Can I Have Two VA Loans at the Same Time?

The Department of Veterans Affairs (VA) loan program provides eligible service members, veterans, and their surviving spouses with a valuable homeownership benefit. These loans are known for features like competitive interest rates, no private mortgage insurance, and often require no down payment. A common question among those who have previously used this benefit is whether it is possible to secure another VA loan while an existing one is still active. It is indeed possible to have more than one VA loan concurrently, but this depends on specific circumstances and a borrower’s remaining entitlement.

Eligibility for Multiple VA Loans

The ability to obtain multiple VA loans stems from the concept of “entitlement,” which represents the amount the VA guarantees to a lender if a borrower defaults. Every eligible veteran is granted a basic entitlement, which ensures the VA will cover 25% of a loan amount up to $144,000. For loans exceeding this amount, “bonus entitlement” comes into play, allowing the VA to guarantee up to 25% of the loan amount without a specific cap for those with full entitlement. A borrower is considered to have “full entitlement” if they have never used their VA loan benefit, have paid off a previous VA loan and sold the property, or have repaid the VA in full after a foreclosure or short sale. In such cases, there are generally no VA-imposed limits on how much can be borrowed with no down payment, provided the borrower meets the lender’s qualifications. However, if a portion of the entitlement is tied up in an existing VA loan, a borrower may still qualify for a second loan by utilizing their “remaining entitlement.” This scenario often arises when service members receive permanent change of station (PCS) orders, allowing them to purchase a new primary residence while retaining their previous home.

Calculating and Using Remaining Entitlement

For individuals with full entitlement, the VA does not impose a maximum loan amount, meaning they can borrow as much as a lender approves based on their financial standing. For those with an existing VA loan, the amount of entitlement already used impacts the potential size of a second loan. The entitlement used on a first loan is typically 25% of that loan’s original principal.

To determine remaining entitlement, one must subtract the used entitlement from the maximum available entitlement. As of 2025, the standard VA loan limit for a one-unit home in most counties is $806,500, though this can be higher in designated high-cost areas, reaching up to $1,209,750. For a borrower with reduced entitlement, the maximum entitlement available in a standard county is 25% of this loan limit, which is $201,625 ($806,500 x 0.25).

If, for example, a borrower used $50,000 of entitlement on a previous $200,000 VA loan, they would have $151,625 ($201,625 – $50,000) in remaining entitlement. This remaining amount then dictates the maximum loan size that can be financed without a down payment for the second property, which would be $606,500 ($151,625 x 4). Lenders typically require the combination of a borrower’s remaining entitlement and any potential down payment to cover at least 25% of the new loan amount. If the remaining entitlement is insufficient to cover 25% of the desired second loan, a down payment would be necessary to bridge the gap. For instance, if a borrower wants a $700,000 loan but only has $151,625 in remaining entitlement, they would need a down payment of $23,375. This is because 25% of $700,000 is $175,000, and the difference between this and the remaining entitlement ($175,000 – $151,625) must be covered by a down payment.

Occupancy Requirements for VA Loans

A fundamental condition of the VA loan program is that the property must serve as the veteran’s or service member’s primary residence. The borrower must intend to occupy the home they purchase with the VA loan. Typically, this occupancy must occur within 60 days of closing, though extensions up to a year may be granted under certain circumstances, such as extensive renovations or military deployments.

When pursuing a second VA loan, the new property must also be intended as the borrower’s primary residence. Service members receiving Permanent Change of Station (PCS) orders can use their remaining entitlement to purchase a new home. In such cases, the previous VA-financed home can often be rented out after the initial occupancy requirement has been met, generally for at least 12 months. The VA loan cannot be used for investment properties or second homes.

VA Loan Funding Fee for Subsequent Use

The VA loan funding fee is a one-time charge paid directly to the Department of Veterans Affairs. This fee helps offset program costs and reduce the burden on taxpayers. It can either be paid upfront at closing or financed into the loan, increasing the overall loan balance.

For subsequent use of the VA loan benefit, the funding fee percentage is generally higher than for a first-time use. For instance, in 2025, a first-time VA loan user with no down payment might pay a funding fee of 2.15%, while a subsequent user with no down payment could face a fee of 3.3%. The specific percentage can vary based on factors like the loan type, the amount of down payment, and whether it is a first or subsequent use.

Certain individuals are exempt from paying the funding fee. These include veterans receiving VA compensation for a service-connected disability, those entitled to such compensation but receiving retirement or active-duty pay, Purple Heart recipients, and eligible surviving spouses. Their Certificate of Eligibility (COE) will typically indicate their exemption status.