Can You Get More Than One VA Home Loan?
VA mortgages can't be used to buy investment or vacation homes.
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1 What Is the Difference Between a VA Home Loan & a CalVet Home Loan?
2 What Happens When You Walk Away from Your House with a VA Loan?
3 Where Can I Get a Replacement of My VA Certificate of Eligibility?
4 FHA Mortgage Programs for Restoring Homes
The Department of Veterans Affairs (VA) has guaranteed mortgage loans for millions of military veterans since 1944. Eligibility for a VA mortgage is generally limited to military veterans and, in special circumstances, eligible spouses. Also, as an eligible military veteran you can only have one VA mortgage at a time, though your eligibility is usually restored once your loan is paid off.
VA Mortgage Entitlement
The VA doesn't make mortgage loans to military veterans, it guarantees them. If you're a veteran and use a VA loan, the agency guarantees your lender it will repay a certain amount if you default. Also, your VA mortgage entitlement remains in effect for your lifetime. However, while you're in a VA loan, you're ineligible for another one. At the time of publication, the basic VA mortgage entitlement is $36,000, though lenders usually loan up to four times that amount without requiring a down payment.
Restoring VA Mortgage Entitlement
If you've used your VA mortgage benefit, you can restore your entitlement by meeting certain conditions. For example, you can obtain another VA mortgage if the property you bought with your loan has been sold and the loan paid in full. A one-time-only restoration of VA mortgage entitlement is available in cases where you want to keep your home after paying its VA loan in full. If another military veteran buys your home and assumes your VA mortgage, your entitlement may also be restored.
VA Mortgage Foreclosure
Some VA-guaranteed mortgages end up being foreclosed. If you're foreclosed and the VA pays a claim to your mortgage lender, your eligibility for another loan is lost, though it may be restored. To be eligible for another VA mortgage after your lender forecloses, you'll need to pay in full the amount of the claim the VA paid out. Under any circumstance, though, restoration of your VA loan eligibility isn't automatic and you'll need to reapply for it after it's either used up or lost.
Using a Remaining Entitlement
The VA guarantees a certain percentage of a mortgage's loan amount and the veteran doesn't have to use the entire entitlement at once. Even if you're unable to restore your VA mortgage entitlement, you can still use up any remaining guaranty you have. For example, if you have $15,000 of your VA mortgage entitlement remaining after foreclosure, you can apply it to a new mortgage loan. Your remaining VA-backed mortgage guaranty may just be enough to convince a lender to approve your mortgage application.
Military.com: History of the VA Loan
U.S. Department of Veterans Affairs: VA-Guaranteed Home Loans for Veterans
U.S. Department of Veterans Affairs: Summary of VA Home Loan Guaranty Benefits
U.S. Department of Veterans Affairs: Loan Limits
Veterans United Network: Occupancy Requirements for VA Loans
Tony Guerra served more than 20 years in the U.S. Navy. He also spent seven years as an airline operations manager. Guerra is a former realtor, real-estate salesperson, associate broker and real-estate education instructor. He holds a master's degree in management and a bachelor's degree in interdisciplinary studies.
Guerra, Tony. "Can You Get More Than One VA Home Loan?" Home Guides | SF Gate, http://homeguides.sfgate.com/can-one-va-home-loan-97824.html. Accessed 17 January 2020.
Guerra, Tony. (n.d.). Can You Get More Than One VA Home Loan? Home Guides | SF Gate. Retrieved from http://homeguides.sfgate.com/can-one-va-home-loan-97824.html
Guerra, Tony. "Can You Get More Than One VA Home Loan?" accessed January 17, 2020. http://homeguides.sfgate.com/can-one-va-home-loan-97824.html
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