VA Mortgage Loans - Aceland Mortgage, LLC (2024)

FAQs

Are VA loans hard to get approved? ›

VA loan denial isn't uncommon, but your odds are generally better with a VA loan. According to HMDA data, 12.93% of VA loan applications received a denial in 2022, compared to 17.29% of FHA loans and 17.9% of conventional loans. While not uncommon, many scenarios may be preventable.

There is no maximum or limit on how many times you can use a VA loan. You can use a VA loan once, twice, three times or seven. As long as you have remaining entitlement, you typically always have the option to obtain another VA loan. Veterans United has even worked with a handful of Veterans on their 9th VA loan.

Yes, you technically can use a VA loan for a second home.

VA mortgages even come with specific occupancy requirements to help ensure that the homes they guarantee are inhabited for most of the year. Specifically, you'll have 60 days — in most cases — to move into your new property and start living in it full time.

Unlike Fannie Mae and Freddie Mac, VA does not purchase and securitize loans. Instead, VA loans are delivered to the secondary market, most often through Ginnie Mae's guaranteed mortgage-backed securities.

Common Reasons VA Loans are Denied

Income outside the qualification range. High debt-to-income ratio. Inconsistent employment history. Other factors outside your control (e.g., a private mortgage lender choosing to reduce or end participation in the VA loan program)

About 15% of VA loan applications get denied, so if your's isn't approved, you're not alone. If you're denied during the automated underwriting stage, you may be able to seek approval through manual underwriting.

The VA doesn't set a minimum credit score for VA loans at the program level. Instead, the VA relies on lenders to ensure borrowers are a satisfactory credit risk. VA lenders typically require a FICO score of at least 620. High loan amounts, such as those exceeding $1 million, may require a higher credit score.

You'll have to pay the closing costs when you're signing the final paperwork of your home mortgage process. At the mortgage closing, you'll have to bring any down payment and closing costs for the loan – although it's important to note here again that mortgages insured by the VA don't typically require a down payment.

Since 2020, eligible borrowers who have full entitlement are not subject to loan limits. For borrowers with partial entitlement, VA loan limits vary based on the county you're buying a home in. As of 2024, the standard VA loan limit in most parts of the country is $766,550.

Getting a second VA loan on a different home is possible. It often happens when an active service member receives Permanent Change of Station orders. However, a VA-approved lender must approve you having multiple loans. Essentially, you'll need to show that you have the means to repay both loans at once.

Can you buy two houses at once with a VA loan? ›

The Bottom Line: Yes, You Can Buy Two Homes With A VA Loan

As such, buying a home with a VA loan for the purpose of making it a second home or investment property isn't allowed, but you can convert the property after you've lived there. You can also make rental income by living in one unit and renting out the others.

In many cases the surviving spouse is the co-borrower on the loan, but even if the surviving spouse isn't included on the loan, they will most likely assume the debt when they take on their loved one's estate. If there are no children or other relatives to claim your estate, it will be sold to repay your VA loan debt.

If you want to use a VA loan to purchase a home, that home must be your primary residence. This means that you and your family must intend to live in the home after purchasing it. VA loans will not cover investment properties or a vacation home.

However, they also have drawbacks such as a required funding fee, property restrictions and potentially less equity to start. Alternatives to VA loans include conventional loans, FHA loans and USDA loans.

Veterans also have the option to put down a down payment to potentially reduce their funding fee and lifetime loan costs. But that flexibility can help younger Veterans and military families start building wealth faster, while giving others the option to keep their cash for home improvements or other investments.

One of the most common reasons VA loan denied is application errors. Failing to provide accurate and complete information on your loan application can raise red flags for underwriters. Double-check all the information you provide and make sure it matches your supporting documents.

If you've received an other than honorable, bad conduct, or dishonorable discharge, you may not be eligible for VA benefits.

The VA doesn't set a minimum credit score for VA loans at the program level. Instead, the VA relies on lenders to ensure borrowers are a satisfactory credit risk. VA lenders typically require a FICO score of at least 620. High loan amounts, such as those exceeding $1 million, may require a higher credit score.

Several reasons exist as to why a VA Home Loan might not qualify for a VA loan. Property Condition: The minimum requirements set by the VA for a property might not be met. These requirements are designed to ensure that the property is deemed safe, structurally sound, and sanitary.