The VA mortgage loan became available in 1944 to offer housing to veterans and their families. To be qualified for a VA loan, a veteran must have rendered active duty and should not have been given a dishonorable discharge. In most cases, no down payment will be needed because the Veterans Administration guarantees up to 25 percent of the mortgage loan.
However, it should be noted that the VA only acts as guarantor and is not the lender. Usually, a private lender or mortgage company will provide the loan and the veteran will also have to qualify through good credit history and debt-income ratios.
Before we look at the possibility of having two VA mortgage loans at the same time, let us examine the requirements for getting a VA mortgage loan. First of all, the applicant must be a qualified veteran who has sufficient home loan entitlement. Secondly, the loan must be used to buy a home. Also, the applicant must plan to reside in the property after closing the loan. Fourth, the applicant must have good credit history. Lastly, He must have sufficient income to make the mortgage payments, cover the expenses often needed to maintain home, and the remaining income should be sufficient for the family’s living expenses.
With regards to having two VA loans at the same time, an applicant would be able to get a second VA mortgage loan if his home loan entitlement is still sufficient to cover the new home. He should also be able to prove that the new home would be more suitable to his requirements. However, it should be noted that VA loans cannot be utilized to buy properties for investments. What should be considered is the remaining amount in the entitlement. However, a veteran may utilize a Streamline VA Refinance for an investment property. This would be the case for the veteran who has two VA loans at the same time. He has moved out of the older property that he had formerly taken as his home and transferred to the new property. Meanwhile, he is renting out the older home.
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