I'm looking to move into a larger house and sell my current home. I'm using a VA loan on my current home, and would like to use it on the new home. My question is, for anyone who's had a similar experience, how did the timing work out for you? It appears that I would need to close on my current house some time before closing on the new one. This could be a real pain, as I'm looking for a new home but haven't decided on one and don't know when the right one will come along.

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Posted by npt817

Prairieville, LA

Member since Sep 2010

1370 posts

Posted on 1/11/21 at 10:48 am to indytiger

You can use VA loan again to buy a new home while still maintaining your current home as long as you have enough eligibility left and you can cover it in your DTI. I help customers with this all the time.

This post was edited on 1/11/21 at 12:26 pm

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Posted by ellesssuuu

Baton Rouge

Member since Mar 2016

2781 posts

Posted on 1/11/21 at 4:32 pm to indytiger

You can have 2 VA loans at the same time as long as you have enough eligibility

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Posted by oneg8rh8r

Port Ludlow, WA

Member since Dec 2003

2702 posts

Posted on 1/11/21 at 6:43 pm to ellesssuuu

If your current home has a VA loan and you are selling it and plan to purchase the next one using VA, you have to sell (close) your current home first or you will have a reduced VA guarantee amount for the second home. Where I live the VA guarantee amt is $548,250.00

The way the guarantee works is: If you primary home is under that limit, than you can purchase the home for no money down, but have to pay a VA funding fee (2.3% first time use / 3.6% subsequent times in addition to loan processing fees, unless of course you have already retired and have a disability rating, in that even it is ZERO% VA funding fee.

If you have a reduced VA guarantee (remainder between original VA loan and guarantee) or purchasing a new home that exceed your limit, you will be responsible for 25% of the difference between your va guarantee and the amount you borrow.

IE... $750K (home or unused VA guarantee and $548,250 limit) - $548,250 = $201.750...therefore purchaser would owe $50,437 to get into jumbo or second home.

This post was edited on 1/11/21 at 11:26 pm

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Posted by indytiger

baton rouge/indy

Member since Oct 2004

9834 posts

Posted on 1/12/21 at 6:42 am to oneg8rh8r

quote:
If your current home has a VA loan and you are selling it and plan to purchase the next one using VA, you have to sell (close) your current home first or you will have a reduced VA guarantee amount for the second home. Where I live the VA guarantee amt is $548,250.00

The way the guarantee works is: If you primary home is under that limit, than you can purchase the home for no money down, but have to pay a VA funding fee (2.3% first time use / 3.6% subsequent times in addition to loan processing fees, unless of course you have already retired and have a disability rating, in that even it is ZERO% VA funding fee.

If you have a reduced VA guarantee (remainder between original VA loan and guarantee) or purchasing a new home that exceed your limit, you will be responsible for 25% of the difference between your va guarantee and the amount you borrow.

IE... $750K (home or unused VA guarantee and $548,250 limit) - $548,250 = $201.750...therefore purchaser would owe $50,437 to get into jumbo or second home.

Thank you that was very helpful.

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