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How Many Times Can You Use a VA Loan?

If you're a veteran or active-duty service member, you might be wondering how many times you can use your VA loan benefits. The good news is that there is no limit to the number of times you can use a VA loan, provided you meet the eligibility requirements and have remaining entitlement. This article will explore the ins and outs of using VA loans multiple times, including the concept of entitlement, eligibility criteria, and scenarios where you might have more than one VA loan at a time.

VA Loans

Understanding VA Loan Entitlement

VA loan entitlement is the amount the Department of Veterans Affairs (VA) guarantees to a lender in case of default. There are two levels of entitlement: basic and second-tier. The basic entitlement is $36,000, and the second-tier entitlement can go up to $145,550, making a total of $181,550 in most cases.

Reusing Your VA Loan Benefits

You can reuse your VA loan benefits in several scenarios:

  • Paying off your current VA loan: If you have paid off your current VA loan and sold the property, you can restore your full entitlement and use it to purchase another home.
  • Refinancing your VA loan: If you refinance your current VA loan into another VA loan (a process known as Interest Rate Reduction Refinance Loan or IRRRL), your entitlement remains tied to the property. However, you can still use any remaining entitlement for a second VA loan.
  • Having remaining entitlement: If the home you purchased with a VA loan costs less than the maximum entitlement, you may have remaining entitlement that you can use for another VA loan without having to pay off the first one.

Using Your VA Loan Multiple Times

You can use your VA loan benefits multiple times throughout your life. Here are some key points to consider:

  • Full Entitlement Restoration: If you sell your home and pay off your VA loan in full, you can restore your full entitlement and use it again for another home purchase.
  • Partial Entitlement: If you still own a home financed with a VA loan but have paid off a portion of the loan, you can use your remaining entitlement to purchase another home. However, this might require a down payment if the loan amount exceeds your remaining entitlement.
  • Second-Tier Entitlement: This allows you to have more than one VA loan at a time, typically used when you receive Permanent Change of Station (PCS) orders and need to buy a new home while still owning your current one.

Scenarios for Multiple VA Loans

  • Permanent Change of Station (PCS): Active-duty service members who receive PCS orders can buy a new home at their new duty station while still owning their current home, provided they have enough remaining entitlement.
  • Refinancing: You can refinance your existing VA loan to take advantage of lower interest rates or to cash out equity. This does not affect your entitlement for purchasing another home.
  • Owning Multiple Properties: While VA loans are primarily for primary residences, there are exceptions where you can own multiple properties. For instance, if you have sufficient entitlement and meet the occupancy requirements, you can have two VA loans simultaneously.

There is no limit to the number of times you can use your VA loan benefits, as long as you meet the eligibility requirements and have remaining entitlement. Whether you're buying a new home, refinancing, or dealing with a PCS, the VA loan program offers flexibility and benefits that can help you achieve your homeownership goals multiple times throughout your life.

For more information on VA loans and to see if you qualify, contact us and speak with one of our VA home loan specialists today. By understanding the rules and benefits of VA loans, you can make informed decisions about your home financing options. Whether it's your first home or your fifth, the VA loan program is designed to support veterans and active-duty service members in achieving their homeownership dreams.

Alpine Mortgage provides VA loans in California, Connecticut, Florida, New Jersey, New York, Pennsylvania and Texas. Call us today at (800) 876-5626 to speak with one of our VA home loan specialists or click here to have one of our VA loan specialists contact you. 

VA Loans FAQs

The process of restoring your entitlement can vary depending on your situation. Contact the VA or a VA-approved lender to discuss your specific case and get an estimated timeline.

While the VA doesn't charge a fee for restoring your entitlement, there may be other fees associated with obtaining a new VA loan, such as the VA funding fee and closing costs.

Yes, you can have more than one VA loan at a time using your second-tier entitlement, typically when you receive Permanent Change of Station (PCS) orders and need to buy a new home while still owning your current one.