Every week I spend time researching the questions buyers are asking Google and ChatGPT before they ever contact a Realtor or lender. My goal is to keep you informed about what your clients are thinking—and help you answer their questions with confidence.
This Week’s Focus: The VA Benefit Many People Don’t Understand
Here's a question that surprises both Veterans and Realtors:
“I already have a VA loan. Can I use my VA benefit again?”
Quite possibly!
A Veteran's VA benefit is not necessarily one-and-done, and having an existing VA loan does not automatically prevent a Veteran from obtaining another one.
The key is something called remaining entitlement.
“Can a Veteran actually have two VA loans at the same time?”
Yes, under certain circumstances.
If a Veteran has enough remaining entitlement, they may be able to use VA financing again while the original VA loan is still outstanding.
This sometimes comes up when a Veteran receives a PCS and needs to relocate, wants to retain a current home as a rental, or has another legitimate reason for purchasing a new primary residence.
The amount available depends on how much entitlement is already tied to the existing VA loan, the new property's location and loan amount, and the Veteran's overall eligibility and qualification.
And here's the important part:
Don't assume the answer is no. We will pull the COE and run the numbers!
“What if there isn't enough remaining entitlement?”
That still doesn't necessarily eliminate VA financing.
Depending on the numbers, the Veteran may be able to make a down payment to cover the difference and still take advantage of VA financing.
This is why remaining-entitlement calculations are so important. The answer isn't simply, “You already have a VA loan, so you can't use VA again.”
“Can someone assume my client's VA mortgage?”
Potentially, yes—and this is becoming a much more interesting conversation with today's interest rates.
VA loans are assumable, subject to VA and servicer requirements and approval of the person assuming the loan.
And yes, the person assuming the VA loan does not necessarily have to be a Veteran.
But there is a very important issue Veterans need to understand.
“What happens to the Veteran's entitlement after an assumption?”
This is where we need to be careful.
If another qualified Veteran assumes the loan and substitutes their VA entitlement, the selling Veteran may be able to have their entitlement restored.
If a non-Veteran—or a Veteran who does not substitute entitlement—assumes the loan, the original Veteran's entitlement can remain tied to that property until the VA loan is ultimately paid off.
So an attractive low-rate assumption may be wonderful for the buyer, but we also need to understand what it means for the Veteran's future VA purchasing power.
Karen's Loan Desk
I've worked with VA financing for many years, and one of the things I've learned is never to assume a Veteran's benefit has been exhausted simply because they've used it before.
Once we review the Certificate of Eligibility and calculate the remaining entitlement, the picture can look very different.
This is especially important when a Veteran is relocating or would like to retain the existing property rather than sell it.
The takeaway:
Before telling a Veteran they need conventional financing—or that they must sell their existing home—let's pull the COE and calculate what's actually available.
There may be another option.
Ask Karen
Question: “My Veteran buyer already owns a home with a VA loan. Should I assume they'll need conventional financing for the next purchase?”
Answer: Absolutely not.
Let's first determine:
- How much VA entitlement was used on the existing loan?
- How much entitlement remains?
- What is the price of the new home?
- Will a down payment be necessary?
- Does the new property meet VA occupancy requirements?
- Will the existing property be sold, retained or possibly assumed?
Only then can we determine the best financing strategy.
AI Prompt of the Week for Realtors
Copy and paste this into ChatGPT:
Act as an experienced Realtor writing to Veterans and active-duty military homeowners. Create a friendly, educational email explaining that having an existing VA loan does not necessarily mean their VA home loan benefit has been used up. Explain in simple terms that some Veterans may have remaining entitlement that could allow them to purchase another primary residence using VA financing, and that VA loans may also be assumable. Encourage the reader to have their Certificate of Eligibility reviewed by an experienced VA mortgage professional before assuming they cannot use their benefit again. Keep the tone conversational, non-salesy and under 250 words.
Have a wonderful weekend!
Karen Card
The Card Team
Certified Veteran Lending Specialist
Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, Families in Transition and Homeowners Navigate Today's Mortgage Market.
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