A VA loan can help you achieve your dream of homeownership with more flexible lending criteria. However, these loans are only available for eligible veterans, active duty service members, and surviving spouses. If you’ve used your VA loan before or are considering using your entitlement to purchase your first house, you might wonder, “How many times can I use my VA loan?”
Believe it or not, you can use your VA loan more than once, and it’s a great option for borrowers who have already paid off their loan and want to move. However, how many times you can use your VA loan depends on several factors because you’ll have to meet both the VA and a private lender’s requirements and criteria to qualify.
How many times can you use a VA loan? If you’ve already used your VA loan and have remaining entitlement, you can use your VA loan as many times as you need. However, there are several things to keep in mind. Keep reading to get a better understanding of how many times you can use a VA loan.
As a veteran, one of the benefits you have earned through your service is the ability to get a VA home loan. VA loans offer huge advantages like no down payment and no private mortgage insurance. This allows veterans to more easily afford the dream of homeownership.
But can you use a VA loan more than just one time in your life? The answer is yes!
I want to provide you all the details in this article on whether you can use a VA loan for multiple home purchases. As we’ll see, there is no maximum limit on the number of times you can use a VA loan.
VA Loan Basics
First, let’s do a quick overview of what VA loans are and who is eligible for them
VA loans are mortgages guaranteed by the Department of Veterans Affairs They offer big benefits to eligible borrowers like
- No down payment required
- No monthly mortgage insurance
- Flexible credit score requirements
- Ability to roll closing costs into the loan
To be eligible, you must be one of the following:
- Active duty service member
- Veteran who served minimum 90 days active duty and was discharged honorably
- Surviving spouse of a veteran who died in the line of duty or from a service-connected disability
The VA guarantees a portion of these loans, providing protection for lenders while allowing better terms for the borrower.
Now let’s look at how many times you can tap into this great program.
There Is No Limit on Using VA Loans
The great news is there is no maximum number of times you can utilize a VA loan. If you meet the eligibility criteria, you can use a VA loan once, twice, three times or more throughout your lifetime.
As long as you have remaining entitlement – which we’ll explain shortly – you have the option to get additional VA loans any time you need to purchase or refinance a home.
In fact, Veterans United has worked with some borrowers on their 9th VA loan! So you can be confident you can use this benefit multiple times if needed.
VA Entitlement
The key to being able to utilize multiple VA loans is having available entitlement.
When you qualify for a VA loan, you are granted a certain amount of VA entitlement. This entitlement is basically the amount the VA promises to repay the lender if you were to default on the loan.
You have both basic and bonus entitlement, up to a maximum combined amount. Whenever you use a VA loan, a portion of your entitlement is allocated to that loan.
Typically, 25% of the loan amount is tied up from your entitlement. So if you purchase a $200,000 home, around $50,000 of your entitlement would be used for that loan.
The good news is you can restore your entitlement once a loan is paid off, freeing it up for your next home purchase!
How to Restore Your Entitlement
There are two main ways borrowers restore their full entitlement after using a VA loan:
1. Sell the Home
The most common scenario is you use a VA loan to buy your first home. Later, when you sell that home and pay off the mortgage, you can have your full entitlement restored. This allows you to tap into the full VA loan program for your next purchase.
For example, let’s say you used $50,000 of your entitlement on your first $200,000 home purchase. Once sold and that mortgage is paid off, you could complete paperwork to have the full $50,000 entitlement restored to you.
This gives you access to your complete VA loan benefit all over again!
2. Refinance and Rent Out Existing Property
If instead of selling you want to keep your first home as a rental, you can refinance into a conventional loan. This will free up your entitlement that was being used on the VA loan.
You can then rent out that initial property and utilize your restored entitlement to buy a new primary residence with a fresh VA loan.
There are some specific guidelines around having multiple active VA loans that you’d want to review before pursuing this option. But it is possible in certain situations!
Using Multiple VA Loans at Once
Generally, you can only have two VA loans open at the same time. The reason is VA loans require you to live in the home, with a few exceptions.
Situations where you might have two active VA loans simultaneously include:
- Purchased existing home with VA loan, now using VA to buy new primary residence
- Active duty service member who bought a home with VA loan and is now being relocated by the military to a new station
In these cases, you can rent out or sell the initial home. You can then tap into your remaining entitlement for a second VA loan on a new primary home.
There are special rules around this, so be sure to discuss the specifics with a lender. But the bottom line is you can qualify for multiple VA loans concurrently in the right circumstances.
When to Use VA Entitlement vs. Conventional Loan
While you can keep using VA loans, there are times it may make sense to opt for a conventional loan instead, such as:
- If you have an excellent credit score, you may find even lower rates on conventional loans
- If you’ve used your VA entitlement and don’t have enough remaining for the new home purchase price
In scenario #2, you might look at refinancing your current VA loan to a conventional loan. This can free up more entitlement for you to maximize your loan amount on the next home.
The Lifetime Power of VA Loans
The ability to keep tapping into your VA loan benefit for multiple purchases is an incredible advantage for eligible veterans and service members.
You’ve earned this benefit through your military service, and you can leverage it throughout your lifetime. If you need to upsize, downsize, or relocate, you can keep banking on your VA entitlement.
Can You Have Multiple VA Loans at the Same Time?
How many VA loans can you have? Since you can use your VA benefit multiple times, you might wonder, “Can you have 2 VA loans at the same time?” VA loans are designed for primary residences. Therefore, you can’t get them for any type of property you don’t plan to live in. However, there are a few exceptions where you can have two properties financed with a VA loan simultaneously.
This is most common when active duty service members receive permanent change of station (PCS) orders, so they must move to a new location. If this happens, as long as you still qualify for a VA loan, you can get a second home with another VA loan. However, this is something you’ll have to discuss with your lender.
This example is a special circumstance, and the VA is willing to grant an exception. However, most people can’t use multiple VA loans simultaneously because the VA has specific occupancy requirements. For instance, you must live in the home for at least 12 months and move in within 60 days or a reasonable timeframe.
In any case, you’ll be responsible for paying both mortgages. That means meeting VA loan income requirements, having a good enough credit score, and proving your ability to repay both mortgages simultaneously. Additionally, you must have enough of your remaining entitlement left over from the first loan to get the benefit of the zero percent down payment associated with VA loans. You’ll be responsible for a down payment if you don’t have enough of your entitlement left.
From here, the next question you may ask yourself is, “Can I have three VA loans at the same time?” The answer is probably not. While it’s possible to use your VA loan as many times as you want, entitlement can become an issue with a second home purchase if you haven’t paid off the original loan in full and sold the home. At the same time, VA loans are meant for primary residences, and you can’t live in three places at once.
How to Take Out a Second VA Loan
To take out a second VA loan, you must determine your eligibility and calculate your remaining entitlement. If you’ve restored entitlement either by selling your first home financed with a VA loan or by using the VA’s one-time restoration, you won’t have to worry about making a down payment. However, if you have partial entitlement, the amount left may require a down payment to cover the 25% guaranteed amount.
Apply for a second VA home loan with Griffin Funding. We can obtain your Certificate of Eligibility (COE) to determine whether you have partial or full entitlement and discuss your options to help you use your VA loan a second or third time.
VA Loan Secrets: What Veterans MUST Know about Using Multiple VA Loans (updated 2023)
FAQ
Can I use the VA loan a second time?
How many loans can you have with VA?
How many times can I use my VA loan certificate?
Can I use my VA loan if I already own a house?
Can I have more than one VA loan at the same time?
Once you earn the VA home loan benefit, it’s yours for life. This isn’t a one-time lending option or a program exclusively for first-time homebuyers. You can use these benefits over and over again. In fact, it’s possible to have more than one VA loan at the same time.
How many times can you use a VA loan?
There is no maximum or limit on how many times you can use a VA loan. You can use a VA loan once, twice, three times or seven. As long as you have remaining entitlement, you typically always have the option to obtain another VA loan. Veterans United has even worked with a handful of Veterans on their 9th VA loan.
Should you take out more than one VA loan?
For veterans, service members and eligible family members, taking out more than one Veterans Affairs (VA) loan can be a good option for financing a home after selling another one or if you’re assigned a new military base and have to move. No matter the reason, here’s what to know when considering borrowing more than one VA loan.
Are VA loans a one-time benefit?
VA loans are not a one-time benefit. Veterans and active-duty service members can use their VA loan benefits twice, three, four or more times. This article explores the guidelines and processes, helping you maximize this valuable opportunity to use VA loan benefits more than once.