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Most Veterans, loan offices and realtors are under the assumption that a Veteran can only have one VA loan at a time. This is not so!!! If you have a good loan officer, they should already know this.
VA mortgage Loan entitlements have two types: Basic and Bonus. Every eligible Veteran has basic entitlement of $36,000 to use for loans of $144,000 or less and bonus entitlement of $68,250 to use for loans of $144,001 and over. The bonus entitlement is derived by taking the Freddie Mac conforming loan limit for that county and multiplying by .25 and then subtracting the basic entitlement of $36,000. Example $417,000 x .25 = $104,250 – $36,000 = $68,250, this is the bonus amount. In higher cost counties the loan limits may be higher.
Here is an example of the Bonus entitlement.
a. $36,000 of veteran’s entitlement is currently used on basic loan and veteran is obtaining another VA loan with a limit of $417,000.
b. $417,000 x 25% = $104,250 max. entitlement
c. $104,250 – $36,000 = $68,250 available entitlement
d. $68,250 x 4 = $273,000 max. loan amount borrower can obtain
If the county limit is $650,000 calculate the same way:
a) $36,000 of veterans entitlement is currently used on a basic loan and veteran is obtaining another VA loan with a limit of $650,000
b) $650,000 x 25% = $162,500 max. entitlement
c) $162,500 – $36,000 = $126,500 available entitlement
d) $126,500 x 4 = $506,000 max. loan amount borrower can obtain
Keep in mind; there are other factors to be considered when it comes to Naples, Fort Myers, Estero, and Cape Coral veteran’s benefits: purchase price, county limits, income and credit of veteran and of course a loan officer that is knowledgeable of this benefit.