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Consider the loss of VA loan 'entitlement'
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Consider the loss of VA loan 'entitlement' | dotshock/Shutterstock.com

Consider the loss of VA loan 'entitlement'

When using a VA loan for investment property, you need to ask yourself: Is it worth giving up part of your mortgage entitlement?

How it works: If you're eligible for a VA mortgage, you're assigned a set amount -- called an "entitlement" -- which can be as high as $106,025 in most parts of the country. Each time you buy a home, the VA insures 25 percent of the purchase, and that amount is subtracted from your entitlement.

Once the entitlement is used up -- on one property or over several -- you'll have to rely on non-VA financing for any subsequent mortgage or refinancing.

Or, you can regain a portion of your entitlement by selling a property and repaying its VA loan.

Want to learn more about how to qualify for a VA mortgage? Here are five things you should know.

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Brought to you by Veterans United Home Loans Veteran Homebuyer Central Veterans and military members have access to one of the most powerful homebuying tools on the market – the VA loan.
These articles were created solely by Veterans United, a paying advertiser from whom Bankrate receives compensation. The editorial staff of Bankrate was not involved in the stories' preparation.
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