VA Loan is a lifelong benefit and doesn’t have a limit on the number of times you can use the program but you must have enough entitlement.
VA loans offer many benefits, including competitive interest rates and no down payment but what if you’ve already used your benefit to purchase a home?
Can you use it again?
Let’s find out.
How many times can a VA loan be used?
There are no limits to how many times you can use a VA loan as long as the loan is for your primary residence and you meet the loan requirements.
There is however, a limit on how many VA loans you can have at the same time.
VA loans at the same time.
It’s possible to have more than one VA loan at the same time, as long as you are able to qualify for both mortgage payments and have enough entitlement.
VA Entitlement
Every Veteran has a basic and bonus entitlement.
- Basic Entitlement is $36,000
- Bonus depends on the county you are purchasing in
VA entitlement is the amount that the Veterans Administration is going to guarantee a mortgage lender if you end up defaulting on your home loan.
Generally, the VA will guarantee up to 25% of your total loan amount. The exact amount you’re entitled to will vary based on your location and some other factors.
Since the VA will guarantee 25% of the total loan amount, this gives you a purchase price of $144,000 to work with ($36,000 x 4).
If you’re looking to purchase a home priced higher than $144,000, than you’ll use your bonus entitlement. Bonus will depend on where you’re buying a home.
In expensive areas like San Diego, the bonus entitlement amount would be higher than an area in Texas or Florida.
So, if you are looking to have two VA loans at the same time, there needs to be enough entitlement remaining for VA to guaranty the 25% on the new home.
If there isn’t enough to cover the new loan, you can make a down payment to qualify. The down payment is often lower than what you would pay on other loan programs.
Are there loan limits for a VA loan?
There are loan limits but it only applies if you are looking to have two VA loans at the same time, or had a VA loan that was defaulted on and resulted in a foreclosure or a short sale.
VA Funding Fee when using VA loan again.
Borrowers must pay a funding fee unless you receive VA disability pay. Disabled vets are exempt from this fee.
The funding fee is generally 2.3% of the loan amount for first-time borrowers, and 3.6% for subsequent loans.
The funding fee can be rolled into the loan.
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