Qualifying service members and Veterans of the U.S. military are entitled to VA benefits. VA home loans are among these benefits. If you’ve never bought a home with a VA loan, you may be wondering how long this benefit is available to you. Is there a limit to the number of times that you can take out a VA loan? Here’s everything you need to know.
Can You Use a VA Loan More than Once?
VA home loans are available to qualifying Veterans and service members throughout their lifetime. So yes, you can use a VA loan more than once.
The catch is you can only use it for a primary residence. Other than that, so long as you meet eligibility requirements and the criteria specified by your lender, you always have the option to use a VA loan when buying a home.
Is It Possible to Have Two VA Loans at the Same Time?
Yes. There are special circumstances that can make it possible to have two VA home loans at the same time. Usually, this situation comes into play when an active service member receives orders for a PCS (Permanent Change of Station).
You’ll still have to have the necessary finances and credit score to qualify for a second loan. Additionally, you may be limited on how much you can borrow for your second loan without having to put money down.
Sometimes, service members choose to keep their current home and rent it out when they receive their PCS orders. In this case, so long as they qualify, they would be able to take out a second VA mortgage.
Full Entitlement Vs. Reduced Entitlement
As a VA borrower, it’s important to know the difference between full entitlement and reduced entitlement. Eligible Veterans, service members, and survivors with full entitlement do not have limits on loans over $144,000. On the contrary, if you have reduced entitlement (also referred to as “remaining entitlement”), you do have a home loan limit.
You may have full entitlement if;
- You’ve never taken out a VA home loan
- You’ve paid a previous VA loan in full and sold the property
- You’ve used your home loan benefit, but had a foreclosure or compromise claim (also called a short sale) and repaid the Department of Veterans Affairs in full
You may have reduced/remaining entitlement if;
- You have an active VA loan you’re still making payments on
- You’ve taken out a VA loan before, have paid it in full, and still own the property
- You refinanced your VA loan into a different type of loan and still own the home
- You had a compromise claim (or short sale) on a previous VA loan and didn’t repay the VA in full
- You had a deed in place of foreclosure on a previous VA loan
- You’ve taken out a VA loan previously, had a foreclosure, and didn’t repay the VA in full
If you’re not sure where you fall on the spectrum, we’d be happy to discuss your situation in detail and help guide you in the right direction.
Get More Information
For more information on VA home loans, please contact our office.