Can A VA Loan Be Used More Than Once? A Complete Guide

As a veteran or active military member, your VA home loan benefits allow you to purchase a home with no down payment and flexible underwriting. One of the best parts of VA loans is that they can be used more than once. But how many times can you reuse your VA home loan eligibility? Let’s take a deep dive into the details

Overview of VA Loans

First, let’s start with a quick refresher on what VA loans are. VA loans are mortgage loans guaranteed by the Department of Veterans Affairs that allow eligible borrowers to purchase a home without any down payment. Key benefits include:

• Requires no down payment
• No monthly mortgage insurance
• Flexible credit guidelines
• Ability to roll closing costs into the loan

To qualify, you must be an active duty service member, veteran, or surviving spouse. You’ll also need to meet basic credit and income requirements. VA loans can be used to purchase or refinance a primary residence.

VA Entitlement

The key to understanding how often you can reuse your VA benefits lies in VA entitlement. This refers to the amount the VA promises to repay the lender if you were to default on the loan.

Most borrowers have access to $36,000 in entitlement for a single veteran or $144,000 for a married veteran. You can use all of your available entitlement when purchasing your first home.

For example, if you buy a $300,000 home, you’ll likely use around $75,000 of your entitlement. This leaves $61,000 remaining that can be applied to a future VA loan

No Limit on Using VA Loans

The great news is there is no maximum limit on how many times you can use a VA loan! You can use your benefits once, twice, three times or more. As long as you have entitlement remaining or restore it, you always have the option to get another VA mortgage.

Veterans United has even helped veterans complete their 9th VA loan! It’s truly a lifetime benefit you can tap into time and time again

How to Restore Your Full Entitlement

What if you’ve used your full entitlement on that first home purchase? Not to worry, you can restore it!

Here are two options for restoring entitlement:

• Pay off your loan: If you sell the home and satisfy the loan, you can have your full entitlement restored by filing a VA form. This allows you to reuse the full $36,000/$144,000 for your next purchase.

• Natural restoration over time: Even if you keep the home, a portion of your entitlement is restored each month as you pay down the loan. This allowance accumulates and can be applied toward a second VA loan.

Either way, there are paths available to restore your benefits and purchase again.

Using Remaining Entitlement

Another possibility is utilizing any leftover entitlement from your first purchase toward a second VA loan. For example:

• You buy a $200,000 home and use $50,000 of your $144,000 entitlement.
• That leaves you with $94,000 remaining.
• You can now put that $94,000 toward a second VA loan while still retaining the first.

There are unique guidelines around having multiple VA loans at once, so be sure to discuss the specifics with a lender. But the bottom line is you can absolutely tap into remaining entitlement for another VA purchase.

Special Rules Around Multiple VA Loans

If you wish to have two VA loans at the same time, here are some key points:

• You can have up to two VA loans simultaneously. Any more than that requires you to pay off one of the existing loans first.

• Your eligibility on the second loan is reduced by any balances owed on the first mortgage.

• You must meet occupancy requirements on the property securing the second loan.

• There are maximum limits on how much you can borrow across both loans.

While juggling two VA mortgages takes some extra planning, it can be done if your entitlement supports it. Experts recommend consulting with an experienced VA lender to map out the specifics.

When to Use a VA Loan

Given the ability to reuse your benefits, VA loans are a great financing option in many cases. Here are some of the best times to use a VA loan:

• First time home purchase
• Moving and buying another primary residence
• Refinancing an existing VA loan to lower rate/payments
• Building a real estate portfolio with rental properties

Pretty much anytime you need financing for a primary residence, VA loans should be strongly considered thanks to the recurring benefit.

However, there are occasionally scenarios where a different loan type may be better:

• Conventional loan has a lower rate
• You’ve used up entitlement and need to borrow more than what remains
• Purchasing a truly luxury property above VA limits

Even in those cases, be sure to get a VA loan quote for comparison first. You might be surprised at how competitive they can be.

How Often Do People Use VA Loans?

Given the ability to reuse VA financing, how often do most people take advantage? Here are some statistics on real world usage:

• 54% use their VA entitlement just once
• 24% use it twice
• 13% for a third time
• 9% use it four or more times

So while over half use it only for their first purchase, a sizable 46% go on to reuse their benefits one or more additional times throughout their lifetime.

Getting Started With Your Next VA Loan

If you’re ready to tap into your VA home loan perks once again, here are some tips:

• Check your remaining entitlement – Your lender can help you confirm how much you have left
• Get pre-approved – This shows sellers you’re a serious buyer and gets the loan process moving
• Ask about entitlement restoration if needed – See if you can restore more benefits to maximize purchasing power
• Compare multiple lenders – Shop around to find the best VA loan rates and closing costs

The process is smooth and straightforward, especially if you work with a reputable VA loan specialist. You’ve earned incredible home financing benefits through your service – be sure to take advantage!

Using a VA loan for the first, second, or tenth time can be an extremely valuable way to keep monthly payments low and avoid draining your savings on a down payment. Thanks to the ability to reuse your entitlement over and over, VA loans offer unmatched affordability and flexibility for veterans and military families.