Two VA loans, same location. Would it be possible?

[Maxim Lorenz]

Here’s a revised version:

Hi everyone,

To summarize, I’m looking to buy another property in the same zip code, and I’m considering two options:

1. An investment property loan for a fixer-upper, which I won’t be moving into.

2. Using a VA loan for a second property, where I'd move in and rent out my current home.

When I made an offer on a fixer-upper (I didn't win that bid), the loan officer mentioned it might be difficult to convince the underwriter why I'd need another VA loan for a second property in the same area, especially since the new home is almost identical to my current one (same size, age, school district, etc.). Is this true? I meet all the other requirements for a second VA loan. I found another home that's move-in ready, and I'd prefer to use a second VA loan since the rates are much better than those for an investment loan in this case.

For context: I've lived in my current home for over two years, still have VA loan entitlement left (with a down payment), and plan to occupy the second home as my primary residence. The only issue is that the new home is not an upgrade over my current one—everything is quite similar. Will this be a problem with the underwriter?

[Kerry Baird]

I'd reach out to a VA lender and see what they tell you. It looks to me as if you tick all the boxes.