When You Sell Your Existing Home
There are different ways to let you use your VA loan again if youve already taken out a loan before and youre still paying it off. You can restore your entitlement and use your loan again after selling your home and using the proceeds to pay your existing loan in full. Doing so will help you restore your full entitlement.
You have to secure a new Certificate of Eligibility so that you can show the lender that none of your loan benefits are tied to a loan. But, you may not need to restore your entitlement if you have enough remaining VA loan restoration to cover the new loan that youre trying to apply for.
Your Va Loan Has Been Assumed By Another Veteran
Your entitlement can be restored if you sell your home to another VA home buyer. It is possible for them to use their entitlement to buy a home, freeing up your entitlement at the same time.
It can also be possible for a non-VA buyer to assume your loan. However, they must pay off the mortgage before your entitlement is restored.
How To Restore Va Loan Eligibility
Obviously, the most widely used way to restore eligibility is to sell the home and use the proceeds to pay back the mortgage. Next time you apply for a COE, it should show your original entitlement as available again.
Or, as mentioned above, you can get a one-time restoration.
But there is another path to re-using your VA benefit: loan assumption.
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What Are The Va Home Loan Limits By Year And County
Find the VA home loan limit for the county your property is in.
2020 VA home loan limits
VA home loan limits are the same as the Federal Housing Finance Agency limits. These are called conforming loan limits.
Go to FHFAs Conforming Loan Limits page
You’ll find the link to this page below.
Scroll to the Previously Announced Loan Limits section
Review the table with past loan limit information.
Find the year with the limits you need
Years are located in the first column, labeled Description.
Two Va Home Loans At The Same Time
Many VA borrowers who buy ordinary family homes use way less than their full entitlement. And some can use whats leftover to acquire a second VA loan.
If youre posted away from your existing home in a permanent change of station , you can typically apply to use your remaining entitlement to purchase a different property close to where youre moving. And you can then rent out your existing home.
Sometimes, the remaining entitlement isnt quite enough to cover the loan required. But if you can scrape together a modest down payment, you can use that to bridge the gap.
The math can get complicated with this. If you think you may want to apply, you should talk to a VA mortgage loan specialist early on in the process.
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How Much Entitlement Does The Va Provide
Entitlement can be confusing for even the most experienced mortgage professionals. But it really just involves a bit of math. In most areas of the country, basic entitlement is $36,000. Additionally, secondary entitlement is $70,025. Adding those together gives you a total of $106,024 for eligible veterans. In higher cost areas, it may be even more.Additionally, the VA insures a quarter of the loan amount for loans over $144,000. Therefore, you can multiply that entitlement amount, $106,024, by four for a maximum loan amount of $424,100. Thats the total amount qualified buyers could borrow before having to factor in a down payment.
How To Restore A Va Loan
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Whether you are moving to a new home or looking to purchase a second one, you may be wondering if you can use your full VA loan entitlement more than once. While the loan entitlement is limited, there are ways to restore it and extend your ability to buy without paying a down payment.
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So With All That In Mind How Many Times Can You Use A Va Loan
Were almost done! To recap:
- You can refinance a VA loan as many times as you need to.
- Entitlement is the portion of your home loan backed by the VA.
- There are three key ways you can restore your entitlement.
- Your entitlement never expires.
- If you have enough entitlement available, you can take out two VA loans at once.
- If you take out a second VA loan, it cant be used as an investment property or vacation home.
When youre ready to get started, reach out to our team and find out how your VA loan can serve you again and again.
Your entitlement never expires, so you can use it as many times as you wanteven for two VA loans at once.
Have questions or VA loan experiences to share? Give us a shout on or !
About the Author
When Bethany was a kid, her mom took her to the zoo, museums, and more fun spotsthen made her write essays about them. Now, Bethany deploys those skills as a copywriter at Cardinal Financial and has to admit: she owes her mom one. When Bethanys not dreaming up fresh takes on mortgage lending, you can find her running, spoiling her cat, and refusing to improve as a chef.
How Many Times Can An Eligible Veteran Use A Va Loan
November 9, 2018 By JMcHood
Many people mistakenly think they can only use their VA home loan benefit one time, but thats not true. Veterans can use their VA loan benefit as many times as they want. Its a lifetime benefit. But in order to use it more than once, you must meet certain conditions.
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Q: Only A Portion Of My Eligibility Is Available At This Time Because My Prior Loan Has Not Been Paid In Full Even Though I Don’t Own The Property Anymore Can I Still Obtain A Va Guaranteed Home Loan
A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.
Can I Buy A Second Home With A Va Loan
You can use a second VA loan to get a second home but there are stipulations you must follow. As with the second VA loan, you have to have entitlement available, and youll have to be financially eligible for another mortgage.
On top of those requirements, you need to prove to the VA your second home provides a net tangible benefit.
Net tangible benefits include:
Please contact our support if you are suspicious of any fraudulent activities or have any questions. If you would like to find more information about your benefits, please visit the Official US Government website for theDepartment of Veteran Affairs or the US Department of Housing and Urban Development.
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Yes You Can Have More Than One Va Loan At A Time
VA loans are hands-down the best choice for those who qualify wanting a low cost, no down payment financing with competitive rates.
Its a benefit reserved for the select few who have served or are serving in the Armed Forces, Guard or Reserves and was first introduced as part of the original GI Bill of 1944.
VA loans have multiple benefits that others dont have and isnt a one-time affair. A veteran can use the VA home loan benefit more than once to buy and finance a home. But a little known and rarely used provision of the VA home loan guarantee allows a veteran to have more than one VA loan at a time.
That means a veteran can buy and finance a home with zero down, later keep the property as a rental and buy yet another property using the VA program.
It takes a little math, but we must first understand VA home loan entitlement.
Va Home Loan Overview And Advantages
What we know now as the VA home loan actually began with the 1944 Servicemens Readjustment Act. Among other benefits , this bill established the predecessor to the current VA home loan, increasing veteran homeownership via access to affordable mortgages.
Currently, the VA home loan offers the following key benefits, all of which make using the program a second time extremely appealing:
- No down payment required
- Streamlined refinance via the Interest Rate Reduction Refinance Loan
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Can I Restore My Full Entitlement
Absolutely. Your VA loan entitlement is a lifelong benefit that you can use time and time again. The key is knowing how to restore your entitlement eligibility after buying a property. Lets take a look at your options.
How do I get my VA loan entitlement restored?
There are three ways to restore your full VA loan entitlement.
Is It Possible To Use A Va Loan More Than Once
If your family has outgrown your home and needs more space, you may be wondering: Can you use your VA loan twice? Luckily, the answer is yes. You can restore your full VA loan entitlement by selling your home or paying off the mortgage in full. Alternatively, you can also use the remaining entitlement amount from the purchase of your first property to buy a second home that better suits your needs.
However, there are certain VA loan requirements youll need to meet to take out a new mortgage. Heres a helpful, quick guide to all you need to know about reusing your VA loan.
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Selling Your Home And Buying Another
Selling your home and buying another is the most common way to reuse your VA home loan benefit.
Let’s say you buy a $200,000 home, and the VA guarantees 25% of the loan amount, or $50,000. When you sell your home and pay off the balance, that $50,000 is freed up, and your full $127,600 entitlement becomes available.
Va Mortgage Entitlement Explained
VA loan entitlement is the amount of money the VA will guarantee on a home loan. This helps determine how much youre allowed to borrow before needing a down payment. Entitlement protection encourages lenders to offer VA loans with lower rates, no down payment and easier guidelines to qualify.
The entitlement amount is usually either $36,000 or 25 percent of the loan amount up to the conforming loan limit currently, $510,400 is the limit in most areas of the country, but its higher in some markets.
Eligible borrowers in most parts of the country have a primary entitlement of $36,000 and additional secondary entitlement of $91,600. That adds up to $127,600, says Sam Atapour, branch manager at Embrace Home Loans in Ashburn, Virginia.
When buying a home with a VA loan, some or all of this entitlement is used up in the mortgage. For instance, with a $200,000 loan, $50,000 of the entitlement is used. Say you want to carry two VA loans. The math is simple: $127,600 minus $50,000 of entitlement used on VA loan #1 equals up to $77,600 in entitlement that can be used for VA loan #2.
If you currently have a VA home loan, you may request a COE Certificate of Eligibility to learn if youre eligible to buy your next home with a VA home loan.
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From Maximum Loan Amounts To Credit Score Requirements Were Setting The Record Straight On This Benefit For Veterans And Service Members
Many things in the military are well planned and orderly. But when it comes to buying a home, there is no clear road map or training regimen provided. You may have heard about Veterans Affairs Home Loans, better known as VA loans, but are confused about what they are.
VA mortgages are available to most active duty service members, military veterans, members of the Reserve or National Guard, and eligible surviving spouses. Theyre offered through private lenders, like Wells Fargo, but are guaranteed by the U.S. Department of Veterans Affairs.
There are some myths out in the marketplace about these unique loans.
Sell The Property To Another Veteran
The second option is to sell the property to another qualified VA loan beneficiary. In this case, the servicemember or veteran who purchases from you will take over your loan, and their entitlement will be transferred into your name.
Before making the sale, you need to receive approval from the lender, who will check to ensure the buyer is qualified. You will also need to confirm with the VA that you are eligible to have your entitlement restored through this swap.
And for loan assumptions, there’s paperwork that’s important to fill out to release your liability. It’s VA Form 26-6381.
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What If I Need More Than My Basic Entitlement
Say youve got your eye on a home that exceeds the $144,000 amount covered by your lender. Thats where bonus entitlement comes in. Bonus entitlement increases the amount you can borrow, freeing you up to find your dream home in more expensive housing markets.
A bonus entitlement can even exceed the conforming loan limit giving you an edge over other buyers. This is called a jumbo loan. Keep in mind that to qualify for a jumbo loan with a bonus entitlement, youll need to pay off your current VA loan in full to restore your entitlement.
Youve probably already used some of your entitlement on your current home loan, but there are a few ways you can restore it and increase your borrowing eligibility. This allows you to keep taking out VA loans as many times as you need to, forever.*
*When you reuse your entitlement, your VA funding fee may increase. Your funding fee varies based on your military status, down payment, and the number of times youve used your entitlement.
Can You Have Multiple Va Loans
The VA Home Loan benefit that Veterans earn is not a one time benefit. You can use your benefits again after you get your first VA loan on your primary residence. You may qualify to have two or even three or more VA loans at the same time. Some lenders dont know how to do these kinds of loans. Some lenders will only give you a VA loan if you have full entitlement but thats not how the VA government agency loan program works. These loans require careful calculations of your remaining entitlement, VA eligibility and debt to income ratio. If others have said no, dont give up! It is possible to get multiple VA loans for the same Veteran.
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Va Loan Property Requirements
VA requires whatever home you purchase with a VA-backed loan to be a primary residence. This means you cant use the loan to buy a vacation home or an investment property. However, home doesnt just mean single-family homes. It can also mean condo units, multi-unit houses , and manufactured housing.
The home will need to undergo an appraisal and inspection by a VA-approved contractor before closing. Jones says VA appraisals tend to be strict and similar to FHA appraisals. These are intended to review the buildings safety and stability.
Can You Have More Than One Va Loan At One Time
As previously mentioned, the VA can guarantee a loan of up to $548,250 without making a down payment. If you got your first VA loan for less than that amount, you will have a remaining entitlement that you can use on your second loan. And that means you can have more than one VA loan at one time.
When you use only a portion of your entitlement, that amount will be tied up to your mortgage. As you may recall, the VA can guarantee up to 25% of the VA loan amount. So if you purchase a house thats worth $200,000, the entitlement that will be tied to the mortgage is $50,000.
But as discussed earlier, the VAs total guaranteed entitlement is up to $137,062. If you used only $50,000 of your entitlement, then you have $87,062 worth of remaining entitlement.
If you multiply your remaining entitlement of $87,062 by four, youll get an estimate of the total VA loan amount that you can borrow without worrying about a down payment.
But bear in mind that you still need to meet the lenders requirements, such as your income and credit score. Therefore, having a remaining entitlement is not a guarantee that you can get another VA loan while you are still paying for an existing one.
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How Many Va Loans Can I Have At Once
Another common question we here is how many VA loans can I have at once? Is it possible to have multiple VA loans at one time? The answer is yes in the right situation. For example it is very common when an active duty service member has to move to a new service station or base. They often might have a tough time selling the old home and decide to use it as a rental property. Now that being said there are few things to keep in mind. In order to keep the current home and purchase a new home with no down payment you must have enough in your VA entitlement. It is also important to remember that anytime you purchase a new home with a VA loan that property must be the primary residence. So in the example above this is a situation where the Veteran could possibly keep the older home for an investment property and purchase a new home using his or her VA loan benefits. If you are considering or have questions about purchasing a second home with your VA loan benefits call 855 -956 -4040 to speak with a VA mortgage professional.
