Can I Get a Second VA Home Loan? | Entitlement Explained

Can I get a second VA home loan?

Yes, if you already have a VA loan — or if you’ve previously used a VA-backed loan — you can get another one.

In this article (Skip to...)

• Can I use the VA loan program more than once?
• What is VA entitlement?
• How to get another VA loan
• Restoring your VA entitlement
• Getting two VA loans at the same time
• Buying a second home with a VA loan
• How to get a second VA loan
• Second VA loan FAQ
• Bottom line: Second VA loans

Can I use the VA loan program more than once?

Yes, military borrowers can use the VA loan program more than once. There are three different ways military homebuyers can be eligible for another VA loan.

Keep in mind that you’ll pay a slightly higher VA funding fee for a second VA mortgage.

What is VA loan entitlement?

VA loan entitlement is the amount that the Department of Veteran Affairs is willing to guarantee for a VA borrower. Essentially, it’s a promise that the VA will cover the mortgage lender’s losses up to 25% of the indicated amount. This guarantee serves a similar function to a down payment on a conventional loan.

Your Certificate of Eligibility (COE) confirms the specifics of your military service and will indicate the amount of your VA entitlement. A VA lender can help you to request it.

Previously, the full basic entitlement for a VA borrower was $144,000. That meant a VA borrower could get a mortgage up to a maximum amount of $144,000 without a down payment. However, in 2020, the Department of Veterans Affairs eliminated VA loan limits, meaning that a VA borrower with full entitlement is no longer limited to $144,000.

Full VA entitlement

Military borrowers who have access to the full amount of their VA loan benefit are considered to have “full entitlement.”

You may have full VA entitlement amount if:

• You are an eligible borrower who has not used their home loan benefit
• You are an eligible borrower who has repaid your first VA loan in full and sold the property
• You are an eligible borrower who had a foreclosure or short sale but repaid the loan amount in full

Reduced VA entitlement

VA borrowers who have already used their VA home benefit may only have access to a reduced benefit — their VA entitlement less whatever is currently in use on their outstanding VA loan. However, even with a reduced benefit, you may be able to get a VA loan, and it can still be a good financial option.

You may have reduced entitlement if:

• You are an eligible borrower with a VA loan you are currently repaying
• You are an eligible borrower who has repaid a previous VA loan and still owns the home
• You are an eligible borrower who has refinanced your VA loan into a non-VA loan
• You are an eligible borrower who had a short sale and did not repay the VA loan in full
• You are an eligible borrower who experienced foreclosure on a previous VA loan

How to get another VA loan

If you’re interested in getting another VA loan, you have a few options.

Pay off your current VA loan

If you’ve had a VA loan in the past and you’ve paid off the full loan amount then you should be able to get another VA mortgage loan. You’ll need to go through the same application process and restore your entitlement.

Another military borrower assumes your current VA loan

If another VA-eligible borrower assumes your VA loan then you can restore your entitlement and use the VA loan program again.

Use your remaining entitlement

If you haven’t used your full entitlement then you may be able to use the remaining amount to get a new VA loan.

Under these circumstances, if you have enough entitlement left over, it could be possible to have two open VA loans at the same time. However, this is uncommon and you would need to demonstrate qualifying income and credit to be able to afford the monthly payment for both mortgages.

Restoring your VA mortgage entitlement

VA borrowers have options for restoring their VA entitlement.

The most efficient option is to sell the property you purchased with a VA loan. But, you can also apply for a one-time restoration of your entitlement. This process won’t require you to sell your home, though you will need to repay the loan in full before you can get a second loan through the VA.

To kick off this process, you’ll submit VA Form 26-1880. An experienced VA loan officer can help you get started.

Getting two VA mortgages at the same time

It is technically possible to have two VA loans at the same time. To do so, you would need enough remaining entitlement for a new loan, on top of your existing one.

Generally, if you’re interested in getting a new VA loan, the best option is to pay off the original VA loan in full. Keep in mind that the VA home loan benefit has occupancy requirements, which means you’ll likely need to be planning to move into the new home in order for it to be eligible for a VA loan. The program cannot be used to purchase a rental property or investment property.

Buying a second home with a VA loan

Technically, you can use a VA loan to purchase a second home but there are a number of rules you will need to follow.

You’ll need to have remaining entitlement and you’ll need to demonstrate that you’re financially prepared for the mortgage payments of an additional loan. However, you’ll also need to demonstrate that the second VA loan provides at least one “net tangible benefit.”

Qualifying net tangible benefits include:

• Relocation closer to a new duty station
• Eliminating monthly mortgage insurance
• Accessing a shorter loan term
• Locking in a lower interest rate or monthly payment
• Refinancing from an ARM to a fixed-rate mortgage

How to get a second VA loan: Step-by-step

To get a second VA loan, you’ll need to start by determining how much remaining entitlement you have.

Once you’ve done that, the process for a second loan program is very similar to the process you went through the first time.

The VA home process steps include:

• Obtain your Certificate of Eligibility (COE)
• Get pre-approved for a loan amount
• Go shopping for a new home
• Underwriting and VA appraisal
• Close the loan and move in

Second VA loan FAQ

Can I use a VA loan to buy a vacation home or investment property?

No, the VA loan program is intended to enable military borrowers to purchase a primary residence and cannot be used to purchase a vacation home or investment property.

Can I get a second VA home loan?

Yes, it’s possible to get two VA loans. To do so, you’ll need to have remaining entitlement or you’ll need to restore your entitlement.

Can you have two VA loans at the same time?

Yes, it’s possible to have two VA loans at the same time for two different homes. However, the properties will need to meet the VA program guidelines, which are quite strict. For example, a military borrower may be able to obtain a new VA loan if they receive a permanent change of station (PCS) and need to relocate to a new primary residence.

Can you have two VA loans in the same city?

You cannot have two VA loans in the same city as this would not meet the occupancy requirements for VA loan eligibility.

Can I use a VA loan twice?

You can use the VA loan program as many times as you would like but you’ll need to restore your entitlement — or use your reduced entitlement — for subsequent loans after your first home purchase.

How long do you need to wait between VA loans?

You will need to wait at least 210 days after the due date of your first monthly mortgage payment before you can seek a new VA loan.

How many VA loans can you have in a lifetime?

Theoretically, you can take out an unlimited number of VA loans during your lifetime. Just keep in mind that you’ll need to restore your entitlement somehow between loans.

Can you assume a VA loan if you already have one?

VA loans are assumable, which means another eligible VA borrower can take over your current home loan with all its existing terms. Whether or not you can assume a VA loan while you have a current VA mortgage will depend, again, on how much remaining entitlement you have.

What is the VA funding fee?

The VA funding fee is a percentage of the total loan amount paid upon closing, and that funds the continued operation of the VA home loan program.

Bottom line: Second VA loans

The VA loan program is intended to help eligible veterans, active-duty service members, and surviving spouses to purchase a primary residence. As such, the program requirements may be restrictive if your goal is to purchase a second home.

Still, if you and your intended property are eligible for the VA loan program, it’s likely to be your best option. These loans feature significant benefits, including:

• No down payment requirement
• No private mortgage insurance
• Competitive interest rates, compared to FHA and conventional loans
• Flexible credit score and debt-to-income (DTI) requirements