VA loans aren't a one-time benefit; you can use them multiple times as long as you meet the eligibility requirements. You can even have several VA loans at the same time. There is no maximum or limit on the number of times you can use a VA loan. You can use a VA loan once, twice, three, or seven times.
As long as you have remaining entitlement, you usually always have the option of obtaining another loan from the VA. VA loans can only be used for primary residences, and they come with occupancy requirements to ensure that's how the loan will be used. Yes, you can use the VA loan benefit to buy a home more than once. However, veterans seeking a second VA loan will need to consider the various stipulations.
The VA loan program was designed to help military borrowers enter primary residences, not to purchase vacation homes or investment properties. It's possible to have more than one VA loan at the same time, as long as certain rules are followed. There are several ways to get a second loan from the VA when you enjoy your reduced entitlement or request the restoration of your full entitlement. Because a down payment is often the biggest obstacle to homeownership for borrowers, especially those buying a home for the first time, VA loans can make homeownership much more accessible to those who qualify.
This can happen if you don't repay your VA loan, the lender foreclosures and sells your home for less than you owe, and the VA has to repay the lender. Entitlement protection encourages lenders to offer VA loans with lower rates, no down payment, and easier guidelines for qualifying. If something happens and you can't repay the loan, the VA will pay 25% of your loan to the lender as collateral. To explain this, the entitlement is the dollar amount that the VA guarantees to repay the lender, in the event that a borrower defaults on his loan.
But there are some unique restrictions and requirements for using this excess VA loan entitlement. It's also important to remember that every time you buy a new home with a VA loan, that property should be the primary residence. To get an additional full-entitlement loan, you must have paid off your previous VA loan in full and you must no longer own the home. If you are earning income from renting that home, you may also be able to use that income to offset the cost of your current home mortgage when you apply for a second new VA loan.
To get a partial entitlement, you will need to have the remaining entitlement and the loan must be below the FHFA County loan limits. Typically, the right guaranteed by the VA to cover any loss equals 25% of the total loan amount. Fortunately, a fantastic benefit of the VA loan program is the ability to buy without a down payment, which means servicemembers and veterans could avoid this common barrier to homeownership. The main advantages of a VA loan is that a zero down payment is required and there is no private mortgage insurance.).
