How Many Times Can You Use a VA Loan?

You can use a VA Loan as many times as you want, but there are a few things to consider before taking out another loan.

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Introduction

The Veterans Administration (VA) loan is a great benefit for eligible veterans, service members, and surviving spouses. But one question that often comes up is how many times you can use a VA loan.

There is no limit to the number of times you can use a VA loan. You can even have multiple VA loans at the same time. However, there are some restrictions on how you can use subsequent VA loans.

For example, if you currently have a VA loan and you want to buy another home with a VA loan, you must sell your current home first before taking out a new VA loan. You can also only have one outstanding VA loan at a time. So if you currently have a VA loan and you want to take out another one, you must first pay off your current loan before taking out a new one.

There are also limits on how much money you can borrow with a VA loan. The maximum amount you can borrow depends on the county in which the property is located and whether it is for your primary residence or not. For more information on these limits, please see ourarticle on How Much Can I Borrow with a VA Loan?

If you are planning on using a VA loan to purchase a home, it is important to work with a licensed lender who is familiar with the program and can help guide you through the process.

How the VA Loan Process Works

The VA loan process is simple, straightforward and fast. Once you’re approved for a VA loan, the process of getting a home loan is much like any other mortgage. But there are a few key differences that make the VA loan process unique.

For one thing, you don’t need to get private mortgage insurance (PMI) with a VA loan. PMI is insurance that protects the lender if you default on your loan. With a VA loan, the government basically guarantees the loan, so there’s no need for PMI.

Another key difference is that you can get pre-approved for a VA loan before you start shopping for a home. That way, when you find the perfect place, you can make an offer right away without worrying about getting approved for financing.

The final key difference is in the closing process. With a VA loan, the seller can pay some of your closing costs, up to 4% of the purchase price of the home. This can help reduce your out-of-pocket expenses at closing and make it easier to afford your new home.

How to Qualify for a VA Loan

You may be eligible for a VA Loan if you are:
-A veteran, active duty service member, or National Guard or Reserve member
-Eligible surviving spouse of a veteran
-A reservist called to active duty after September 11, 2001
-A person who has been determined to have a service-connected disability by the Department of Veterans Affairs

If you are not sure if you are eligible for a VA Loan, you can check your eligibility status here.

In order to qualify for a VA Loan, you will need to obtain a Certificate of Eligibility (COE). You can get your COE through your lender, or you can get it yourself through the Veterans Administration. If you are applying for a VA Loan through a lender, they will usually help you obtain your COE.

If you want to get your COE yourself, you can do so by filling out the VA Form 26-1880 and submitting it to the VA. You will need to provide proof of your service, such as your DD214 form if you are a veteran, or your orders if you are currently on active duty.

The Funding Fee

The funding fee is a percentage of the loan amount that the Veteran’s Administration collects to help defray the costs of VA-guaranteed home loans.

First-time use of the VA loan program requires payment of a 2.15% funding fee for regular military borrowers, or a 2.4% funding fee for reservists and National Guard members. During subsequent uses of the VA loan program, the funding fee declines to 1.25%.

The good news is that the funding fee can be rolled into the total loan amount, so borrowers don’t have to come up with the cash at closing.

The VA Loan Limit

There is no limit to how many times you can use your VA entitlement. However, there are a few things that may impact your ability to get another VA loan in the future.

The first is the VA loan limit. The maximum guarantee that the VA will provide for a loan is $453,100 (this amount changes annually). So, if the loan you are looking to get is above this amount, you will need to make a down payment for the difference. For example, if you are looking to purchase a home for $500,000 and you have used your entitlement already, you would need to make a down payment of $46,900 ($500,000 – $453,100 = $46,900).

The second thing that may impact your ability to get another VA loan is your credit score and debt-to-income ratio (DTI). In order for a lender to give you a loan, they will want to ensure that you can afford the payments. So, if your credit score has gone down or your DTI has increased since you got your last VA loan, it may be more difficult to qualify for another one.

Mortgage Insurance

If you’re a veteran or active military member, you may be eligible for a VA loan. VA loans offer several benefits, including no down payment and no private mortgage insurance (PMI). However, there are limits on how many times you can use a VA loan.

In general, you can only use a VA loan once. However, there are some circumstances where you may be able to get a second VA loan. For example, if you sell your home and use the proceeds to pay off your first VA loan, you may be eligible for another VA loan. You may also be eligible for another VA loan if you refinance your first VA loan.

If you’re thinking about getting a second VA loan, make sure to talk to a qualified lender to see if you qualify.

The Bottom Line

If you’re a veteran of the armed forces, you may be wondering how many times you can use a VA loan. The good news is, there’s no limit! You can technically use your VA loan benefits as many times as you want. However, there are a few things to keep in mind if you’re thinking about getting a VA loan more than once.

For one thing, you’ll need to sell your previous home before taking out another VA loan. Additionally, the Department of Veterans Affairs (VA) has a rule that limits the amount of money you can borrow if you’ve already used your VA loan benefits in the past. This rule is known as the “entitlement,” and it’s based on the amount of your original loan.

Basically, if you’ve already used your VA loan benefits and then try to get another VA loan, your entitlement will be reduced by the amount of your first loan. So if you originally borrowed $200,000 and then sold that home and tried to take out another VA loan, you would only be able to borrow up to $160,000.

There are some exceptions to this rule, however. If you paid off your first VA loan early or if the home was sold for more than its appraised value, you may be able to restore your full entitlement. You can also restore your full entitlement by making a down payment on your new home.

If you’re thinking about taking out a second VA loan, it’s important to talk to a lender who can help determine if it makes sense for your situation. They can also help you understand the rules around entitlement and how it may affect your ability to borrow money in the future.