How Many Times Can You Use a VA Home Loan?

The VA home loan program provides an invaluable opportunity for eligible veterans, active duty service members, reservists, and surviving spouses to purchase a home with no down payment required. This makes homeownership significantly more accessible and affordable.

But a common question that often comes up is “how many times can I use a VA loan?” The good news is, there’s no limit to how many times you can use a VA home loan throughout your lifetime. As long as you still have remaining entitlement, you can keep tapping into the VA loan program when buying future homes.

In this comprehensive guide, we’ll cover everything you need to know about using a VA loan multiple times, including:

• What VA loan entitlement is and how it works
• When your entitlement gets restored
• How reduced entitlement affects additional VA loans
• Tips for maximizing your eligibility

What Is VA Loan Entitlement?

Entitlement refers to the amount of the loan that the Department of Veterans Affairs will guarantee. For lenders this guarantee provides reassurance that the VA will step in to cover a portion of the unpaid loan balance if the borrower defaults.

The VA determines the maximum amount they’ll guarantee based on the conforming loan limit for each county across the US, as established by the Federal Housing Finance Agency.

For 2024 the baseline VA entitlement is

• Up to $36,000 for loans under $144,000
• Up to 25% of the loan amount for loans exceeding $144,000

So if you qualify for the full entitlement amount, you won’t have any restrictions on how much you can borrow with a VA loan or any requirement to make a down payment, even on jumbo loans over $484,350 in most counties

When Does Your VA Entitlement Get Restored?

In most cases, veterans who have paid off their prior VA loan and sold the home will have their full entitlement restored. This allows them to utilize the VA home loan benefit again for another purchase.

Entitlement also gets replenished if you had a VA foreclosure or compromise claim (short sale) in the past and have fully repaid what the VA paid out on your claim.

Finally, the VA offers a one-time restoration of entitlement for borrowers who still own their previous home purchased with a VA loan. To qualify, you must have either:

• Fully paid off the VA mortgage

Or

• Refinanced into a non-VA loan

This restoration can only be used once, so be strategic in choosing the best time to request it.

How Does Reduced Entitlement Affect Additional VA Loans?

If you still have an existing VA loan that you’re paying off, your entitlement will be less than the full amount when applying for another VA mortgage. The same applies if you still own a prior home bought with a VA loan.

In these cases, the maximum entitlement amount will be based on your county’s conforming loan limit, minus any entitlement already being used by your current or previous VA loan.

• For example, if you have an active VA loan of $250,000, 25% of that amount ($62,500) is tied up in entitlement being used. If your county limit is $766,550, your remaining entitlement would be $191,637.50 – $62,500 = $129,137.50.

• To find the maximum loan amount you can get without a down payment, multiply the remaining entitlement by 4. In this case, $129,137.50 x 4 = $516,550.

• If you purchase a home costing more than your entitlement will cover, you’ll need to pay at least 25% of the excess amount as a down payment.

The good news is you can always tap into your VA entitlement again in the future after selling the current home and paying off the VA loan.

Tips for Maximizing Your Lifetime VA Loan Eligibility

Here are some key tips to keep in mind to optimize your ability to use the VA home loan program:

• Consider refinancing to a non-VA loan – This can free up your entitlement for reuse, as long as you apply for the one-time restoration. Just be sure the terms make sense.

• Buy within your remaining entitlement – This allows you to avoid tying up additional entitlement or making a down payment.

• Prioritize selling your previous home – To replenish entitlement, you’ll need to sell the property and pay off the VA loan in full. Renting out properties long-term reduces reuse.

• Request entitlement restoration ASAP – File the request immediately after paying off your VA loan to expedite approval.

• Compare multiple lenders – Shop around to find the best VA loan rates and terms to maximize savings.

• Consider a lower-cost market – Opting for less pricey areas can help you fully leverage your entitlement.

• Improve your credit – A higher credit score expands your purchasing power and loan amount eligibility.

The Bottom Line

The VA home loan program offers invaluable benefits to eligible borrowers, especially the opportunity to buy a home with zero down payment. Veterans can use this perk for multiple purchases over a lifetime.

While reduced entitlement or outstanding VA loans can limit eligibility without a down payment, strategic planning allows veterans to continue reusing their VA loan benefit to maximize buying power.