Second tier entitlement essentially means that you can qualify for two VA Loans at once. For example, if you are facing default or foreclosure on one VA Loan, you can apply for a second VA Loan under second tier entitlement. You are in essence replacing your first VA Loan that is in default with a new loan with easier and affordable terms. However, there are important restrictions to keep in mind with second tier entitlement.

Guidelines Behind Second Tier Loan Entitlement

If you currently have a VA Loan, and you are seeking a second VA Loan using your entitlement, the second loan amount must exceed $144,000. It is a complicated formula that is used to come up with that figure, so it is important to keep in mind that number must be exceeded on the second loan. Many veterans wonder why they would take on so much more debt. Well, the answer is simple; you may be in default on your first VA Loan so using your second entitlement benefit helps restructure the first loan. However, you are allowed to obtain a second VA Loan even if you are not in foreclosure or default on your first loan. You can use the second to purchase an investment property or a home that you would use as a vacation or second home. So keep these very important thoughts in mind.

Seeking Out the Guidance of a Professional

Second tier entitlements are tricky. If you find the whole process to confusing, then you must seek the services of a professional. We are the team that you need that explains how second tier entitlements work. They make sure that the VA Loan Specialist does not make any mistakes on the amount of money you are entitled to.

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