Can You Have More Than One VA Home Loan?

The VA home loan program provides an incredible opportunity for eligible veterans, active-duty military members, reservists, and surviving spouses to purchase a home with no down payment. Thanks to the VA loan guarantee, borrowers can get 100% financing and avoid the burden of private mortgage insurance (PMI).

But can you get more than one VA mortgage over your lifetime? Or even have two VA loans at the same time?

The short answer is yes – with some caveats. 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.

Let’s take a closer look at how VA entitlement works when getting multiple loans and discuss some common scenarios for repeat VA borrowers.

Understanding VA Entitlement

VA entitlement refers to the amount of your loan that the VA guarantees. This guarantee enables lenders to provide VA loans with no down payment no monthly mortgage insurance and frequently at lower interest rates.

Each eligible borrower has a certain amount of entitlement they can use to back their loan. Here are some key facts about VA entitlement:

• The basic entitlement is $36,000. This allows eligible borrowers to get a VA loan for up to $144,000 before needing a down payment.

• There is also “bonus” entitlement of $144,000, allowing for loans up to $580,000 with no down payment in most US counties.

• Entitlement is restored once you pay off your VA loan, such as through selling the home or refinancing to a non-VA loan.

• Entitlement can be reused for another VA purchase. There is no lifetime limit.

• You can have multiple VA loans open at the same time using remaining entitlement from the first purchase.

• Defaulting on a VA loan causes you to lose available entitlement, which must be restored before getting another VA mortgage.

Now let’s walk through some common scenarios to see VA entitlement in action across multiple loans.

Getting a Second VA Loan After Selling Your Home

The simplest way to get another VA loan is to sell your current home that you purchased with a VA mortgage. This pays off your existing loan and frees up your full entitlement to be applied to a new property.

For example:

• You get a VA loan for $300,000. The VA guarantees 25% of this amount, or $75,000 against default. This uses $75,000 of your total $180,000 entitlement.

• You sell the home for $325,000, paying off the mortgage. Your $75,000 of entitlement is now restored.

• You can now purchase a second home for up to $360,000 with your full entitlement available.

The key is selling the home to free up your entitlement. As long as you qualify with income, credit, and other VA loan requirements, the process of getting another VA mortgage is straightforward.

Keeping Your Home and Using Remaining Entitlement

What if you want to keep your current home and purchase another property to move into? This is possible with VA loans, but requires careful planning around your remaining entitlement.

Let’s use the same example:

• You purchase your first home for $300,000 using $75,000 of your total $180,000 entitlement. You have $105,000 leftover.

• You want to keep the first home as a rental and buy a new primary residence.

• With your remaining $105,000 entitlement, you can get another VA loan for around $420,000 before needing a down payment.

• If you want to buy a more expensive home, you’d need to pay at least 25% of the amount above $420,000.

The key is factoring in your remaining entitlement when determining how much you can borrow with a second VA loan if keeping your initial home. A lender can help run the numbers to see how much house you can get before a down payment is required.

Using Entitlement After a VA Loan Foreclosure

Unfortunately, sometimes VA borrowers lose their home to foreclosure. The good news is this doesn’t necessarily prohibit you from using the VA loan benefit again.

Here’s an example of how entitlement works after foreclosure:

• You bought your first home with a $240,000 VA loan, using $60,000 of entitlement.

• Due to financial hardship, you end up losing the home in foreclosure. Your entitlement used for that loan is lost.

• After a 2 year waiting period, you can apply for another VA loan. But you now only have your basic $36,000 entitlement.

• You can get a new VA mortgage, but only for around $144,000 before you’ll need a down payment.

The key is that entitlement tied up in a foreclosed VA loan is no longer available. You lose that portion, typically requiring a down payment on your next VA purchase.

However, some lenders offer “foreclosure forgiveness” that can restore your full entitlement in certain hardship scenarios. Talk to a lender to see if you qualify.

Having Two VA Loans at the Same Time

What if you’re active duty military and receive orders to move bases? Selling your home that quickly can be difficult.

That’s where concurrent, or overlapping VA loans come into play. By using your remaining entitlement, it is possible to have two VA-backed mortgages at the same time under certain conditions:

• You have sufficient entitlement left from your first purchase to support a second VA loan.

• You occupy the new home as your primary residence.

• You usually need to rent out the prior home temporarily until you can sell it.

• Lenders will want to see you can make both mortgage payments.

While this situation does happen, it requires careful planning around your entitlement plus factoring in two housing payments each month. Talk to an experienced VA lender to explore whether this strategy could work for your family.

Key Takeaways on Multiple VA Loans

Getting more than one VA loan over time can be an excellent way to maximize your earned benefits across multiple homes. Here are some key tips on having multiple VA mortgages:

• There is no limit to the number of times you can use the VA loan.

• Selling your home restores your full entitlement for reuse.

• Keeping your home requires tapping into remaining entitlement for the new purchase.

• Losing a home to foreclosure causes you to forfeit associated entitlement.

• Concurrent VA loans are possible but require renting out the first home.

• Work with an experienced VA lender to discuss your specific situation.

While every situation is unique, the VA home loan benefit is designed to be flexible enough to serve you across multiple purchases if you qualify. Be sure to consider current rates, your financial position, and goals to make the most of this hard-earned program across your lifetime.

Frequently Asked Questions on Multiple VA Loans

Below are answers to some common questions on getting more than one VA mortgage:

Can I get a second VA loan?

Yes, as long as you still meet basic VA loan requirements, you can get a second VA loan after selling your previous home or using remaining entitlement if keeping that property. There is no limit.

Can I have two VA loans at the same time?

It is possible to have two overlapping VA loans, but requires you occupy the second home and have enough entitlement leftover from the first purchase. Renting out the initial home is usually necessary in this scenario.

How much entitlement do I get?

The basic entitlement is $36,000. There is also “bonus” entitlement of $144,000. This provides for loans up to $144,000 and $580,000 with no down payment, respectively. Entitlement is restored when you sell the home.

What if I lost my home to foreclosure?

If you lose your home in foreclosure, any entitlement used for that loan is forfeited. After a 2 year waiting period, you can get another VA loan but will likely need a down payment without the full entitlement.

Is there a limit to how many VA loans I can get?

There is no limit to the number of VA loans you can obtain over your lifetime. As long as you still qualify and have sufficient entitlement available, you can continue using the program to buy or refinance.

Explore Your VA Loan Benefits

The VA mortgage provides incredible home financing options – on your first home and beyond. If you’re looking to purchase again or refinance, be sure to get guidance from a VA-approved lender on how to maximize your benefits across multiple loans. They can walk through your specific entitlement, loan amounts, and eligibility to help craft a personalized mortgage solution.