How many times can you use a VA loan?

If you’re planning to purchase a new home soon but you’ve already used a VA loan in the past, you may be wondering how many times you can use a VA loan. As long as you’re eligible, you can use your VA home loan benefit as many times as you’d like. You may even be able to have multiple VA loans at the same time under certain conditions.

Let’s dive in to learn more about repeat VA loans, VA loan entitlements, how you can take out a new VA loan without selling your house, and more.

How many VA loans can you have?

It’s possible to have more than one VA loan at the same time, but you can only use a VA loan to purchase a primary residence, in agreement with their occupancy requirements. Since you can only have one primary residence at a time, that usually means you can only have one VA home loan at a time.

There is an exception to this rule. You can have two VA loans at the same time for two different primary residences if you are moving due to a permanent change of station (PCS) order. The time you are permitted to own both residences is limited. Typically, you’ll have to set an occupancy date of less than a year after getting the loan.

For example, a veteran can keep one VA-financed home as a rental (after PCS or relocation) and then purchase a second primary residence using remaining entitlement.

In short, VA rules keep you from simply buying a second home as a financial or lifestyle choice. If your military service makes it difficult to move without owning two homes for a time, however, that’s a different story.

Also, be aware that there is no maximum or limit on how many times you can get a VA loan. You can use a VA loan an unlimited number of times; so long as you have remaining entitlement, you typically always have the option to obtain another VA loan.

What is a VA loan entitlement?

Your VA loan entitlement refers to how much of your loan the VA will guarantee, not the loan amount itself. Put simply, it’s how much the VA will pay your lender if you default on the loan. If you’re eligible for a full VA loan entitlement, it usually means you don’t have to make a down payment.

Understanding VA loan entitlements is important for all VA loan borrowers, but it’s especially relevant to individuals with PCS orders who are considering buying a second home before they sell their first.

How VA loan entitlements work

If you are eligible for a VA loan but don’t currently hold one, you’ll typically have what’s known as “full entitlement.”

For loans of less than $144,000, the VA will guarantee up to $36,000. This is sometimes referred to as your basic entitlement. Of course, it may be hard to find homes at this price point. The VA also guarantees up to 25% of the borrowed amount for loans that exceed $144,000. This is called “bonus entitlement” or “second-tier entitlement.” There is currently no loan limit that caps the amount the VA will pay 25% on. Your lender will determine what you can afford and approve you for that amount.

The downside is that if you already have some of your entitlement tied up in a VA loan that you’re currently paying off, or if you defaulted on a previous VA loan, your entitlement amount is reduced. This limits how much you can take out without having to put your own money down.

How to figure out how much entitlement you have left

To determine how much entitlement you have left, you or your lender must request a Certificate of Eligibility (COE) from the VA through VA.gov. The COE will show if your entitlement is full or partial, and it will also list any VA loans currently charged against entitlement.

To calculate out how much entitlement you have left while you still hold another VA loan, use this formula:

(Maximum entitlement for your county x .25) – entitlement used by current loan

The result from this equation is how much entitlement you have remaining.

If you want to understand how much you can borrow without making a down payment, multiply your remaining entitlement by four. If the size of the loan you want to borrow exceeds this amount, you may need to budget for a down payment.

Taking out a new VA loan without selling your house

You can get a new VA loan without selling your current home. As covered earlier, the ability to get new consecutive VA loans typically remains a benefit for life.

But be aware that the new loan can’t be for an investment property or second home. Remember: VA loans need to be used for your primary residence; any new or next home you purchase with a VA mortgage must be your primary residence, and you’ll need to designate your current/previous home as an investment property or second home.

You will also need to apply for a restoration of entitlement, as the entitlement is usually restored when you sell your current home. Restoration of entitlement is the process of getting the amount of your used entitlement back so you can use your full VA benefits once more for a new home purchase. However, this type of restoration is usually only available once.

“In my Colorado Springs market, I’ve seen this used by people who want to keep their first home as a rental but still use VA benefits again,” says Realtor Andrew Fortune. “Just know that the VA will confirm that you are really moving into the new house, so don’t play games with your address or intent. And always talk to a lender first so that the paperwork goes through without delays.”

To recap, if you want to take out a new VA loan without selling your house, you’ll need to:

Pay off your current VA loan to be eligible for a new one.

Have sufficient remaining entitlement to cover the guarantee requirement for the new loan.

Meet the primary residence occupancy requirement.

Designate the home you are moving out of as an investment property or second home.

Not be in default on your prior VA loan.

Apply for a one-time restoration of entitlement when you sell your current home or a subsequent use with remaining entitlement if your entitlement is tied up in the previous home.

What if your VA loan is not paid off but you want a second property?

If your current home isn’t paid off, you still have options.

Want to turn your existing primary residence into an investment property and buy a new home with a VA loan? You can refinance your current primary residence into a conventional loan and restore your entitlement that way. Then, you can use a VA loan for your new primary residence while renting out the home you lived in previously. If you choose this route, you may be able to apply for a restoration of entitlement if the property has been paid off but not sold.

“If you don’t have full entitlement available, you can still get a VA loan with a down payment for the part of the loan that isn’t guaranteed,” notes Dennis Shirshikov,a professor of finance and economics at City University of New York/Queens College. “If you’ve paid a previous VA loan in full, you can ask the VA to restore your one-time only privilege.”

Shirshikov adds that a common option among VA-eligible borrowers is to instead use a conventional mortgage or FHA loan to purchase their second home, leaving their VA loan available to buy a primary residence and avoid the duplication of VA funding fees.

“One unorthodox route I recommended was when a client of mine used a small down payment and leftover entitlement to take out a second VA loan. Later, he refinanced both properties into one conventional portfolio loan to simplify payments and lower fees,” he adds.

The bottom line: For consecutive VA loans, there’s usually no limit

The good news is that you can use your VA loan benefit multiple times, and even hold more than one VA loan at once, provided you meet specific requirements, like having enough remaining entitlement and occupying the new home as your primary residence. While there’s no official limit on how many times you can use a VA loan, understanding your entitlement and following VA occupancy rules are key to securing a new loan, particularly if you plan to keep your current home or convert it into a rental. But if you’re planning to own two homes at the same time due to a PCS order or if you want to buy an investment property, it can get a little more complicated.

Eager to apply for a VA loan? Get started by preparing for one of the first steps in the approval process: securing your certificate of eligibility (COE). Rocket Mortgage® can help you secure your COE and move forward in the home buying process if you apply online today.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.