You can use your VA home loan benefits multiple times, but there are a few things to consider before taking out another loan.
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If you’re a qualified veteran, you may be wondering how many times you can use your VA home loan benefits. Fortunately, there’s no limit to how many times you can use your VA loan as long as you continue to meet the eligibility requirements. In this article, we’ll go over some of the key details about using your VA home loan benefits multiple times.
How many times can you get a VA home loan?
You may be able to get a VA home loan more than once, but you’ll need to meet certain requirements first. In general, you’ll need to sell your previous home before taking out another VA loan. There are also a few other things to keep in mind, so let’s dive in.
The first-time homebuyer rule
The first-time homebuyer rule applies to VA loans acquired after December 1, 1990. If you bought a home using a VA loan and sold it before that date, you’re exempt from the rule. You can also bypass the rule if you refinance your home with a new VA loan. The first-time homebuyer rule does not limit how many times you can use the VA loan program. You can get multiple VA loans as long as you don’t have an outstanding balance on any of your previous loans when you apply for a new loan.
The entitlement restoration
If you’ve previously used a VA home loan, you might be able to restore your full entitlement by paying off the loan in full and then waiting a designated amount of time. The time frame can vary, but generally, it’s two years for a regular VA loan and five years for a VA Streamline Refinance. If you still have your home or if it was sold in a foreclosure, you may not be eligible to have your entitlement restored.
How to get a VA home loan
A VA home loan is a mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA). The loan is available to veterans, active duty service members, reservists, and National Guard members. The VA home loan is a great benefit for those who have served our country.
You may be eligible for a VA-backed home loan if you:
-Served on active duty after September 16, 1940, and before July 1, 1947.
-Served at least 181 days of active duty after January 31, 1955, and before December 31, 1956.
-Served at least 90 days of active duty during the Vietnam Era. (January 1, 1964–May 7, 1975 for veterans who served in the Republic of Vietnam during that period.)
-Served at least 180 days of active duty during the Gulf War. (August 2, 1990–January 2, 1992 for reservists who served on active duty during that period.)
-Are a reservist or National Guard member who was called to active duty by a federal order and completed the full period for which you were called or ordered to serve.
-Are the surviving spouse of a Veteran who died in service or from a service-connected disability
The application process
The application process for a VA home loan is fairly simple and can be completed online or with a paper application. You will need to provide some basic information about yourself and your service, as well as your lender of choice. Once you have been approved, you will be able to complete the loan process and get your new home.
You can use your VA home loan more than once, but there are some restrictions that you should be aware of before you apply for a second VA loan. The first thing to understand is that if you currently have a VA loan, you must sell your home before you can take out another VA loan. In addition, if you have any equity in your home, you may be required to use that equity as a down payment on your second loan.
If you do not have any equity in your home or if you are selling your home and using the proceeds to pay off your first loan, then you may be able to apply for another VA loan without any down payment. However, there are still some restrictions that apply. For example, if you have used a VA loan to purchase a home that is not your primary residence, then you may not be eligible for another VA loan unless you sell the property or refinance the loan into a non-VA loan.
If you currently have a VA loan and want to use another VA loan to purchase a new primary residence, then you will need to sell your current home and use the proceeds to pay off your first VA loan before you can apply for another one. If you have any equity in your home, then you may be required to use that equity as a down payment on your new home.