North Carolina Veterans may be eligible to purchase a new home with no down payment (using their VA loan eligibility) and not even realize it! We try to ALWAYS ask a potential borrower if they are eligible for a VA Loan, and we are constantly surprised when people say, “Well, I served in the Gulf,” but don’t realize that this might qualify them for a VA Loan with no down payment!
Another group of people we talk to will say, “Well, we used our VA Loan to buy a house in San Antonio.” Okay… did you SELL that house in San Antonio? If so, you can probably use your VA Benefits to get another VA Loan in Raleigh (or Charlotte, or Asheville – you get the picture). More good news? If you still own that house in San Antonio (for instance) you might STILL qualify to use your VA Loan benefits here in NC!
Many Veteran’s don’t realize that there is actually no limit on the number of VA Guaranteed Home Loans a veteran can receive, and this answer often surprises veteran borrowers who have used the program before. In reality, a Veteran may qualify (in some cases) to borrow for a home using VA Loan benefits for a Second Home.
Using Your VA Benefits More than Once
In many ways, the procedure for getting a second (or third, or fourth…) VA loan is similar to obtaining the initial home financing.
First, veterans must be able to show that they satisfy the basic eligibility rules mandated by the U.S. Department of Veterans Affairs. The terms of eligibility have to do with the amount of time and WHEN you served.
In general you need (more details about Service Dates and VA Loan Eligibility)
- 90 days or more, any part of which occurred during wartime, OR
- 181 continuous days or more (peacetime)
Second, the VA loan has to be received through a lender that has been approved by the U.S. Department of Veterans Affairs. It is important to check with lenders prior to starting to ensure that they are qualified to provide a VA mortgage. The process of becoming a VA lender is not easy and not all lenders are VA approved. (We are approved by VA)
Third, a VA Loan Underwriter is going to “qualify” you based upon your income and your credit history. Technically, the VA does not have a minimum Credit Score – but in GENERAL, it is pretty difficult to get a VA loan without AT LEAST a 600 credit Score (if you qualify for NC Housing Aid) or 620 if you Don’t qualify for NC Housing Aid.
Previous Bankruptcy is Okay… unless… the VA lost money on a Student Loan or a Previous Home.
If the VA loses money when veteran borrowers go into default, they are essentially doing a cost analysis on you to decide whether or not to grant you another VA loan. In addition if the VA suffered a loss on a previous loan you will be required to repay it before having your eligibility fully restored.
It’s important to understand that it is difficult (but not impossible) to hold more than one VA loan at a time. The loan you took out previously must be repaid in full before you will be eligible to apply for a new VA mortgage. Once the mortgage is paid off, you need to apply for your Certificate of Eligibility to be re-instated.
If you still own the property but it is no longer financed with a VA loan (either because you refinanced or paid off the mortgage) you may request a one-time exception to have your eligibility restored.
If your previous VA Loan was assumed – and the folks who bought the house and assumed the loan were VETERAN’s, they would need to put their “eligibility” in your place (I”m hoping this makes sense). There are some situations that allow for a VA Second Home (when you already own one property with a VA Loan on it).
If you qualify for a Second Home using your Benefits, we can help you with that too
Because all mortgage loans that are backed by the Government have the “best” interest rates right now, this is a GREAT program to use! In addition, there’s no monthly PMI! Even if you are purchasing a “Bigger” home, and you are going to make a downpayment, you might still want to use this program! If you are considering a purchase, and want to know more about qualifying for a VA mortgage loan, please call Steve and Eleanor Thorne, Govenment Mortgage Loan Experts, 919-649-5058