Many people that qualify for VA loans, aren’t sure if they can have two at the same time. Many lenders do not know this either, but the answer is YES! Whether you are intending on purchasing a new home, or even refinancing a current mortgage into a VA loan, it is definitely possible and can be done.
The secret is something called second-tier entitlement. The VA guarantees loans in the unfortunate event that a borrower defaults, and that guaranteed amount is typically about 25% of the loan amount. That guaranteed amount is called entitlement. Eligible VA borrowers in most parts of the country have a primary entitlement amount of $36,000 and a secondary entitlement of $77,275. The secondary entitlement is your second-tier entitlement, and if you add both of those together, it equals $113,275.
So lets say, for instance, the first loan was $200,000 which would mean $50,000 of entitlement used. Take that from the $113,275 and it leaves $63,275 left over in entitlement. Since your entitlement is typically 25% of your full loan amount, you take 63,275 x 4 = 253,100. So as long as the second loan amount doesn’t exceed $253,100 no down payment will need to be factored in, and you can obtain your second VA loan!
This can all seem very confusing, there is a lot involved with calculating entitlement and eligibility, but our mortgage experts are here to help. If you would like to learn some more about VA loans, click here. We can always give you an expert analysis on whether you can qualify for a VA loan, or what the best option is for you. Give us a call at 833-START VA or email us at email@example.com today!
According to MarketWatch reports that the Federal Reserve will make some hawkish changes to its statement this week and confirm that another rate hike is coming in March.
The members of the Fed’s interest-rate setting body will want to send “some modest signal” that a rate hike is very likely at the March meeting, said Thomas Simons, a money market economist with Jefferies.
According to Michael Pearce, senior U.S. economist at Capital Economics, the signal of a March rate hike can be small. “It doesn’t need to be much,” he said.
Rates have been steadily increasing since the Recession, and 2018 is expected to follow that trend. Although unemployment rates are getting lower, wage growth stays the same; which could mean that inflation will not be too significant. Either way, it is important to pay off debt in these times of continuous rising rates.
The market was already anticipating a March rate hike. “For the last month, expectation of a March rate hikes “have been a one way bet, with the street grinding expectations higher,” said Pearce.
The Fed will meet for a two-day meeting ending on Jan. 31 and issue a statement at 2 p.m. Eastern. There is no press conference and the Fed won’t update its economic forecast. So the statement is all the market will have to pore over. Minutes of the meeting won’t come until February 21st.