You can use your VA Loan as many times as you want, as long as you qualify each time.
However, there are a few things to keep in mind with each subsequent VA Loan.
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The Veterans Affairs (VA) loan program is designed to help active-duty military personnel, veterans, and their families finance the purchase of a home. VA loans are backed by the federal government and offered through participating lenders. Because of this backing, VA loans don’t require a down payment or private mortgage insurance (PMI).
The Basics of a VA Loan
A VA loan is a mortgage loan that is guaranteed by the United States Department of Veterans Affairs (VA). The loan is available to veterans, active-duty service members, reservists, National Guard members, and certain surviving spouses. The VA loan program was created in 1944 to help returning service members purchase homes without the need for a down payment or perfect credit.
VA loans are available for the purchase of a primary residence (including a condo, manufactured home, or duplex) or for the construction of a new home. In most cases, you can only use a VA loan once. However, there are a few exceptions that will allow you to get a second VA loan.
If you sell your home and pay off your VA loan, you can then reapply for another VA loan. If you have paid off your first VA loan and still have eligibility remaining, you can also apply for another VA loan. Additionally, if you have previously used a portion of your entitlement to purchase a home and later restored your entitlement by paying off the loan in full or refinancing with a non-VA loan, you may be able to apply for another VA loan.
It’s important to note that even if you are eligible for another VA loan, you are not required to use it. You may choose to apply for a conventional mortgage instead.
How Many Times Can You Use a VA Loan?
The VA loan is a great option for eligible borrowers who are looking to purchase a home with little to no money down. But how many times can you use a VA loan? The answer may surprise you.
The Rule of Thumb
The rule of thumb is that a borrower can have no more than one outstanding VA loan at a time. This means that if you have an existing VA loan, you must sell or refinance that property before acquiring another.
There are some situations where veterans are able to have two VA loans at the same time, but it requires special circumstances and must be approved by the Department of Veterans Affairs.
If you currently have a VA loan and are interested in acquiring another property using your Veteran’s Affairs benefits, contact your lender to see if you qualify for an exception to the rule.
When You Can Borrow Again
In general, Veterans and active duty servicemembers can use their VA home loan benefits again after selling the property purchased with a prior VA loan or paying that loan in full. There are a few other specific circumstances in which a second VA loan might be possible. You may qualify for another VA loan if:
-You have paid off your first VA loan in full, including any principal, interest, and fees.
-You have sold the home purchased with your first VA loan and paid off any remaining balance on the loan.
-You have leased the property to another party and are no longer living in the home as your primary residence.
-You still own the property purchased with your first VA loan but would like to take out additional financing against the home’s equity.
In general, there is no limit on how many times you can use a VA loan. You can get a new loan as soon as you pay off the previous one, as long as you still meet all the eligibility requirements. There are also some situations where you might be able to qualify for multiple VA loans at the same time.