I’m planning to use a second VA home loan, but I’m a bit confused about the process and need some clarity. I recently called the VA to check how much entitlement I have left, and the representative warned me that I’d need to move directly from my first VA home loan into my second. He said if I changed my address for even a short period (like staying with family for a few weeks), I’d be disqualified from using my second VA loan.
I have a renter lined up to move into my first property right after I leave, and I was planning to stay with family temporarily while I look for a new place. My lender hasn’t heard of this rule and said they’d look into it, but it’s been over a week, and I haven’t gotten any updates. I’ve searched for information but can’t find anything on this supposed rule.
Has anyone else had a gap between VA loans or heard of this rule? Any insight would be much appreciated. Thanks!
That’s not accurate. If it were true, everyone who PCS or stays in temporary housing while searching for a new home would be disqualified. I’ve done a lot of bonus entitlement VA loans, and I can confidently say the information you were given is wrong.
Emory said:
Are you keeping your first home as a rental property? If so, how much was the purchase price, and how much did you put down?
Yes, I’m keeping the first home as a rental, and I already have a signed lease for when I move out. I’m not worried about the entitlement—it’s already sorted out.
I used a VA loan for my first house, then moved into two separate rentals during a divorce before getting another VA-funded home. I also sold the first property and bought the second one within three weeks. The address change didn’t cause any problems for me.
The thing about calling the VA is you can get five different answers if you call five times. As a loan officer, I’ve learned to keep calling until I get the answer I need to move forward.
I think the VA rep might have been confused. Maybe they meant that if there’s a change in your address, it could affect how your current VA loan mortgage factors into your debt-to-income ratio, but even that doesn’t add up. I’ve worked with plenty of borrowers who PCS or stay in temporary housing without any issues. It sounds like a miscommunication or someone trying to get you off the phone. Proceed with your transaction, and don’t stress too much about it!