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.
The VA home loan is one of the best mortgage programs available for eligible veterans, active-duty service members and surviving spouses. Thanks to its generous terms and valuable benefits VA loans have helped countless military families achieve the dream of homeownership.
One of the most common questions new and repeat VA borrowers have is Can I use my VA loan more than once?
The short answer is yes, you can use your VA home loan benefit to buy multiple properties over your lifetime. There is no maximum limit on the number of times you can reuse your VA loan eligibility.
In this comprehensive guide, we’ll explain everything you need to know about using your VA loan entitlement more than once.
How the VA Loan Works
First, let’s quickly review how the VA home loan program functions.
The Department of Veterans Affairs (VA) guarantees a portion of VA loans made by private lenders. This guaranty protects the lender from losses if the borrower defaults.
Thanks to the VA backing a percentage of these loans, lenders can offer more flexible terms to eligible borrowers compared to conventional mortgages.
Key VA Loan Benefits
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No down payment requirement – Borrowers can finance 100% of the purchase price.
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No mortgage insurance – The VA guaranty removes the need for private mortgage insurance.
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Flexible credit guidelines – VA loans are available to borrowers with less-than-perfect credit.
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No prepayment penalties – Borrowers can pay off their loan early without penalty.
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** Ability to reuse benefit** – Veterans can tap into their VA entitlement multiple times.
What Is VA Entitlement?
VA entitlement refers to the amount the VA promises to repay the lender if the borrower defaults. This entitlement is what allows eligible borrowers to reuse their VA home loan benefits.
There are two levels of VA entitlement:
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Basic entitlement – The VA guarantees loans up to $36,000.
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Bonus entitlement – For loan amounts above $144,000, the VA guarantees 25% of the total loan amount.
For example, on a $300,000 loan, the VA would guarantee 25% of $300,000, or $75,000. This $75,000 is the borrower’s bonus entitlement.
Each time you use a VA loan, you tap into your available entitlement. As long as you have entitlement remaining, you can keep using your VA home loan eligibility to buy or refinance properties.
Can I Use a VA Loan More Than Once?
Yes, you can reuse your VA home loan benefit multiple times if you have entitlement available.
There is no limit to how many times you can access your VA entitlement over your lifetime. The VA does not impose a maximum number of usages for this earned benefit.
It’s quite common for repeat VA borrowers to use their VA loan three, four, or even more times throughout their homebuying years. Some borrowers have even used their VA home loan benefit nine times or more!
How to Check Your Remaining VA Entitlement
A loan officer can help check your current entitlement status. They will verify:
- Any active VA loans still being paid off
- VA loans paid in full but associated properties still owned
- Defaulted VA loans not yet resolved
Based on your specific history, the loan officer can calculate your available entitlement and loan limits.
Tapping Your Entitlement Again and Again
As long as you have entitlement remaining, you can keep using your VA home loan perk to:
- Purchase additional primary residences
- Refinance an existing VA loan into a lower rate/payment
- Take out a VA cash-out refinance
- Buy investment properties or vacation homes
VA borrowers can continue leveraging their entitlement for repeat purchases until the entitlement is completely exhausted.
And even if you use up all of your entitlement, there are options to restore it and start the process over again.
How to Restore VA Entitlement
Veterans looking to reuse their VA loan benefit have a few options for restoring their available entitlement:
1. Pay Off Loan and Sell Property
The most straightforward way to reset your full VA entitlement is to pay off your existing VA loan in full and sell the property. This completely frees up the entitlement used on that loan for reuse.
2. Refinance Into a Non-VA Loan
If you want to keep the property purchased with your VA loan, you can refinance into a non-VA loan type.
By refinancing into a conventional, FHA, or USDA loan program, your VA entitlement will be restored. You can then tap into it when buying or refinancing another property.
Just be aware that refinancing comes with costs like appraisal fees, closing costs, and potentially higher interest rates.
3. One-Time VA Entitlement Restoration
For borrowers who still own the property bought with their VA loan but paid off the mortgage, the VA offers a one-time restoration of entitlement.
This allows you to have full entitlement restored on a one-time basis without selling the property. Requirements include:
- Previous VA loan paid in full
- Still owning but not occupying property
- No restoration used previously
This exemption lets eligible borrowers reuse their VA loan benefit while also keeping their previously purchased property as a rental, vacation home, etc.
Can I Have Two VA Loans at Once?
It is possible to have two active VA loans open simultaneously, but there are strict occupancy requirements borrowers must meet.
The VA only insures loans used to buy a primary residence the borrower will live in. But an exception exists for service members ordered to relocate.
If a service member receives PCS orders during an existing VA loan term, they may be eligible for a second VA loan before selling the original home.
This allows them to buy at their new duty station while temporarily renting out the initial property until it sells. Specific guidelines must be met for this exception.
Outside of the military PCS scenario, most borrowers can’t have two concurrent VA home loans. But again, there are no lifetime limits to how many times you can reuse your VA entitlement.
You can continue leveraging your VA benefit to buy and sell homes serially over your lifetime.
Putting Your VA Entitlement to Work
Thanks to the unique structure of VA loans, eligible borrowers have tremendous flexibility. Your entitlement can be tapped over and over to help you move up the property ladder as your needs evolve.
Whether you’re purchasing a first home, moving across the country, upgrading to a larger home, buying investment properties, or refinancing – a VA loan may be the right financing solution multiple times throughout your life.
To learn more about reusing your VA home loan benefit, contact a VA-approved lender today.
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.
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.
VA Loan Secrets: What Veterans MUST Know about Using Multiple VA Loans (updated 2023)
FAQ
How many times can I use my VA loan certificate?
Can I take out a second VA loan?
Is there a limit on how many VA loans you can get?
Can I use my VA loan to buy more than one property?
Can a VA loan be used more than once?
Fortunately, a fantastic benefit of the VA loan program is the ability to purchase with no money down, meaning service members and Veterans could bypass this common barrier to homeownership. Can You Use a VA Loan More than Once? There is no maximum or limit on how many times you can use a VA loan.
How many times can you get a VA loan?
Eligible veterans and service members can get a VA loan as many times as they’d like as long as they meet certain criteria. It’s possible to have more than one VA loan at once, although requirements are different for second loans. There is no cap on the amount you can borrow on your first 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.
Can a qualified borrower use a VA loan multiple times?
“A qualified borrower could use their VA loan benefit multiple times,” said Rob Killinger, a senior loan officer with Mortgage Network, Inc., in Danvers, Massachusetts.