Use Your Remaining Entitlement To Get A Second VA Loan

If you have had a VA loan in the past, you might have some "remaining entitlement" which can be used to obtain another VA loan.  At the present time, eligible veterans have an amount of entitlement equal to $36,000.  This amount has increase gradually over time. Veterans who purchased a home when the entitlement amount was less can use what was left of their entitlement then and add it to the difference based upon the current level.  This would allow you to have a adequate entitlement to get VA loan financing.  Also, bear in mind that if you want to obtain a loan of $144,000 or more, you can access a maximum amount of entitlement equal to $50,750.

In addition, most lenders will require that a combination of the guaranty entitlement and any cash down payment must equal 25% of the reasonable value or the sales price of the property, whichever may be less.

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VA Loan Purchasing: What About Restoration Of Entitlement

There are certain conditions in which a veteran who has previously purchased a home using a VA home loan, can take their previously used entitlement and actually have it restored to its original amount.  This is what restoration of entitlement is all about.  It allows veterans to purchase another home.

Of course, to reap the benefits of this provision, one or the other of the following required conditions must be met.  First, the property that was bought with the previous VA loan must already be sold and the loan should be paid in full.  Second, the buyer (also called a qualified veteran-transferee) agrees to assume the remaining balance on the previous VA loan.  This buyer will then substitute his or her entitlement for the same amount of entitlement that was used by the seller.

Restoration of entitlement can be granted only once.  The veteran must have already paid the loan in full.

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Interesting Historical Highlights Of The Veterans Administration

For the many veterans who take advantage of the financing resources of the VA to obtain home loans, it is often overlooked how amazing the existence of such an organization is in the history of the world.  The Veterans Administration or the Department of Veterans Affairs is the outgrown of nearly four centuries of military veterans assistance programs in America.

From the time of the Pilgrims at Plymouth, onward to the fledgling United States, and on to the conflict of the Civil War, efforts have been taken to provide for the medical and financial assistance of disabled veterans.  Everything from pension plans to state-ran veteran hospitals were developed during the 17th, 18th, 19th, and 20th centuries.

The Veterans Administration was established in 1930 and continued to expand throughout the 20th century.  In time, home lending assistance became a recognized part of the VA broad system of veteran's benefit programs.  The VA offers one of the most complete systems of its kind in the world.

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What Are Fees That Must Be Authorized By The VA?

Often, when you have a VA home loan there are other fees that may be charged, but which must be authorized by the VA to become applicable.  It is the lender that will contact the local VA office seeking approval of these additional fees, which may be included among the closing costs.  They may be assessed if they are typically paid the borrower in certain areas or jurisdictions or if they are considered reasonable and customary in the same district.

Take a look at the following fees, many of which that will be covered by the lender if not approved by the VA:

• document preparation fees
• preparing loan papers
• attorneys services other than for title work
• photographs
• interest rate lock-in fees
• postage and other mailing charges
• stationery
• telephone calls
• amortization schedules
• escrow fees or charges
• notary fees
• trustee's fees or charges
• loan application or processing fees
• charges by loan brokers
• tax service fees

It is also possible that these fees can be incorporated with other closing costs into the cost of the loan and then paid by the seller.  There is some room for negotiation in these matters, so it might be helpful to consult the real estate agent or even the lender when deal with this stage of the transaction.

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Wartime And Peacetime Eligibility Differences For VA Loans

What are some more exact requirements for eligibility for those veterans who are interested in obtaining home financing assistance from the Veterans Administration?  Briefly, a veteran is eligible for VA home loan benefits if he or she served on active duty in any of the following branches of the armed forces: Army, Navy, Air Force, Marine Corps, or Coast Guard.  Furthermore, you must also have been discharged under any conditions other than dishonorable after a certain time period.

These time periods are based upon whether you served during wartime or peacetime.  For those veterans who served during wartime, the timeframe for eligibility is 90 days or more.  If the veteran served during peacetime, the amount of days for eligibility is 181 continuous days or more.

Specific periods of wartime and peacetime that are covered under the provision of the VA's General Rule for Eligibility, include the following periods of time:

Wartime - World War II: 9/16/40-7/25/47; Korean conflict: 6/27/50-1/31/55; Vietnam era: 8/5/64-5/7/75; Persian Gulf War: 8/2/90 – undetermined

Peacetime - Post-World War II period: 7/26/47-6/26/50; Post-Korean period
2/1/55-8/4/64; Post-Vietnam period: 5/8/75-8/1/90

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