VA Mortgages: Second-Tier Entitlement

One of our favorite clientele to work with here at Patriot Home Mortgage-Pacific Group is active military and retired veterans, and we pride ourselves in exceeding expectations as we help them through all aspects of the VA mortgage qualification, purchase, and refinance processes. 

In mortgage terms, ENTITLEMENT is the amount of money the VA agency pledges to guarantee in the event of a borrower default. 

However, many veterans don't know that in certain situations, you can have TWO VA loans at the same time. Also, if you have faulted on one VA loan in the past, you may still qualify for a new one. 

The key to utilizing both of these is understanding second-tier entitlement.

Veterans currently have a primary entitlement of $36,000 and a secondary entitlement of $68,250. This second-tier entitlement allows veterans to purchase homes in markets where the average home is more expensive (such as Southern California or Virginia). Whatever amount of your entitlement isn't tied up in mortgage is available to you as excess in certain situations.


If you are in a situation where you need to have two VA loans in play at once (say, you are relocated to a new base but you want to keep and/or rent out your primary residence), then you may be able to take out a second VA loan to purchase a home in your new location.

If you meet the debt-to-income ratio and residual income requirements, the VA deems you capable of handling two loans at once.


The short answer is: Yes. Just because you're a soldier or veteran doesn't mean hard times don't befall you--including in the form of foreclosure. Luckily, just because you've have a VA loan foreclosure in the past doesn't mean you can't get another VA loan--sometimes in as soon as two years.

In this sceanrio, you may find much of your entitlement tied to your foreclosure, but a good, experienced loan officer with VA specialty, like those here at Patriot Home Mortgage-Pacific Group, can help you maximize the amount of your second-tier entitlement that can be put toward your new home.


Now that you know what's available, If you want to see if you qualify for two VA loans, or a second VA loan after a VA loan foreclosure, give us a call:

(949) 484-6690

or reach us by email

We can help you through the short pre-qualification process, and let you know just what we can do to help YOU maximize your second-tier entitlement.