How Many Times Can You Use Your VA Loan?

You can use your VA Loan as many times as you want, as long as you qualify each time.

If you’re a Veteran and you’re looking to buy a home, you may be wondering how many times you can use your VA Loan. The answer is that you can use your VA Loan as many times as you want, as long as you qualify each time. So if you’re thinking of buying a home, don’t let the fact that you’ve used your VA Loan before

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The Basics of the VA Loan

The VA loan is a home loan that is backed by the United States Department of Veterans Affairs. The loan is available to veterans, reservists, and active duty personnel. The VA loan can be used to purchase a home, to build a home, or to refinance an existing home loan. The loan can also be used to purchase a condo, to build a condo, or to refinance an existing condo loan.

What is the VA Loan?

The Department of Veterans Affairs (VA) loan is a mortgage loan that is partially guaranteed by the U.S. Department of Veterans Affairs. The loan is available to qualified veterans, active-duty service members and reservists, and some surviving spouses. The VA loan program was created in 1944 to help returning service members buy homes without the need for a down payment or perfect credit.

The VA loan program has since helped millions of veterans, service members and their families achieve the dream of homeownership. In 2018, more than 740,000 VA loans were issued, totaling more than $161 billion. The average VA loan was for more than $273,000.

Who is eligible for the VA Loan?

The Department of Veterans Affairs (VA) Loan is a long-standing and popular benefit for eligible veterans, active-duty military members and reservists, and certain spouses. You’ve probably heard a lot about VA loans, but how do you know if you’re eligible?

Basically, anyone who meets at least one of the following criteria can apply for a VA loan:
-You have served 90 consecutive days of active service during wartime, OR
-You have served 181 days of active service during peacetime, OR
-You have more than 6 years of service in the National Guard or Reserves, OR
-You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability
If you’re not sure whether you meet the eligibility requirements for a VA loan, the best way to find out is to contact a VA-approved lender.

The Loan Limits

The Department of Veterans Affairs (VA) loan limit is the maximum borrowing amount the VA will guarantee. The limit varies by county and is based on the conforming loan limit for that county. The loan limit is the same for all borrowers, whether they’re first-time buyers, repeat buyers, or refinancers. The VA loan limit for 2021 is $0.

How much can you borrow with a VA Loan?

The loan limits are the same as conventional loans backed by Fannie Mae or Freddie Mac. In 2020, that means you can borrow up to $726,525 for a single-family home in most counties across the country. Some “high-cost” counties have loan limits as high as $1,148,400.

Does the loan limit change if you have a down payment?

The down payment does not affect the loan limit. If you have a down payment, you may be able to borrow more money, but the loan limit will not change.

The Loan Terms

You can take out multiple VA loans, but there are some restrictions. You’ll have to pay off your first loan before you can take out another one. And while you can technically have more than one loan at a time, it’s generally not recommended. Let’s go over the details of how many times you can use your VA loan.

How long does the loan last?

The typical VA loan is a 30-year fixed-rate mortgage. That means it has a fixed interest rate for the 30 year term of the loan. It also usually requires a down payment equal to 3.5% of the purchase price.

The key feature of a VA loan is that it allows veterans to purchase a home with no money down, and there is no monthly mortgage insurance required. PMI is insurance required by mortgage lenders on loans that are not guaranteed by the VA. The payment for PMI is usually added to your monthly payment. Because there is no monthly PMI on a VA loan, your payments will usually be lower than they would be on a comparable conventional loan with 3.5% down.

What is the interest rate?

The interest rate is the rate at which your loan accrues interest. It’s expressed as a percentage of your loan amount and it varies based on the length of your loan, your loan amount, and the prime rate. The prime rate is a benchmark interest rate used by lenders.

The Funding Fee

The Department of Veterans Affairs charges a funding fee for every purchase and refinance loan. The fee helps to offset the cost for taxpayers. The funding fee for first-time users with no down payment is 2.15% of the loan amount. The fee decreases somewhat with a down payment, and subsequent loans have a lower fee.

What is the funding fee?

The funding fee is a percentage of the loan amount which Veterans, service members, and reservists are required to pay when using a VA-guaranteed home loan. The fee lowers the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance premiums.

Volunteers serving in the Public Health Service or National Oceanic and Atmospheric Administration also benefit from this program. Some borrowers are exempt from the funding fee.

The funding fee for second time users who do not make a down payment is higher than for those who do. Also, National Guard and Reserves members pay a slightly higher funding fee percentage.

How is the funding fee calculated?

The funding fee for regular military (Active Duty and Reserve) is 2.15% and the funding fee for veterans who are exempt from the funding fee is 0%. The funding fee for veterans with a service-connected disability is also 0%. The funding fee percentage is applied to the loan amount and can be financed into the loan. For purchases, funds may be received as a gift from a relative or friend.

For additional questions regarding the VA Loan program, please contact a VA Loan Specialist at 888-258-6879.

Can You Use Your VA Loan More Than Once?

You may be wondering if you can use your VA Loan more than once. The answer is yes! You are able to use your VA Loan as many times as you would like, as long as you qualify.

Yes, you can!

If you’re a veteran or service member who’s eligible for a VA-backed home loan, you may be wondering if you can use your benefit more than once. The answer is yes! You can, in fact, have as many VA loans as you want at the same time. However, there are some important things to keep in mind if you plan to take out more than one VA loan at a time.

For starters, you’ll need to meet all the standard eligibility requirements for each loan. This means that you (or your spouse) must:
-have served on active duty for at least 90 days (or 181 days during peacetime)
-have been discharged from service due to a service-related disability (if applicable)
-have adequate income and credit reports
-not currently be delinquent on any federal debt

In addition, each home must meet the VA’s minimum property requirements. These requirements vary depending on the type of home you’re looking to purchase, but they generally include standards for things like the home’s age, condition, and size.

Another thing to keep in mind is that while you can technically have multiple VA loans at the same time, it may not always make financial sense to do so. This is because each VA loan comes with its own funding fee, which is a percentage of the loan amount that you’ll need to pay upfront (or finance into the loan). For most borrowers, this fee ranges from 1.25% to 3.3% of the total loan amount. So if you’re thinking about taking out multiple VA loans at once, make sure you factor in the additional costs associated with each one.

How do you qualify for a second VA Loan?

In order to qualify for a second VA Loan, you must occupy the home as your primary residence, just as you did with your first VA Loan. You also must demonstrate the willingness and ability to repay the loan. In most cases, the second VA Loan will have the same amount of eligibility as the first loan.

What if you have to sell your home before you can qualify for a second loan?

VA loans are intended for primary residences, so borrowers can only have one outstanding loan at a time. If you sell your home before you’ve paid off your VA loan, you will have to pay the remaining balance of the loan in full. If you’re interested in a second VA loan, you’ll need to wait until your first loan is paid off before applying for another.