{"id":2916,"date":"2016-02-06T14:53:48","date_gmt":"2016-02-06T14:53:48","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=2916"},"modified":"2020-07-13T22:33:29","modified_gmt":"2020-07-13T22:33:29","slug":"married-military-couples-va-loan-strategies","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/married-military-couples-va-loan-strategies\/","title":{"rendered":"Military Couples, Advantages of Saying “I Do” on VA Home Loans"},"content":{"rendered":"

Married Military Couples have\u00a0great \"Marriedopportunities\u00a0in using\u00a0VA home loans!<\/h1>\n

For married couples, discussing VA entitlement\u00a0with a trained Team Move VA Home Loan\u00a0Expert\u00a0<\/strong><\/span><\/a>is\u00a0key to\u00a0understanding your cost saving opportunities.<\/p>\n

When\u00a0a\u00a0married couple\u00a0are both\u00a0in the military and\/or Veterans, there are some great strategies for VA loans<\/strong><\/span><\/a>.\u00a0\u00a0This can lower the\u00a0loan costs,\u00a0remove loan size restrictions, and\u00a0even overcome a previous foreclosure.\u00a0 The key thing to remember is to explore all options available for both VA eligible borrowers.\u00a0 Today we answer popular questions relating to choosing which borrower’s eligibility to use.<\/p>\n

Married Military Couples, one\u00a0Veteran has used the full entitlement:<\/h2>\n

\"VALet’s say that Service Member A has an existing VA home loan<\/strong> <\/span><\/a>and that loan will not be satisfied prior to the closing of the new home purchase and both borrowers are not exempt from the funding fee.\u00a0 Whether this is because the couple will rent out the home that has the existing VA loan or they will be selling it after the new purchase, there are choices.\u00a0 The first option, which will cost more than the first time use, is Service Member A could use his\/her bonus entitlement to purchase a home of $144,000 or more and the funding fee will be 3.3% (the first time use would have been 2.15 or 2.4%).\u00a0 There are two reasons though to use\u00a0Service Member B’s entitlement for saving money and having more purchase options.\u00a0 The first is the VA funding fee<\/strong><\/span><\/a> would only be 2.15 or 2.4% assuming that this would be Service Member B’s first time use of a VA home loan.\u00a0 The second is since this borrower doesn’t have an existing home loan, there\u00a0are no limitations on the loan size like there is when using bonus or 2nd tier entitlement<\/strong><\/span><\/a>.<\/p>\n

Married Military Couples, one Veteran has a VA foreclosure which ties up the basic entitlement:<\/h2>\n

There are several reasons in this case to use the spouse’s entitlement that doesn’t have the foreclosure.\u00a0 This example assumes both borrowers are not exempt from the VA funding fee<\/strong><\/span><\/a>.<\/p>\n

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  1. The Veteran with the foreclosure will probably have a lower credit score which could affect the interest on the new VA loan<\/a><\/strong><\/span><\/li>\n
  2. The Veteran with the foreclosure would have to use his\/her bonus entitlement since part or all of the basic entitlement would be tied up from the foreclosure.\u00a0 This could put loan size limits on the new purchase<\/li>\n
  3. The Veteran that doesn’t have the foreclosure should qualify easier for a mortgage and would have a lower VA funding fee<\/strong> <\/span><\/a>(assuming it is a first time use) of 2.15 – 2.4% compared to 3.3%<\/li>\n<\/ol>\n

    Married Military Couples,\u00a0Both have\u00a0never used their VA entitlement and one Veteran is considered 10% or more disabled by VA<\/h2>\n

    In this scenario, both borrowers would have no restrictions to loan amounts since there are no\u00a0existing VA home loans<\/strong><\/span><\/a>, but there is a big cost savings if the disabled Veteran’s entitlement is used.\u00a0 Using the entitlement of the disabled Veteran is beneficial because this borrower will be exempt from the VA funding fee<\/strong><\/span><\/a>.\u00a0 This saves 2.15 – 2.4% in this example, depending if the borrower was regular military, National Guard, or Reserves.<\/p>\n

    Married Military Couples:\u00a0 What if the married couple want to own two primary residences?<\/h2>\n

    This doesn’t happen often but sometimes married service members are stationed at different bases or have other reasons to hold separate households at least part of the year.\u00a0 Let’s say that one borrower is a Marine stationed in Camp Lejeune and the other is stationed at Fort Bragg.\u00a0 The Marine could use\u00a0the VA entitlement to purchase a primary residence for the Marine and the family, while the borrower in the Army would occupy a home in Fayetteville.\u00a0 This way each of the service members have a home within a short commute to their bases and the family can visit the other houses throughout the year.<\/p>\n

    Married Military Couples may own up to 4 properties with VA mortgages.<\/h2>\n

    Do you want to buy homes with no money down and build a real estate investment portfolio over the years?\u00a0 Yes, married service members where both have VA entitlement, can have up to 4 VA home loans<\/strong><\/span><\/a>!<\/p>\n

    First of all, VA home loans<\/strong> <\/span><\/a>are only for the purpose of buying a primary residence and it is important that a buyer does not commit loan fraud by using a VA loan for no money down and immediately rent it out.\u00a0 The borrower that will satisfy the occupancy requirement must occupy the house within 60 days of closing and it must be the intent of the buyers to occupy the home as a principal residence.\u00a0 But transfers happen, wants change, and opportunities happen in life.\u00a0 So technically, both Veterans could have the following scenario take place:<\/p>\n