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Can I use my VA Home Loan Benefits more than once in Tacoma or Seattle?

Working with VA home buyers in Tacoma over the years, I have this question come up quite often.

Can I use my VA Mortgage Benefits more than once? The answer is YES! Although using your VA benefits a second time, could be more expensive. VA differentiates between first time and subsequent use for VA Loans with a downpayment of less than 5%. Currently the VA funding fee for first time use is 2.15% vs 3.30 for subsequent use. Veteran's receiving a 10% or more disability payment, are exempt from paying the VA Funding Fees. Below is the 2009 VA funding Fee Schedule:

2009 VA Funding Fees Active Duty Reservist
& Veterans & National Guard

Loans for purchase or construction with downpayments of less than 5%, refinancing, and home improvemment

2.15 percent

2.40 percent
Loans for purchase or construction with downpayments of at least 5%, but less than 10%

1.50 percent

1.75 percent
Loans for purchase or construction with downpayments of 10% or more

1.25 percent

1.50 percent
Loans for manufactured homes

1 percent

1 percent
Interest rate reduction loans

.50 percent

.50 percent
Assumption of a VA-guaranteed loan

.50 percent

.50 percent
Second or subsequent use of entitlement with no downpayment

3.3 percent

3.3 percent

A second question that comes up is, If I still own the home, but have since refinanced my VA loan to a conventional loan, can I use my VA Benefits again? The answer is YES.

There is a quirky rule regarding restoration of eligibility when the veteran still owns a property that was financed VA, even if the property is free and clear.

VA will do a one-time restoration of eligibility to the veteran. This restoration allows the veteran to purchase another home using their full VA Home Loan benefits.

** With the recent changes in qualifying, when keeping your current home as a rental, VA does not follow the same guidelines as Fannie Mae, Freddie Mac & FHA. This alone could be a deal saver! For more details on this or an VA Home Loan Question, visit us online at http://www.VAHOMELOANSTACOMA.COM

Posted Tuesday Oct 13