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.