- Hey, welcome and welcome back to the channel.
On this video, where I talk all about
getting two VA loans at the same time.
Yes, it is possible to do so.
First of all, I'm Emmett Dempsey,
Mortgage Broker and owner of Treasure Coast Mortgage
here in Port St. Lucie.
I'm also a US Army Veteran,
so VA loans are a special topic of mine.
On this channel, we'll talk more about
mortgages, the home buying process,
and some cool things around Port St. Lucie
and the Treasure Coast here in Florida.
So if you're moving to Florida,
I definitely wanna talk to you.
If you're new here on the channel,
please think about subscribing.
There have been some changes to the VA mortgage loan,
and it was the Blue Water Navy Vietnam Veterans Act of 2019
that had changed some things
mainly if you had full entitlement.
So if you've never used your VA loan before
you can buy a house with no maximum.
So you wanna buy a million dollar house
with no down payment, you can.
So that was one major change.
However, there's something called secondary entitlement,
and I did this video once before
when I was at my previous company
and since then the loan limits have changed.
So I decided to redo this video.
I got a lot of calls, a lot of emails about this topic,
about getting two VA loans at the same time.
I wanna go into further detail about how that's possible.
So, you may be a Veteran, have a VA loan,
you're moving,
or even if you're in the same town
and you wanna buy something else,
or build or do something but you don't wanna
get rid of that property.
You might have bought it low and a cash flows
at especially at a great rate
and so you might wanna keep it.
So how do you buy a second property
with little out of pocket?
Well, the VA is a really good loan program.
I'm gonna show exactly how that's possible here in a minute.
Effectively, there's terms that you needed to know.
Basically it's about entitlement,
secondary entitlement and all that stuff.
So when you have your full entitlement of 36,000,
times that by four that's 144,000.
So you might see that number around the internet,
or I need it to be more than 144,000
that's because VA will guarantee 25% against loss.
That's it's insured loan,
that's why the rates are so good,
'cause VA will ensure against default.
So that number, times four 25% is how we arrive
at a lot of these things.
But in essence, it's really based off
your county loan limit
and they're set, every year or so by the FHFA
and the currently it's 510,400 here in St. Lucie County,
in Florida, where I'm at
and that's the same for most counties throughout America.
So really it all depends on how much entitlement
you have to have charges against you.
If you had applied for a closure,
it's really an individual case so definitely,
coming in case by case to see what you qualify for,
but really it's essentially 510,400,
especially the total loan that you can have.
So if you bought a property for 310,400,
you can do another $200,000 house.
That's really, and that's how you arrive there
and then you'll see in it the calculations,
if you live in a high cost County,
especially, like in Virginia, California,
you can buy even more property.
So let's go ahead and take a look
and go into a detailed explanation
of the VA secondary entitlement to buy two homes
at the same time.
Here we go.
Welcome to my handy dandy little Excel spreadsheet,
and definitely an Excel nerd for about everything.
So basically what we have here is a calculation of
how to calculate secondary entitlement,
how much house you can buy with your second VA loan
should you choose to do so, I'm going to that calculation.
Now, as I said I mentioned before
it all starts with the County Loan Limit.
So in most Counties in the country in 2020 it's 510,400.
I'm going to go into a Jumbo territory,
like in certain areas of Virginia.
I know when I was in the army I spend a lot of time
in Virginia at Fort Lee,
I think there's like nine high cost counties there
some kinds of California, et cetera,
that are high cost, and I'm going to go into those as well.
So, it all starts with your basic entitlement
and then there's what's called your secondary entitlement
and bonus entitlement you might hear it called
and you kind of back into this number.
If you can kinda look at the calculations,
it's 510,400 divide that by four that 25%
guarantee thing again,
and then this is basically your total entitlement
minus your basic entitlement which never changes.
So this secondary entitlement number can change
from year to year.
So let's say that you bought a house for $275,000.
So you're charged 68,750 in entitlement
and again, that's that four number again
so you divide it by four that's the entitlement charge
minus this number 127, 600,
minus that equals 58,850 remaining times four again,
and you end up with a maximum purchase price
for a second home with no down payment of 235,400.
And if you kind of look at it's basically
that plus that equals County loan limit.
It's basically a good rule of thumb,
but VA likes to complicate things and do times four
minus four, 25%, et cetera,
but you can kind of get to get an idea
now for your new home,
this tells you basically what the maximum loan purchase
price would be, maximum loan.
So let's say you wanna buy another $275,000 house.
So the max price is basically that.
And so the difference is 39,600.
So do you have to come up with that?
No, because the VA, again, it's a great loan,
You only have to go at 25% of the difference.
So basically you have to do a $9,900 down payment,
and now that this loan just so you know,
includes the funding fee.
Now, if you're not more than 10% disabled,
it's a pretty penny.
I know for first time it mirrors 2.3%
for subsequent use is 3.3%
it's finance but it's definitely a hefty fee,
especially if you go up in purchase price.
So you kinda have to take that into consideration
as far as what you can do,
and I'll have to digest this for simplicity.
Now, that's pretty damn good.
Basically, compare that to FHA and conventional,
so tuning 275,000 purchase price,
3.5% down is 9,625,
5% down on a second home or on a secondary, for conventional
that's, the minimum is 5% down, that's 13,000.
Now, both of these options they're gonna have
mortgage insurance VA has no mortgage insurance.
So that's why VA is an outstanding loan.
So let's go to another example,
you can do a Google search for FHFA kind of loan limits,
but this is for Virginia
and here's some high cost Counties
So 765,600, so that's one of the highest ones I see.
So let's do 765,600
You can see it kind of automatically changes all this stuff,
and basically that 275 you can buy that note
with no down payment.
So you can buy another $490,000 house,
with no down payments.
Let's just say you did a $400,000 house before,
you can buy another 365 house and you wanna buy another,
$400,000 house.
This is kind of how I come up with those numbers
to make sure that we're telling you the good information,
but check the County Loan Limit within your state
and just a rule of thumb is basically
these two purchase prices got,
they add up to your County loan limit,
but it's definitely, you can get two VA loans
at the same time.
You buy another primary bought another property
went normal with the VA.
It's definitely awesome.
Welcome back.
Hope it was informative.
Look at it how you can get two VA loans at the same time,
I definitely I've used myself.
I've counseled several Veterans to do the same.
So it's definitely a great use of your VA benefit
if you're a veteran service country
again, thank you for your service to all those veterans
out there.
Again, if you want your own personalized consultation,
definitely give me a call, go to dempseymortgage.com
If you want your own personalized analysis
about how to buy another property with a VA loan.
I wanna thank you so much for watching
and I'll see you guys on the next one.