This is third in a short series of questions and answers about VA Loans. VA Loans are one of the very few methods for a home buyer to purchase a new home with no down payment. In my first post, I discussed getting a certificate of eligibility (COE).  Here is a question that comes up now and again having to do with VA Guaranteed Loans, “I have already obtained one VA loan. Can I get another?”

Answer: Your VA eligibility can be re-instated depending on the circumstances. Normally, a VA loan has to be fully repaid before the eligibility can be re-instated and the property disposed of, however, on a one-time only basis, your eligibility can be restored when you still own the property if it is paid in full. You can also have your eligibility restored if your VA Guaranteed Loan is assumed but a qualified veteran. If your loan is assumed by other than a qualified veteran, your eligibility is still being used and cannot be re-instated until the loan is paid in full.

For those that are subject to a funding fee, the subsequent usage of the VA eligibility, requires a higher funding fee. Please check my previous post for funding fee schedule for first time usage.  Subsequent usage of your VA loan benefits at 100% loan to value, including purchase, rate and term refinance (other than interest rate reduction refinance, (IRRRL) and cash out refinance is 3.3%.

For more information about VA eligibility re-instatement, call me at 541-342-7576/541-221-3455 Cell or e-mail me at eugeneloanguy@gmail.com.

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