How Many Times Can You Use a VA Loan?

If you ’ ve served in the U.S. military, you likely already know you ’ re entitled to sealed benefits. One of the most coarse is the VA lend, which can be used to purchase a home for no money down. The best partially about all of this ? You can use it more than once .

Let ’ s take a expect at how and when to use your VA loanword a well as how many times you can take advantage of this product .

Key Takeaways

  • Eligible veterans and service members can get a VA loan as many times as they’d like as long as they meet certain criteria.
  • It’s possible to have more than one VA loan at once, although requirements are different for second loans.
  • There is no cap on the amount you can borrow on your first VA loan. Your second VA loan will be capped depending on where you live.

Who Can Get a VA Loan ?

The VA has identical specific criteria that you ’ ll need to meet to be eligible for a VA loan. These differ depending on what time period you served and whether you were on active duty, in the reserves, or in the National Guard .

generally speaking, if you began your overhaul after Aug. 2, 1990, and you were an active-duty service penis, your eligibility for a VA lend will require that one of the pursue circumstances applies to you :

  • At least 24 continuous months of service
  • At least 90 days during which you were called or ordered to active duty
  • Fewer than 90 days if you received a discharge for a service-connected disability
  • At least 90 days if you were discharged for a hardship, the convenience of the government, or a reduction in force

furthermore, to be eligible for a VA loanword, you besides can not have received a dishonorable, other-than-honorable, or bad-conduct discharge .

How many Times Can You Use a VA Loan ?

fortunately for veterans and service members, you can use a VA lend as many times as you wish .

This doesn ’ triiodothyronine mean you can hold outright numbers of loans ; each avail penis receives a specific sum of “ entitlement. ” Your basic entitlement is $ 36,000, which means that if you ’ ve got a home lend under $ 144,000, the VA guarantees your lender that they ’ ll pay $ 36,000 in the event of default option. For loans over this total, the VA will pay improving to 25 % of the lend measure. It ’ sulfur authoritative to note that these aren ’ t the limits to how a lot you can borrow. If you ’ ve got broad entitlement, the VA won ’ thyroxine set a terminus ad quem on how much your loanword can be .

even if you ’ ve already used your VA loan, you can calm use it again. If you ’ re looking to restore your full entitlement, you ’ ll necessitate to have paid off your lend in wide and no longer own the property .

You can still qualify for your full entitlement even if your base was foreclosed equally long as you ’ vitamin d paid the VA rear in entire.

How To Get a Second VA Loan

If you have an existing VA lend, you can silent get another in certain cases. You don ’ t need to have broad entitlement to qualify for a second gear lend ; in this case, you ’ ll have “ remaining entitlement. ”

There are plenty of situations in which you may need to get a second VA loanword. One common situation is when a service member receives orders to a new place. For whatever reason, they choose not to sell their existing home—which is financed by a VA loan—and besides want to purchase another property at their new duty station .

other situations include when you ’ ve :

  • Paid off the loan but still own the property
  • Had a foreclosure and haven’t paid back the loan
  • Refinanced the home with a non-VA loan

When using your remaining entitlement, the amount you can borrow depends on county lend limits. These limits match those set by the Federal Housing Finance Agency ( FHFA ) and will vary according to the monetary value of animation in each sphere. The VA will either cover 25 % of the loan limit minus the entitlement already used or 25 % of the county limit, whichever is less.

This means if you ’ re in a depleted cost-of-living area and you wish to purchase an expensive home, you may need to front your devour payment to meet that 25 % guarantee for your lender .

Calculating Your remainder

Say you ’ ve already used $ 50,000 of entitlement and you ’ re considering a $ 250,000 loan in a county with an FHFA lend specify of $ 500,000. Your remaining entitlement will be the lesser of :

$ 500,000 x 25 % = $ 125,000 – $ 50,000 = $75,000

OR

$ 250,000 x 25 % = $62,500

In this case, because the second figure is lower, your remaining entitlement for an extra mortgage is $ 62,500 .

This calculation of remaining entitlement only applies to homes that cost more than $ 144,000.

When To Use a VA Loan

Using a VA loan can be an excellent choice in a number of situations, including when you :

  • Don’t want to make a down payment
  • Want to make a down payment but not the standard 20% rate
  • Want to avoid private mortgage insurance (PMI), which VA loans do not require

frequently Asked Questions ( FAQs )

Is there a limit to how many times you can use a VA loan once all have been paid in full?

No, there is no limit on the phone number of times you may use your entitlement. To “ restore ” your entitlement to its full amount and habit it again, you must have paid off your former loanword ( s ) in full and no long own the home ( randomness ). After that, you may use it again .

Can a person get a VA loan more than once?

You can get a VA loanword more than once, although you will have to meet certain requirements. For an extra full entitlement loan, you must have paid off your previous VA loan in wide and you must no longer own the dwelling. For partial derivative entitlement, you will need to have remaining entitlement and the loan must fall under FHFA county lend limits.

Can I have a second VA loan?

Yes, you can have more than one VA loanword at a time. however, the amount you ’ ll be allowed to borrow on a second loanword depends on where you live and how much of your entitlement remains unused from your existing VA lend .

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Category : Finance

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