VA Loan Cap Removal Discussion

[Jacob Pereira]

First few questions:

Will the cap removal also remove the possibility of doing a split loan (using part of the benefit on one and another part on another)?

Will there still be a one-time second use option for vacation homes?

Could veterans literally just buy a million dollar fourplex (They exist in my market) and make the government support the risk?

I'd love to hear other questions people have, and especially answers from lenders

[Andrew Postell]

@Jacob Pereira what "Loan Cap" are you referring to exactly? VA Loans do not have a "cap". Once you go over the jumbo loan amount a Veteran can still recieve a loan from the VA. Admittedly, they would need a down payment after jumbo....but it's SUPER low and still one of the best loans you can find at that level.

Likewise, VA loans are not permitted on Vacation Homes. VA loans are ONLY for primary homes. Well, let me rephrase slightly....you can keep your current VA loan ON a home that you are vacating...but you cannot use a VA loan to PURCHASE a second home nor an investment property.

The "second use" option is just when you use VA loans more than once you pay a higher funding fee. If you are 100% disabled, you don't have a fee at all. You can use VA loans over and over. You can also have 2 VA loans at once under certain circumstances.

And yes, a Veteran can certainly purchase a million dollar fourplex with a VA loan. No PMI on it too. So it's really a great loan.