Tuesday, December 24, 2013

Can you have 2 Kentucky VA Loans at the same time?

You can have two Kentucky VA loans open at the same time but you must meet the following requirements to have a second Kentucky VA loan:

The new VA loan must be $144,000 and have the veterans bonus entitlement or sometimes called 2nd Tier VA Loan entitlement available. You will need to contact the VA department to get a new COE or Certificate of Eligibility to see how much VA entitlement you have left if the current VA loan has not been paid and your VA eligibility restored. 
Secondly, the new VA loan is only for owner occupied properties, which means you cannot have more than one VA loan in the same city.The VA loan would be your best option because it requires no down payment and no monthly mortgage insurance. 
             If you had to go FHA, then you are looking at a 3.5% down payment along with a    monthly MI  premium that is fairly steep.The interest rates are close to the same on the VA and FHA loan, with credit  score requirements being centered around the 640 threshold.
Both programs appraisal requirements are pretty much the same and fall in line with most government-sponsored agencies like Fannie Mae, FHA,  and VA.

I guess the question to really ask at this point, can you find a home that is $144,000 or more to your liking, so you can go the VA mortgage route using your 2nd Tier VA loan entitlement?
 If not, and the loan amount is below $144,000, then you are looking at a FHA loan.

Basically it works like this below for your situation on buying a home in Kentucky with using your 2nd tier VA entitlement while having another VA mortgage open:

 For example: Let's just say your Certificate of eligibility (COE) comes back from VA and it shows you have used ***$36,000 of your VA entitlement (just using this as an example) on a prior loan, which may not be restored due to current VA loan is still active and opened. 

 The maximum VA loan limit is $417,000.00 for Kentucky

 $417,000 X 25% = $104,250 Maximum Guaranty for new VA loan
 $104,250 - $36,000** = $68,250 Entitlement Available for new VA loan 
$68,250 X 4 = $273,000 Maximum Loan Amount with 25% Guaranty

 Since the proposed loan amount will be less than $417,000, the lender will receive 25% VA Guaranty on the loan of 273,000. A down payment should not be required.

 Now, the only thing we don't know in this calculation is the VA entitlement used until we get the new COE or Certificate of Eligibility. I am using $36,000 above as the entitlement used but it can be less or more.

See link below and go online and order your (COE) Certificate of Eligibility to determine your accurate VA max loan eligibility:


Personal Picture of Me as 19 kilo Tanker at Fort Knox, Ky

Joel Lobb
Senior  Loan Officer

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346