The VA loan carries many myths. The largest of them, however, deals with the VA entitlement. Many people believe you can only have 1 VA loan at a time. They believe once you use your entitlement, it’s gone. However, it’s not. There are ways you can have multiple VA loans at a time. Some borrowers can hold 2 VA loans at the same time if they meet certain circumstances.

How Entitlement Works

First, you must understand VA entitlement. It’s how veterans secure VA funding. Without it, you couldn’t qualify for a VA loan. Entitlement means the VA will guarantee a loan in your name. Basic entitlement equals $36,000. This means the VA will guarantee 4x this amount or $144,000. No, you aren’t stuck purchasing a home for $144,000 though. There is another type of entitlement called bonus entitlement.

You don’t have to do anything special to receive bonus entitlement. It’s available to eligible veterans. Right now, it’s equal to $70,025. This gives you total entitlement https://www.availableloan.net/payday-loans-ca/modesto of $106,025 or a purchase price of $424,100. [Read more…]