How Many Times Can I Get a VA Loan?

The VA home loan program offers eligible service members, veterans, and surviving spouses a pathway to homeownership. Known for favorable terms like no down payment, the VA loan is often perceived as a one-time benefit. However, it can be used multiple times throughout an eligible individual’s lifetime, adapting to various housing needs. Understanding how to utilize this benefit beyond its initial use is key.

Understanding VA Loan Entitlement

VA loan entitlement is the amount the Department of Veterans Affairs guarantees to a lender if a borrower defaults on a home loan. This guarantee encourages lenders to offer attractive terms, including no down payment. It is a promise of repayment to the lender, influencing how much a veteran can borrow without a down payment.

Entitlement includes basic and bonus (or second-tier) amounts. Basic entitlement is $36,000. Bonus entitlement expands the guarantee to 25% of the total loan amount, often up to conforming loan limits for the county.

With full entitlement, there is no VA-imposed loan limit; the amount one can borrow is determined by lender qualifications based on income and credit. When a veteran obtains their first VA loan, a portion of their entitlement is used with that property. This reduces the amount available for future use until specific conditions are met. The amount used is typically 25% of the original loan amount, which impacts securing subsequent VA loans.

Reclaiming Your Entitlement

Veterans can restore their VA loan entitlement for future use through several methods. The most common way is by selling the home purchased with a VA loan and paying off the loan. Another pathway involves refinancing the existing VA loan into a non-VA product, such as a conventional or FHA mortgage. The entitlement used on that loan becomes available again.

A third method is when another eligible veteran assumes the VA loan and substitutes their own entitlement for the original borrower’s. This transfers the original veteran’s entitlement for a new purchase.

The VA also offers a “one-time restoration” option for veterans who have paid off their VA loan but wish to retain ownership. This can occur through a cash payment or refinancing into a non-VA loan. This option restores full entitlement for a new VA loan but can only be exercised once. Subsequent restorations after using this option require the sale and full payoff of all properties previously financed with a VA loan.

To initiate restoration, veterans submit VA Form 26-1880, a Request for a Certificate of Eligibility, along with documentation proving the prior loan is satisfied. Veterans can restore and reuse their VA loan entitlement an unlimited number of times, provided they meet the conditions of sale or full payoff for each instance, or utilize the one-time restoration rule.

Using Partial Entitlement for Additional Loans

Even if a veteran’s full entitlement has not been restored, an additional VA loan can be secured using remaining entitlement. This occurs if the veteran did not use their full entitlement on their initial loan, or if they have an active VA loan but need to purchase another primary residence, such as due to a Permanent Change of Station (PCS) order.

Remaining entitlement allows a veteran to have multiple VA loans simultaneously, provided there is enough available entitlement to cover the new loan’s guarantee. The calculation involves determining the difference between the maximum entitlement available based on current loan limits and the entitlement already used. If a portion of entitlement is used in an existing loan, the remaining amount can be applied to a new purchase.

With partial entitlement, the VA guarantees 25% of the county’s conforming loan limit, minus the entitlement already used. If the desired loan amount exceeds what the remaining entitlement covers, a down payment may be required. This offers continued access to the VA loan benefit without full entitlement restoration.

Steps for Securing a Subsequent VA Loan

The process for securing a subsequent VA loan begins with obtaining a Certificate of Eligibility (COE). The COE is a document that verifies an individual’s eligibility for the VA home loan program and details their entitlement status, including any previously used or restored amounts. This document can be obtained through the VA’s eBenefits portal, directly from a VA-approved lender, or by submitting VA Form 26-1880.

After securing an updated COE, find a VA-approved lender experienced in handling subsequent VA loans. These lenders can provide guidance on specific requirements.

The application process for a subsequent loan largely mirrors that of a first-time VA loan. This includes pre-qualification to determine an affordable loan amount, followed by the submission of necessary documentation. This involves providing the COE, proof of income, credit history, and any relevant documents related to the payoff of a prior VA loan if entitlement was restored.

The property will undergo a VA appraisal to ensure it meets minimum property requirements. The loan application will proceed through underwriting, where the lender evaluates the borrower’s creditworthiness, debt-to-income ratio, and residual income. Upon approval, the loan moves to closing. All VA loans are intended for primary residences, and occupancy requirements apply to subsequent loans as well.