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 program provides great benefits to eligible veterans, active duty service members, and surviving spouses. Some of the key benefits of a VA loan include:
- No down payment required
- No monthly mortgage insurance
- Flexible credit guidelines
- Ability to reuse the benefit
A common question that comes up is whether you can have multiple VA loans open at the same time The short answer is yes, you can have more than one VA loan open simultaneously in certain situations
Understanding VA Loan Entitlement
When you get a VA loan, the Department of Veterans Affairs provides a guarantee on the loan that protects the lender if you were to default. This guarantee amount is referred to as your VA entitlement.
In most areas, VA entitlement works on two tiers:
- Basic entitlement of $36,000
- Additional entitlement of 25% of the loan amount above $144,000
So for example, on a $200,000 loan, your entitlement would be $36,000 + 25% of ($200,000 – $144,000) = $50,000.
When you have an existing VA loan, some or all of your VA entitlement is tied up in that loan. Your remaining entitlement can impact your ability to get additional VA loans.
Can You Have 2 VA Loans at Once?
It is possible to have 2 VA loans open at the same time if you meet certain criteria. The most common scenario is an active duty service member who gets PCS (permanent change of station) orders and needs to move to a new duty location.
Rather than sell their home, they opt to rent it out and use their remaining VA entitlement to purchase another home at the new duty station. As long as they qualify with a lender, this is allowed.
Having 2 mortgage payments at once can be tricky from a debt-to-income perspective. Rental income from the previous home can help offset the payment on the new home.
Can You Have 3 VA Loans at Once?
While less common, it is also possible to have 3 VA loans open simultaneously. This would likely only occur if someone had 2 existing VA loans from previous homes, then got PCS orders requiring them to move again.
They would need to verify they have enough remaining VA entitlement to cover a third loan, and also demonstrate they can handle 3 monthly mortgage payments.
Here is an example of how this could work:
- Existing VA Loan 1: $200,000 house purchased 2 years ago. Used $50,000 entitlement.
- Existing VA Loan 2: $300,000 house purchased last year. Used $75,000 entitlement.
- Total entitlement used so far = $125,000
- Maximum available in this county is $300,000
- Remaining entitlement is $300,000 – $125,000 = $175,000
If the service member is relocated to an area where the VA limit is $500,000, they could potentially qualify for a third VA loan up to $700,000 (4 x $175,000) without a down payment.
Anything above $700,000 would require a down payment. With solid renters in place and strong income, they may be able to qualify for 3 simultaneous loans.
Other Key Considerations
When considering multiple VA loans at once, here are some other important factors:
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Occupancy Requirements – All VA loans must be owner-occupied primary residences. You cannot have multiple primary residences. Renting out former homes preserves compliance.
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Entitlement Restoration – Restoration of entitlement after paying off a VA loan requires you to sell the home. One-time restoration is possible if you refinance out of the VA loan.
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Loan Assumption – VA loans can be assumed, but entitlement stays with the property. The buyer would need to substitute their own entitlement.
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Credit and Income – Qualifying for multiple mortgages requires strong credit and debt-to-income ratios. Rental income can help offset payments.
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Eligibility – You must continue meeting VA eligibility requirements to keep reusing the benefit for new loans.
The Bottom Line
While not typical, some borrowers can qualify for and manage 2 or even 3 VA loans simultaneously. This occurs most often with active duty service members who have rotating PCS orders. By renting out former homes rather than selling them, remaining VA entitlement can be reused to purchase again.
It is a complex process that depends on your specific situation. Be sure to consult with a lender who specializes in VA loans to see if this strategy will work for you. With the right circumstances, reusing your VA benefit for multiple loans can be possible.
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
How many VA loans can you have at the same time?
Can you have 3 borrowers on a VA loan?
Can I use my VA loan if I already own a house?
What is the maximum VA loan amount?
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State:
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Loan Limits Starting At:
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Link:
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Alaska
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$510,400
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See all Alaska loan limits >>
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Arizona
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$510,400
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See all Arizona loan limits >>
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Arkansas
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$510,400
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See all Arkansas loan limits >>
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California
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$510,400
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See all California loan limits >>
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Can I have two VA loans at the same time?
An experienced VA loan officer can help you get started. It is technically possible to have two VA loans at the same time. To do so, you would need enough remaining entitlement for a new loan, on top of your existing one. Generally, if you’re interested in getting a new VA loan, the best option is to pay off the original VA loan in full.
How many VA loans can you take out?
As long as you’re still eligible for a VA loan and are able to qualify with a lender, there’s no limit to how many of these mortgages you can take out over the course of your life. In fact, it’s even possible to have more than one VA loan at the same time in certain circumstances. We’ll get into that later on in the article.
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.
Can I have multiple VA loans throughout my life?
You can have multiple VA loans throughout your life, but only in certain situations, such as selling your current home and buying a new one or refinancing your existing VA loan. VA loan entitlement is the amount of money the VA will guarantee for a home loan, and it can be restored if you sell your home and pay off the loan.