How Often Can You Get a VA Loan Benefit?
Understand the flexibility of your VA home loan benefit. Learn how its unique structure allows for multiple uses and concurrent loans under various conditions.
The VA home loan program provides a significant benefit for eligible service members, veterans, and surviving spouses, facilitating homeownership with favorable terms. A common question is whether this benefit can be accessed more than once. The program is designed to be a lifelong advantage, allowing for multiple uses under specific conditions.
Understanding VA Loan Entitlement
The foundational concept for understanding VA loan reusability is “entitlement.” This refers to the amount the Department of Veterans Affairs (VA) guarantees to a lender on a qualified borrower’s loan. This guarantee encourages lenders to offer terms like no down payment, which is a hallmark of VA loans.
There are two types of entitlement: basic and bonus. Basic entitlement is typically $36,000. For loans exceeding $144,000, bonus entitlement allows the VA to guarantee 25% of the loan amount. This entitlement is not a cash amount provided to the veteran but a promise from the VA to cover a portion of the loss if a borrower defaults.
When a VA loan is obtained, a portion of the borrower’s entitlement becomes tied to that property. The entitlement used is 25% of the loan amount. For instance, a $200,000 loan would use $50,000 of entitlement. The available entitlement directly impacts the maximum loan amount a borrower can obtain without a down payment.
Restoring Your Full VA Loan Entitlement
Borrowers can fully restore their VA loan entitlement after using it, enabling them to obtain another VA loan with full benefits, including no down payment. The most common method involves selling the home purchased with the VA loan and ensuring the loan is paid in full. Once the sale is complete, the entitlement is freed up for future use.
Another method for full restoration is refinancing the original VA loan into a non-VA loan, such as a conventional or FHA loan. This action repays the VA loan in full, releasing the entitlement tied to it.
The VA offers a one-time restoration of entitlement, allowing a borrower to apply for restoration even if they still own the home purchased with the VA loan, provided the loan has been paid off. This option is useful if the borrower wishes to keep the original property, perhaps as a rental, and secure a new primary residence with a VA loan.
To apply for entitlement restoration, borrowers must complete and submit VA Form 26-1880, “Request for a Certificate of Eligibility (COE).” This form, along with supporting documents like a closing statement from a sale or a statement from a new lender if refinancing, helps the VA confirm the previous loan’s repayment. The updated COE will reflect the restored entitlement, allowing the borrower to proceed with a new VA loan application.
Using Remaining Entitlement for a Second Loan
Even if full entitlement has not been restored, or if a borrower did not use their entire entitlement on a first loan, they may still secure a second VA loan. This occurs when a borrower has “remaining entitlement.” This can happen if the initial home purchased was less expensive than the maximum entitlement allowed, or if entitlement was partially used.
Remaining entitlement can be used for a subsequent loan, even if the first VA loan remains active and the property has not been sold. The VA calculates available remaining entitlement by subtracting the entitlement already used from the maximum entitlement amount for the area. For instance, if a borrower used $50,000 of entitlement on a first loan, and the maximum available entitlement in their county is $201,625 (based on a 2025 standard loan limit of $806,500), they would have $151,625 in remaining entitlement.
This remaining entitlement directly influences the maximum loan amount a borrower can obtain for a second property without a down payment. For example, if a borrower has $151,625 in remaining entitlement, they could borrow up to $606,500 ($151,625 x 4) without a down payment in an area with a standard loan limit. This flexibility allows for situations like purchasing a second home due to relocation or acquiring a larger home while retaining the first.
Having Two Active VA Loans
It is possible for a borrower to have two active VA loans simultaneously, subject to specific conditions. The primary condition is that the borrower must possess sufficient remaining entitlement to cover the guarantee portion of the second loan.
Other requirements must be met for a second concurrent VA loan. The borrower must intend to occupy the second property as their primary residence. Exceptions exist for military relocation due to Permanent Change of Station (PCS) orders, where the borrower may have a valid reason for not occupying the first property. The first property financed by a VA loan cannot be considered an investment property; VA loans are intended for primary residences.
Loan limits also play a role, as remaining entitlement interacts with county loan limits for the new property. While borrowers with full entitlement face no VA-imposed loan limits, those using remaining entitlement will have their maximum loan amount tied to the conforming loan limits for the county where the new property is located. As of 2025, the standard VA loan limit in most U.S. counties is $806,500, with higher limits in high-cost areas. The ability to manage both mortgage payments, considering debt-to-income ratios and residual income requirements, is also a factor in qualifying for a second VA loan.