How many times can you use a VA loan? Scenarios and more

How many times can you use a VA loan?

Many veterans think the answer to this question is one time, but that's not true. VA home loan benefits can be used, recharged, and used again.

In fact, some borrowers can use their VA entitlement to secure more than one loan at a time.

Understanding how the VA home loan program works can help veterans and active duty service members get the most out of this powerful benefit. 

How many times can I use a VA loan?

VA loan benefits can be used repeatedly, a fact that surprises many veterans who assume the benefit works only for their first home.

The VA home loan program can be used repeatedly because of the way the program works. The borrower's VA loanentitlement isn't spent. Instead, it insures the lender that issues the mortgage loan. Then, after the homeowner pays off the loan, they restore the entitlement to use again on a different loan.

This insurance is what allows lenders to issue loans with no down payments and no private mortgage insurancepremiums.

...in as little as 3 minutes – no credit impact

How many VA loans can you have at once?

Many borrowers don't use their full entitlement on their first VA loan. These borrowers retain enough entitlement to help guarantee a VA loan on a second home. 

This feature is especially helpful for military families facing Permanent Change of Station orders. This feature allows active duty military members to buy a new home in a new location without selling their first home. 

Depending on how much entitlement remains and how much the new home costs, second home buyers may have to make down payments. First VA loans require no money down.

Better's digital-first VA mortgage process removes the mystery for veterans who want to know where they stand in the borrowing process. 

Available entitlement drives loan options 

Veterans can qualify for second VA loans when their first home purchase used only part of their entitlement. This can happen when the first home costs a lot less than the conforming loan limit which is currently set at $806,500.

For example, if a family used a VA loan to finance a $250,000 home in one city, they should have enough entitlement left to finance another similarly priced home in the new location.

Even if the family surpasses its level of entitlement, the loan may still go through if the buyers put enough money down to lower the amount financed.

Primary residence requirement applies to every VA loan

Even when borrowers have enough entitlement to ensure a new loan, another VA rule may still come into play. Like other government-insured mortgage programs, the VA program works only for financing new primary residences. 

Because of this residency requirement, vacation homes, investment properties, rental homes, or any other home the borrower won't live in full-time, can't be financed.

Veterans who want to convert a VA-financed primary residence into a vacation home or rental property can refinance that home into a conventional loan.

Refinancing the home out of the Va program will also free up more VA loan entitlement for the borrower's next primary residence. 

...in as little as 3 minutes – no credit impact

 

What is VA loan entitlement, and how does it work?

Entitlement serves as the foundation of the VA loan benefits current and former military members earn. It's the dollar amount the Department of Veterans Affairs pledges to guarantee on your behalf.

This guarantee protects lenders from losing money on the loan. This protection allows lenders to underwrite loans with no down payments and no mortgage insurance. This paves an easier path to homeownership for veterans, active duty service personnel, and some surviving spouses of service members who died in the line of duty.

How does VA loan entitlement work?

Your Certificate of Eligibility (COE) for the VA loan program will list the amount of your entitlement. But the numbers on this document can be confusing. For example, if you've never used a VA loan before, your COE should show you have your full entitlement of $36,000. 

This isn't the amount of money you can borrow. Instead, it's the amount of money the VA will pay the lender if you failed to repay a mortgage loan of $144,000 or less.

What about homes that cost more than $144,000? For borrowers with full entitlement, the VA will repay 25 percent of the loan balance up to the maximum loan size in the county where the home is located. In most counties, the maximum loansize is $806,500 which means the VA will guarantee up to $201,625. 

This VA guarantee, which is a form of mortgage insurance, makes the VA loan program work. By guaranteeing the lenderwon't lose money, the VA empowers lenders to approve home loans even when borrowers pay no money down and no private mortgage insurance (PMI).

When can you reuse your VA loan or get a second one?

VA-eligible borrowers can re-use their entitlement when they:

Pay off their previous VA loan

Selling your home and paying off your VA loan clears the path to restore full entitlement.

Restoration of entitlement doesn't happen automatically, though. After paying off or refinancing the first VA loan, the borrower has ask the Department of Veterans Affairs to restore the entitlement. 

Specifically, you'll submit VA Form 26-1880 to the Department of Veterans Affairs, requesting complete entitlement restoration. Once approved, you receive a fresh Certificate of Eligibility (COE) showing your restored entitlement, ready for your next VA loan benefit at maximum capacity.

This process appeals to veterans who've outgrown their current home or want to relocate permanently. Full restoration means you start fresh, with no restrictions, no partial entitlement calculations, just your complete benefit ready to work again.

Have remaining entitlement left over

When VA-eligible borrowers don't use all of their entitlement at one time, they can use their remaining entitlement to secure a second home loan.

For example, let's say a Naval chief petty officer on active duty service buys a $400,000 home in Maryland. This home uses $100,000 of the borrower's entitlement. Then the officer gets a PCS to Texas.

This borrower still has about $100,000 entitlement unused, meaning they could buy another $400,000 home with no money down without having to sell the Maryland home first. This is how VA borrowers can hold multiple VA loans at one time.

Keep in mind that in high value real estate markets like New York City, San Francisco, and Seattle, conforming loan limits are higher, so VA loan entitlements are higher, too.

What you should know before reusing your VA loan

Using your VA loan benefit more than once extends the value of this powerful benefit.

But entitlement isn't the only factor that sets a home buyer's borrowing power. VA eligible home buyers should also know that:

Qualifying is still required

If the borrower can't afford to make payments on a second VA loan, the lender won't approve it, even if the borrower has enough entitlement.

In other words, VA entitlement sets the ceiling for borrowing power, and it's a generous ceiling. But the borrower still needs their own credentials to reach that ceiling. Your current credit score, debt-to-income ratio, and income stability set your loan size within the VA loan limits.

It's best to seek VA loan pre-approval before shopping for new homes. That way you'll know your borrowing power before shopping for homes. 

Closing costs and fees still apply

VA loans require no money down and no monthly. mortgage insurance fees, but they do charge upfront costs, including: 

The VA Loan Funding Fee. This 2.15 percent upfront fee helps cover the cost of the loan program. 2.15 percent means $6,450 on a $300,000 loan. After the first loan, the fee increases to 3.3 percent. Funding Fees are lower on the VA's Streamline Refinance, known as the VA IRRRL. 

Other closing costs must be paid

VA loan borrowers still pay typical closing costs such as appraisals, loan origination fees, and title insurance fees. The Department of Veterans Affairs caps how much private parties can charge in fees. 

Closing costs tend to be much lower for the VA Streamline Refinance loan program which can often skip the appraisal and other fees.

The new home must be a primary residence

VA loans restrict use to primary residences only. This owner-occupancy requirement applies to every VA loan. Borrowersmust move into the property within 60 days of closing and occupy it as their main home for at least one year.

Vacation homes and pure investment properties don't qualify for VA financing, regardless of your available entitlement.

Reusing VA loans FAQs

Questions about using your VA loan benefit multiple times? These answers address the most common concerns veteranshave when exploring additional VA loans.

Are VA loans assumable?

Yes, VA loans are assumable, allowing another eligible buyer to take over your existing loan terms and interest rate. The new buyer doesn't need to have veteran status, but when someone assumes your VA loan, your entitlement stays tied to that property until the loan is paid off.

If the new buyer is also VA-eligible and substitutes their entitlement, the original owner can restore their full entitlement. This process requires lender approval and a release of liability from the VA.

What if your current VA loan isn't paid off, but you want to buy a second home?

You'll need enough remaining entitlement to cover both homes. Check your Certificate of Eligibility to determine your available entitlement. The new property must be your primary residence. 

Does a VA loan work differently the second time?

The main difference is the funding fee increase. Most repeat loan borrowers pay a 3.3 percent fee instead of the 2.15 percent fee for first-time use. Otherwise, the qualification process, interest rates, and loan terms remain largely the same. 

How many times can I use my VA loan benefit?

There is no limit to how many times you can use your VA loan benefit throughout your lifetime. You can reuse it multiple times, provided you restore your entitlement after each use or have sufficient remaining entitlement available – and provided you have the income and credit history to get approved.

Can I have more than one VA loan at the same time?

Yes, it's possible to have multiple VA loans simultaneously if you have enough remaining entitlement. This often occurs when you've only partially used your entitlement on your first home or when you receive Permanent Change of Station (PCS) orders.

What happens to my VA loan entitlement if I lose a home to foreclosure?

Even after experiencing foreclosure on a previous VA loan, you can potentially obtain another VA loan after a waiting period, typically two years. However, you'll need to check your remaining entitlement and meet current qualification requirements.

Do I need to sell my current home to use my VA loan benefit again?

Not always. If you have remaining entitlement, you may be able to use it for a second home while keeping your current property. However, the new property must become your primary residence, meeting owner-occupancy requirements.

Check your entitlement, then get a preapproval

The VA loan benefit offers lower rates and more flexibility than most veterans realize. This powerful homeownership tool can be recharged and reused. Many veterans have enough entitlement to insure multiple mortgage loans at the same time.

Checking your available entitlement should be your first step when considering whether to take out another VA mortgage. If you have enough entitlement, you're eligible to keep using the VA loan program.

After that, getting preapproved will show how much your lender is willing to approve and how much the payments would cost for the loan. 

...in as little as 3 minutes – no credit impact