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.
If you’re a veteran or active military service member, you likely know that VA home loans offer amazing benefits like no down payment and no private mortgage insurance requirements. But did you know that you can use your VA loan benefit more than once? In fact, there’s no limit on how many times you can take advantage of a VA mortgage. I’ll walk through all the details in this comprehensive guide on reusing your VA home loan entitlement.
What is VA Loan Entitlement?
VA loan entitlement refers to the amount the Department of Veterans Affairs will guarantee on your behalf. All qualified VA borrowers have access to a certain dollar amount of entitlement that varies based on where they live.
When you use a VA loan, the VA provides a guaranty to the lender – essentially promising to repay a portion of the loan if you default. Typically the VA guarantees 25% of the total loan amount.
So if you qualify for $100,000 in entitlement and purchase a $400,000 home, you’ll have $25,000 in entitlement tied up in that first loan. This leaves $75,000 remaining that could be applied to another VA mortgage in the future.
Can I Use a VA Loan More Than Once?
Yes! The amazing benefit of VA home loans is that they are reusable Veterans and service members can tap into their lifetime home loan benefit multiple times
As long as you have remaining entitlement, you can generally keep using VA loans again and again when buying or refinancing a home. There is no maximum limit set by the VA on how many times you can reuse this benefit.
In fact, Veterans United has even helped some borrowers complete their 9th VA loan over the years. It’s an extremely valuable lifetime benefit.
Restoring Your Full Entitlement
Now let’s discuss how you can restore your full entitlement after purchasing your first home.
For example, let’s say you used $80,000 of your total $100,000 entitlement on an initial VA mortgage. A few years later, you sell that home and pay off the loan. At this point, you could file VA Form 26-1880 to have your full $100,000 entitlement restored.
This allows veterans who sold their first home to once again “max out” their VA benefit on another purchase. Since there’s no down payment required, borrowers with full entitlement restored can obtain a new VA mortgage for the full loan amount approved by their lender.
Just make sure your previous VA loan is paid in full and submit proof the home was sold. The VA will then process your restoration of entitlement claim.
Using Remaining Entitlement
Another option is to tap into your remaining entitlement while keeping your first home.
For example, you used $50,000 of your $100,000 benefit on your initial purchase. That leaves $50,000 in remaining entitlement. In certain scenarios, a Veteran can utilize that leftover amount to buy a second home as their family grows or they receive military orders.
The VA generally allows borrowers to have two VA loans at the same time. However, there are eligibility requirements around occupancy that come into play if seeking to retain that first property.
For a deep dive on how remaining entitlement works, read this VA loan guide.
Special Scenarios
Here are a few other unique cases when it comes to reusing the VA loan benefit:
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Divorce: If you and your spouse divorce, the spouse who retains ownership of the home (or is ordered to pay the mortgage) must qualify on their own to assume the loan. If not, they may need to sell the home or refinance into their own name. This can allow the other spouse to restore their full VA entitlement separately.
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Ex-Spouse Assumption: In some cases, an ex-spouse may be allowed to assume the existing VA mortgage on their own and make payments. However, if they default down the road, the original veteran borrower could lose entitlement.
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Refinancing: Veterans can refinance their existing VA loan into either a new VA loan or conventional loan product. If you choose a VA streamline refinance, you will not impact your overall entitlement.
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Co-Borrowers: If you originally purchased with a co-borrower, their entitlement is also tied up in the home until the loan is paid off. This must be considered when reusing benefits in the future.
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Surviving Spouses: Unmarried surviving spouses of eligible veterans may also have access to VA home loan benefits. Make sure to check on the restoration process for surviving spouses.
Steps to Reuse the VA Loan Benefit
If you’re hoping to tap into your VA benefit again, follow these key steps:
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Sell and pay off your prior VA loan: If selling the home, submit your COE restoration paperwork once the loan is paid off and home is sold.
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Check remaining entitlement: If keeping first home, confirm you have sufficient entitlement left for another purchase
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Get pre-approved: Work with a lender to get pre-approved based on your income, assets, credit and entitlement.
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Make an offer: Move forward with making an offer on your new home once pre-approved.
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Close on the purchase: You can finalize the new purchase once all VA loan requirements are met.
The VA Loan Experts Can Guide You
The process of reusing your hard-earned VA home loan benefit doesn’t have to be complicated. Lean on expert VA lenders to walk through the options.
Veterans United has helped over 1 million veterans and military buyers nationwide. Their VA loan specialists can answer any questions on maximizing this lifetime benefit when you’re ready to buy, refinance or tap into your VA mortgage perks again.
The bottom line is veterans and service members can reuse VA home loans many times over. As long as you have remaining entitlement, keep enjoying your earned benefits. And work with specialists who can restore your full eligibility when needed. The VA mortgage truly is a lifetime gift for eligible borrowers.
How Many Times Can You Use a VA Loan?
There’s no limit on how many times you can use your VA loan benefit. As long as you’re eligible according to the VA’s rules, the only restriction is your remaining entitlement. If you’re eligible for a VA loan, you’ll receive your entitlement, a specific amount guaranteed by the Department of Veterans Affairs.
Thus, how many times you can use a VA loan depends on whether or not you have full or partial entitlement. Even then, having partial entitlement won’t prevent you from using your VA loan a second time, but it may come with a down payment requirement.
Before using your VA benefit, we recommend learning how to get a VA loan to ensure you understand the process. Every time you use your VA loan, you’ll have to meet the various requirements of your lender and the VA.
Griffin Funding is dedicated to providing our veterans with unparalleled service and the most favorable terms.
Your entitlement is what the VA will pay to the lender if you default on your loan and is up to 25% of the total loan amount if you have your full entitlement. If you don’t have your full entitlement, the VA will guarantee part of the loan, and you may be responsible for providing a down payment to cover the 25% of the loan.
Full entitlement is the maximum amount the VA will guarantee the lender if you default on the loan and equals 25% of the loan amount. Full entitlement is crucial if you want to keep using your VA loan benefit without making a down payment. You have your full entitlement if you’ve never used your VA loan before, and you can restore full entitlement multiple times throughout your life, but it ultimately depends on whether you’ve paid off the loan and sold the property.
If you haven’t used your VA entitlement yet, read these first-time home buyer VA loan tips to learn more about the process.
Partial entitlement is when you’ve already used your VA loan, and your full entitlement hasn’t been restored. Someone may have partial entitlement if they:
- Are currently repaying the VA loan
- Fully repaid a VA loan but still own the home
- Refinanced the VA loan into a conventional or non-VA loan
- Get their home foreclosed
You can use the VA loan as many times as you want throughout your life as long as you have remaining entitlement. For example, if you’ve already purchased a home using your VA entitlement and haven’t paid off the loan and sold the home, you may still have partial entitlement that you can use to qualify for a loan. However, you may be required to make a down payment if the entitlement doesn’t cover 25% of the loan value.
The VA uses local conforming loan limits to determine whether your remaining entitlement will cover the 25% guarantee. Let’s look at an example in which you’ve already used $150,000 of your entitlement, and it hasn’t been restored. You’re interested in purchasing a property worth $250,000 in a location with a conforming loan limit of $766,550.
First, the VA will calculate 25% of the loan limit before subtracting your used entitlement. In this case, the equation will look something like this: 766,500 x 0.25 – 150,000 = $41,625.
Next, they’ll determine 25% of the total loan amount: $250,000 x 0.25 = $62,500
The VA will take the lesser amount, guaranteeing $41,625 of the loan. However, since you’ve already used your VA loan, you’ll be responsible for a down payment of $20,875 (62,500 – 41,625) to cover the 25% guarantee on the loan.
There are two types of VA loan entitlement: basic and bonus. Every eligible borrower is entitled to the basic entitlement of $36,000 based on the average home price of $144,000, and the VA allows you to borrow up to four times that amount. The bonus VA entitlement is similar but covers 25% of a home price above $144,000, so if you need a larger loan amount, you’ll use the bonus entitlement.
There’s no maximum loan amount for VA loans. Therefore, as long as you have full entitlement, the VA will guarantee up to 25% of your loan.
How Many Times Can a Veteran Use Their VA Home Loan Benefit?
FAQ
Can you use VA loan multiple times?
How long do I have to wait to use my VA loan again?
Can I take out a second VA loan?
Is there a limit on how many VA loans you can get?
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.
Can you take out two VA home loans at once?
Generally, you can’t take out more than two VA home loans at once, as you’re supposed to reside or have resided in a home to take out a VA mortgage. This can happen when selling one home to buy another, or if keeping one home and then buying a home when assigned to a different military base.
Can you use a VA loan if you buy a home?
If you qualify, you can use VA loans throughout your lifetime, no matter how many primary homes you buy. But there are rules to keep in mind. For starters, you can only use a VA loan to purchase or refinance your main residence, Parker says.
What are VA loan limits?
The VA loan limits help determine how much Veterans with diminished VA loan entitlement can borrow before needing to make a down payment. Veterans with their full entitlement can borrow as much as they can afford, all without a down payment.