Can I Get Two VA Loans? A Guide to Using Your VA Benefits Multiple Times

As a veteran, you may be eligible for a VA home loan, which offers great benefits like no down payment and no private mortgage insurance If you’ve already used your VA loan benefit to buy a house, you may be wondering – can I get a second VA loan?

The short answer is yes you can get multiple VA loans throughout your lifetime. However there are some specific rules and limitations around having more than one VA loan at the same time. Let’s break it down.

How VA Loan Entitlement Works

Your eligibility for a VA loan, including how much you can borrow, is based on something called your VA entitlement. This refers to the amount of your loan that the VA guarantees – usually 25% of the total loan amount.

For example, if you get a $200,000 VA loan, the VA would guarantee 25% or $50,000 of it. This guarantee protects the lender if you were to default on the loan.

You have two tiers of VA entitlement:

• Basic entitlement – $36,000
• Bonus entitlement – 25% of loan amount above $144,000

So for a $200,000 loan, your entitlement would be:

• $36,000 basic
• Plus 25% of $56,000 ($200,000 – $144,000) = $14,000 bonus

Total entitlement of $50,000.

Can You Have Two VA Loans at Once?

You can have two VA loans at the same time, but only under certain circumstances:

• You have orders for a Permanent Change of Station (PCS) and need to move.
• You want to keep your current home instead of selling it when you buy a new primary residence.

In these cases, your existing VA loan would tie up part of your entitlement, limiting how much you can borrow with the new loan without a down payment.

Calculating Available Entitlement

To calculate your available entitlement for a second loan, take the max entitlement in your county and subtract the amount used on your current loan.

For example:

• Max entitlement in county: $200,000
• Entitlement used on current loan: $50,000
• Remaining entitlement: $150,000

You can borrow up to 4 times your remaining entitlement ($600,000) with no down payment on the second loan.

When Would You Use a Second VA Loan?

Here are some common scenarios for getting a second VA loan:

Buying a New Primary Residence

If you sell your current home that you purchased with a VA loan, your entitlement is freed up to reuse for another VA purchase loan.

You can also keep your current home as a rental property and use your remaining entitlement to buy a new primary residence.

Refinancing an Existing VA Loan

You can refinance your current VA loan into a new VA loan to get a lower rate or change loan terms. This does not impact your entitlement.

You can also refinance out of your VA loan into a conventional loan to free up your entitlement for another VA purchase loan.

PCS Orders

As mentioned above, if you have PCS orders, you may be able to get a second VA loan for your new duty station while keeping your current VA loan home.

Loan Assumption

If another eligible veteran assumes your existing VA loan, they must substitute their own entitlement. This frees up your entitlement for a new VA loan.

Foreclosure

If you lose your home to foreclosure, you may still be able to get another VA loan after a waiting period (usually 2 years). However, your entitlement may be limited depending on the amount tied up in the foreclosed loan.

Tips for Getting Multiple VA Loans

• Check your remaining entitlement – your lender can help determine how much you have available.

• Consider putting down a down payment if needed to buy a more expensive house with your second loan.

• Make sure you can afford both loan payments if keeping your current home. Rental income can help offset the payment.

• Allow time between loans for any applicable waiting periods if recovering from foreclosure.

• Compare multiple lenders to find the best rates and terms on your second VA loan. Rates vary!

The Bottom Line

While you can’t have unlimited VA loans out at the same exact time, you can absolutely use your VA benefit multiple times throughout your homebuying life.

Understanding the VA entitlement rules is key to knowing how much you can borrow with subsequent loans. Connect with a lender to go over your specific situation if you want to use your hard-earned benefits again!