VA loan - entitlement question

[Kelly McMahon]

Hi everyone,

My husband and I bought our first home with a VA loan which was very nice not to have a down payment. We are looking into buying a second bigger home and renting out the first. Does anyone know any stipulations to this? My realtor said the first step is to see how much entitlement we have left with the VA but we have no idea what this even means! I looked up some info on the VA website but it was very confusing. Can someone explain what this means?

Does anyone know if a) we can rent out a home under a VA loan. b) can we buy a second home with a VA loan c) do we have to refinance the rental to an FHA or other loan type or buy the next house with a FHA or other loan or d) are there tax issues of renting out a VA loan home?

Thank you!