How Many Times Can You Use A VA Loan?

What is a VA mortgage loan?

A VA loan is a type of home loan that is backed by the U.S. Department of Veterans Affairs (VA). It’s designed to make homeownership easier for those who have served or are serving in the military, as well as certain members of the National Guard and Reserves. These loans come with perks like no down payment, lower interest rates, and no private mortgage insurance (PMI), making it easier for service members to buy, build, or refinance a home they can call their own. *

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Who can get a VA loan?

VA loans are available to eligible veterans, active-duty service members, and some National Guard or Reserve members who meet specific service requirements. Surviving spouses of service members who died in the line of duty or from service-related injuries may also qualify. The first step is getting a Certificate of Eligibility (COE), which confirms you’re eligible for the loan. Once you have your COE, you can start exploring VA loan options that fit your needs. Learn more about VA home loan eligibility requirements to see if you qualify.

How many times can you use your VA loan? 

The VA loan benefit isn’t a one-time deal—you can use it again and again! As long as you have remaining entitlement and meet the eligibility requirements, you’re free to use your VA loan benefit multiple times over your lifetime. This applies whether you are buying a new home or refinancing your existing VA loan. 

How many VA loans can you have? 

Usually, you can only have one VA loan at a time since these loans are meant for primary residences. But there are exceptions. If you receive a permanent change of station (PCS) order, you might be able to hold two VA loans at once, each for a different primary residence. Of course, this depends on specific timelines, entitlement limits, and your mortgage lender’s requirements. It’s a good idea to speak with your mortgage lender about how this works, especially if you’re facing a military move.

Can you have two VA loans at the same time?  

Yes, it is possible to have two VA loans at the same time, but only under specific circumstances. For instance, if you purchased a home using a VA loan and later needed to relocate closer to your family for support or due to health issues, you may qualify for a second VA loan to finance a new primary residence. As long as you meet the eligibility requirements and still have sufficient entitlement remaining, the VA allows you to own two homes, even if only temporarily, to accommodate your changing needs.

Situations Where You Might Consider a Second VA Loan 

There are specific situations where it could make sense to explore a second VA loan, particularly when life circumstances call for flexibility. Here are some common scenarios where a second VA loan might be worth considering: 

Relocation 

Relocation due to a Permanent Change of Station (PCS) is one of the few circumstances that may allow you to hold multiple VA loans. If you’re moving to a new area and plan to keep your current VA-financed home as a rental or secondary property, a new VA loan could help you secure a primary residence in your new location. However, it’s important to note that you will need to demonstrate your ability to pay for both loans and have enough entitlement. 

Foreclosure  

If you’ve experienced a foreclosure on a home financed with a VA loan, it may still be possible to use your VA loan benefit in the future. Although entitlement may be reduced temporarily, there are ways to restore it over time. With careful planning, you may be able to restore your entitlement and qualify for a second VA loan. 

 Loan Assumption

VA loans are assumable, meaning another person can take over the loan under the right conditions. When considering this option, it’s essential to ensure your entitlement remains protected. By allowing a qualified buyer to assume your loan, you could free up your VA entitlement for future use, such as purchasing another home.

Restore Your VA Loan Entitlement  

After selling a VA-financed home or paying off a VA loan in full, you have the option to restore your entitlement. Restoring entitlement allows you to access the full VA loan benefit again, making it possible to purchase another property with a VA loan. This process is especially helpful for veterans who are considering buying another home and want to take advantage of VA loan perks, like no down payment.

Understanding VA Loan Entitlement 

VA loan entitlement is essentially the amount of your loan that the VA guarantees. This helps lenders feel confident about approving your loan, even with no down payment. Before you get started, you’ll need a Certificate of Eligibility (COE) to show how much entitlement you have available. Your mortgage lender will help you understand your specific entitlement and how it applies to your loan. They will also ensure that all calculations and paperwork align with VA guidelines for a smooth loan process. Now, let’s break down the different types of VA loan entitlements!

VA Loan Limit: Full Entitlement  

If you’re new to VA loans or have restored your entitlement after selling a previous VA home, you’re likely working with full entitlement. This means the VA will cover up to 25% of your loan amount, allowing you to buy with no down payment (as long as the loan meets VA guidelines). It’s a great benefit that can be restored over and over again, making it perfect for those looking to buy another home without a down payment. 

VA Loan Limit: Partial Entitlement  

If you still have an active VA loan or haven’t restored your full entitlement, you’re likely using partial entitlement. This might apply if you still own a VA-financed home, refinanced a VA loan into a non-VA product, or experienced a foreclosure. You could still use your VA loan benefit with partial entitlement, but you might need a down payment if the new loan exceeds the remaining entitlement. 

VA Loan Limit: Bonus Entitlement 

Bonus entitlement is like an extra boost that kicks in when you need a larger loan amount. Beyond the basic entitlement, it helps cover homes priced above $144,000, ensuring that up to 25% of the loan is still backed by the VA. This allows you to aim higher with your home purchase while maintaining the benefits of a VA loan.

How does reduced entitlement work? 

Reduced entitlement, or partial entitlement, comes into play when you still have a VA loan on a home or have defaulted on one. In this case, the VA guarantees only part of your loan amount. You could still borrow more, but you’ll need a down payment for any amount that goes beyond your available entitlement. It’s a flexible benefit, even when you’ve used part of it already!

Reduced Entitlement Example 

Let’s say your basic entitlement is $36,000, and you currently have a VA loan for $25,000. This leaves you with $11,000 of remaining entitlement. If you’re looking to buy a home priced at $200,000, you’d need to make up the difference with a loan amount of $189,000 ($200,000 – $11,000). It’s all about using what’s left of your entitlement wisely! 

How To Take Out A Second VA Home Loan 

If you’re considering using a VA loan for another home, just remember that it must be for a primary residence. The VA doesn’t back loans for second homes or vacation spots properties, but if you meet the entitlement and eligibility requirements, you could certainly use a VA loan again. The key is to make sure you’re moving into the new property, keeping the benefit focused on your primary residence. It’s best to speak with an expert VA-approved lender to discuss your specific needs and eligibility. 

*Rates are subject to change. Eligibility and approval is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral and underwriting requirements. Direct Mortgage Loans, LLC NMLS ID# is 832799 (www.nmlsconsumeraccess.com). Direct Mortgage Loans, LLC office is located at 11011 McCormick Rd Ste 400, Hunt Valley, MD 21031.