Using A VA Loan

[Jeremy Sanders]

If I turn my home that I had financed through a VA Loan to into a rental property, will it allow me to become eligible to apply for a new VA Loan (or) Will I have to wait until the Property is paid off in full?

[Albert Bui]

Originally posted by @Matthew Martin:

I'm almost positive you can only use the VA loan for your primary residence. It is a benefit allotted to thank/help veterans for their service. And someone can be use as many VA loans as they want as long as it has been 2 years since the sale of the primary home. Again, I'm PRETTY sure that the 2 year clock doesn't begin until the old VA loan is paid off or refinanced by a conventional loan. The system will see that you have a loan and won't allow another. I used my VA loan to buy my primary residence a year and a half ago, and got most of this information while I was in the loan process. The cap is also 415K. Hope this helps. It would be beneficial to trust the information that you receive (even from me), but VERIFY. Go to the VA website and that will have all the current information. Good Luck.

This is correct it can only be used for primary residences and you can use it again again as long as you free up your entitlement from the previous use. The entitle does slowly come back and your second use may be possible but may not be fully 0% down like the first use. Each county in a state can have different loan limits. Orange County and Los Angeles counties are 687,500 currently max loan limit. If a Va buyer wanted to go over this limit they would have to come in with 25% of the difference so on a 900k purchase the difference between 687,500 is 212,500 and 25% of this amount is 53,125 dollars. The veteran would only need 53,125 dollars to purchase a 900k home in LA/OC which amounts to about 6% down payment Jumbo loan.

When paying off a prior VA property its crucial to make sure the VA admin is notified so that the entitlement is freed up. Sometimes there are disconnects with reissuing the entitlement back to the veteran but nothing that cannot be fixed with proper documentation. Hope that helps.