Attention VA loan buyers: Changes to benefits!


Effective February 28, 2014, the VA home loan maximum benefit for the Hampton Roads area increased from $417,000 to $458,000, which is a positive change for many of our first- and second-time VA homebuyers. The increase means more buying power for veterans, and whether you are using your VA eligibility for the first or subsequent time, this is great news for everyone!


For buyers using their eligibility for the first time, you now have the option to use your loan for an extra 10% of the previous loan limit!  This is a great thing for all homebuyers because it shows the strength of our local market.  This increased loan limit opens up more possibilities for buyers.  You can now consider features in a home you might not have before.  Your options for new construction and the premier neighborhoods in Hampton Roads just got wider! 


If home values and prices were not steadily improving, the limit would likely have not been increased.  Even if you are using your VA loan for a home that is not in this price range, feel confident that the market is working for you just as much.  If you currently own a home in Hampton Roads, you can find our free, no pressure home valuation on our website for individual assurance of your home's value in today's market.


Here are three ways you could use your VA loan eligibility:    

  1. To our veterans who already own a home and have used their VA eligibility before, this opens up your buying power using second tier eligibility.  "What's that?" you say?  Did you realize that you can use your VA loan more than once?  Yes!!  For example, you purchased a home in another duty station and have that home rented.  You can use second tier to purchase a home where you are currently stationed.  (Side note: you MUST intend to live in the home you are purchasing to be able to use your VA loan.)  Say you purchased your first home for $200,000, and did not sell the home when you relocated. You would still have $258,000 in eligibility that you can use to buy a new home.  When you use your VA loan to buy a home in addition to one you already own, that is called second tier.  Of course, these numbers are generalized – you must meet income and debt ratios, and other financing requirements, but it’s worth noting that if you can provide documentation of a tenant paying rent, your mortgage may not have to be included with debts that determine your new eligibility amounts.

  2. Further, if you bought a home using your VA loan and then sold it, your VA eligibility will be restored.  You would then be able to use the full eligibility amount at your next duty station.  Again, to be clear, your eligibility amount is based on income and debt as well as VA eligibility.  Current service members, veterans and surviving spouses are eligible to use VA home buying benefits.

  3. The last example is less common.  A homeowner who purchased their house using a VA loan can have another VA buyer assume their loan.  For example, you bought your house for $200,000 and Uncle Sam tells you it is time to move again.  If you have a low interest rate that is not available in the current market, another VA buyer would likely be interested in assuming your loan.  This means they take it over for you at the lower interest rate.  This situation is a little trickier.  If you find yourself in a situation in which loan assumption may be an option, give me a call and let's talk about the specifics to make sure it is the best option for you and your future investments.


For more mortgage loan details, please talk to my friend and VA loan specialist James Walrod at Veteran's United Home Loan (757) 340-0013 ex. 7182, and tell him Kari sent you! 


Spring is coming.  We are seeing homebuyers come out from around the world!  As families prepare to PCS or move locally over Spring Break and the summer months, you will see an influx of homes for sale and for rent.  The Hampton Roads Military Relocation Team is stronger than ever and we are the name you can trust for all of your home buying, selling and management needs.  We are servicemen and women; we are military spouses and families.  We understand the lifestyle and the stress because it is ours as well.  Even more importantly, we understand the hardships and sacrifices of military life and it is our privilege to serve those who serve.  Give me a call or email anytime for immediate answers to your questions or concerns. 






Kari McMurray
Military Relocation Specialist  
Cell: 757-470-6895   Office: 757-346-9077




For any and all of your Real Estate needs contact

The Hampton Roads Military Relocation Team!

Proudly Serving Those Who Serve!



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