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 loan is an incredibly valuable program that helps veterans active-duty service members, and eligible surviving spouses purchase a home. One of the best parts of VA loans is that they can be used more than once – there is no limit to how many times you can tap into your VA home loan benefit. This article will provide a comprehensive guide on reusing your VA loan entitlement so you can maximize this advantage to buy multiple properties over your lifetime.
What is a VA Loan?
First, let’s quickly go over what exactly VA loans are VA loans are mortgages backed by the Department of Veterans Affairs that provide favorable terms to eligible borrowers. Some of the key benefits include
- Requires no down payment
- No monthly mortgage insurance
- Low interest rates
- Relaxed credit score requirements
- No prepayment penalties
To qualify, you must have served a minimum of 90 consecutive days on active duty during wartime or 181+ days during peacetime. Honorable discharges are required. Spouses of deceased veterans may also qualify.
VA loans can be used to purchase or refinance primary residences, second homes, or investment properties. The financing can cover up to 100% of the home’s value.
Can You Use a VA Loan More Than Once?
The short answer is yes – you can reuse your VA home loan benefit multiple times over your lifetime.
There is no set maximum on the number of VA loans you can obtain. As long as you have available entitlement and meet the occupancy rules, you can tap into your VA benefit repeatedly to finance new homes. Some borrowers have even used their VA eligibility over 5+ times.
The key is understanding your remaining entitlement and how it gets restored once loans are paid off. Let’s explore this further.
How VA Entitlement Works
VA entitlement refers to the amount the Department of Veterans Affairs promises to repay lenders in case of default. This entitlement is what allows you to get a mortgage with no down payment – the VA provides a guarantee to the lender instead.
Every qualified veteran has a certain amount of entitlement based on where they live. For example, if you reside in San Francisco, you may have $815,000 in entitlement according to the 2023 VA county limits.
When you use your VA loan, a percentage of the loan amount (typically 25%) gets deducted from your total entitlement. So if you purchased a $500,000 home, approximately $125,000 of your entitlement would be used, leaving $690,000 remaining.
The wonderful part about this system is that your entitlement gets restored once loans are fully repaid. So if you pay off that initial $500,000 loan after 10 years, your full $815,000 entitlement becomes available again to purchase a new property.
This ability for full restoration is why VA loans can be reused indefinitely. Your entitlement regenerates each time a loan is closed out.
How to Use VA Loans Repeatedly
Veterans looking to tap into their VA benefits more than once have a couple options:
Sell and Purchase
The most straightforward approach is to sell your current home that has a VA loan, repay that mortgage, restore your entitlement, and utilize your benefit again to finance another property. This path allows you to fully reuse your VA eligibility.
Refi and Rent Out
Alternatively, you may want to keep your initial VA home rather than sell. In this case, you can refinance the first mortgage into a conventional loan. This frees up your VA entitlement so you can take out another VA loan for a new residence.
You can then move into the new place and rent out the original home.VA loans require you to personally occupy the dwelling, so refinancing is necessary to rent it out.
Cash-Out Refinance
Another option is doing a cash-out refinance on your current VA home. This lets you pull equity out while keeping the same mortgage. Cash raised can then assist with purchasing another property using your VA benefits.
Have Multiple VA Loans
It is possible to have two VA home loans at the same time, but there are stricter occupancy rules. Generally, this only occurs if you need to move and are purchasing a new primary residence before selling your original VA home. Special approvals may be required here.
When to Use Your VA Benefits Again
Here are some of the common situations when tapping into your VA entitlement for another loan can make strategic sense:
- Outgrowing your home and need more space
- Purchasing a second vacation / retirement property
- Relocating to a new duty station as active military
- Upgrading to a more expensive home as income rises
- Changing family circumstances like marriage, birth of a child, etc.
- Buying rental property – VA loans allow investment properties
Clearly, VA loans provide a robust and flexible benefit that can adapt as your needs change throughout life.
Alternatives to Reusing VA Entitlement
While tapping into your VA eligibility multiple times is generally wise, there may be instances where an alternative option could be better:
- Interest rates are significantly lower with conventional financing
- You need to borrow more than your available VA entitlement
- You already have 2 active VA loans and do not want to sell/refi either property
- You have access to special down payment assistance programs
Always discuss your scenario with a loan officer to determine if using your VA benefit again or an alternative mortgage solution makes the most financial sense.
The Bottom Line
VA loans provide a lifetime benefit that you can leverage repeatedly to purchase real estate with favorable terms. There is no limit set on the number of times you can reuse your VA entitlement.
As long as prior VA loans are paid off to restore your eligibility and you meet occupancy rules, you can tap into this advantage again and again as your housing needs evolve. Be sure to consider your specific situation and market conditions when deciding if pursuing another VA loan is the right move.
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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
Can I use my VA loan a second time?
Is there a limit on how many times you can use a VA loan?
Can I use my VA loan to buy more than one property?
How many VA loans can you have in a lifetime?
Can I use my VA loan more than once?
The key to using your VA loan more than once is VA entitlement. Veterans and active military members who meet the program’s service requirements have VA entitlement. VA entitlement is a specific dollar amount the VA promises to repay to a lender if the Veteran defaults on the loan.
How many times can you get a VA loan?
You can get a VA loan multiple times, but the VA funding fee —the fee the VA charges to guarantee the loan—can be higher after the first home loan, depending on your down payment amount.
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.
Can I get a VA loan if I already have one?
If you already have a VA loan, you will have reduced or partial entitlement which can affect your ability to get another VA loan and your 0% down buying power.