There’s no restriction on how many times you can use your VA loan. In 2024, VA loan limits have increased and are now at $766,550. If you’ve used this loan, you must be aware of its perks, such as its low interest rate, credit score, and no down payment.
Do you wish to leverage these benefits again? Even if you already have a VA loan, obtaining a second one is possible. You can also use your leftover loan entitlement amount from a previous loan for a new home.
Get a mortgage preapproval to know how much you can afford.
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New Home Purchase
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🏡 Benefits of VA Home Loan
- The acceptable debt-to-income ratio for VA loans is 41%, but if it exceeds that, lenders might consider residual income.
- Lenders make decisions on VA loans based on their rules, and the VA home loan guarantee covers 25% of the total amount owed.
- The VA can set restrictions on closing costs that veterans must pay during the closing process.
How Many VA Loans Can You Have?
You can use a VA loan multiple times. These loans can only be used for primary homes. You cannot utilize VA loans for properties intended for non-residential purposes.
Can You Have Multiple VA Loans at the Same Time?
Yes, at one time, you can have two VA loans. However, eligibility for a second loan depends on various factors, including your remaining entitlement and the loan amount.
In case you need more than the home loan limit, you may want to look into refinancing the mortgage on the first home to a conventional loan and then using the VA loan for the second home.
Veterans can consult with the Department of Veterans Affairs or their lenders to determine the specific conditions and eligibility criteria for obtaining multiple VA loans at once.
Eligibility for VA Loans
Veterans Affairs has different eligibility criteria for VA loans, here are some of them.
- You have served at least 90 consecutive days of active service during wartime.
- At least 181 days of active service during peacetime.
- You have served more than 6 years with the National Guard or Reserves, or 90 days under Title 32 with a minimum of 30 consecutive days.
- You’re the spouse of a service member who lost their life in the line of duty or as the result of a service-related disability.
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👉 How Do You Prove Your Eligibility for a VA Loan? A Certificate of Eligibility from the Department of Veterans Affairs is normally required to demonstrate your eligibility for a VA loan. A COE is available via the VA’s eBenefits portal.
How do I Apply for Another VA Loan?
To apply for a second VA mortgage, follow these steps:
- Assess your eligibility: Before choosing a mortgage, confirm eligibility by ensuring remaining VA entitlements and meeting service criteria.
- VA certificate of eligibility: Apply online through the eBenefits portal or a VA-approved lender. It will provide you with a certificate of eligibility to confirm a second VA loan.
- Select an approved lender: Find a lender who can guide you through the loan application process and meet their requirements.
- Closing and funding: After loan approval, schedule a closing to sign essential documents. Once the lender releases funds, you’ll become the new property owner with your second loan.
What is a VA Loan Entitlement?
In a VA Loan Entitlement, a percentage of your loan amount serves as the VA’s guarantee to your lender in case you default on payments. The entitlement varies based on military service, loan limit, and whether it’s the first or subsequent use of the loan benefit. These entitlements include:
Full Entitlement
Full entitlement refers to the highest guarantee amount the VA offers qualified veterans for their home loans, which is 25%. For example, if a veteran qualifies for a full entitlement on a $200,000 mortgage, the VA would guarantee $50,000 (25% of $200,000).
Partial Entitlement
Partial entitlement refers to a situation where a veteran has already used a portion of their available entitlement on a previous mortgage and is seeking another VA loan. The remaining entitlement is considered partial.
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👉 If You Run Out of Basic Entitlement? You can opt for the bonus entitlement. It is an extra guarantee for veterans who’ve used all their entitlements, allowing them to activate it for the chance to secure an additional VA loan.
Bottom Line
There is no set limit on how many times you can use a VA loan in your lifetime. However, there are some qualifying requirements, such as meeting the minimum credit score, DTI ratio, etc.
Taking a VA loan as compared to a primary loan is quite beneficial. With this loan, you can secure competitive interest rates and benefit from the advantage of a zero down payment. Overall, it makes home buying accessible and convenient for you.
Frequently Asked Questions
Can I use a VA loan more than once?
Yes, it is possible to utilize your VA loan more than once. However, eligibility for a second loan depends on various factors, including your remaining entitlement and the loan amount.
Is there a waiting period between using VA loans?
There is no waiting period. Once more meeting the eligibility requirements, you can submit an application for a VA loan.
Are there any restrictions on the properties I can purchase with VA loans?
VA loans are meant for primary residences. You cannot use VA loan to purchase vacation homes, investment properties etc.
