc.....

Although I am pretty savy, I am still not an expert so do all your research etc..  military.com has a lot of good information regarding the program.

Good luck with all!