The VA loan process provides some significant perks for service personnel, veterans, and some qualified spouses. It is one of the only mortgage alternatives that allows borrowers to purchase a home with no mortgage insurance and no down payment.
However, there’s another noteworthy advantage that gets less attention, one that every borrower should know. It’s possible to utilize a VA loan more than once. And there’s technically no limit to how many times you can utilize it.
In this article, we dig into the complexities of VA home loans, analyze the options, and answer commonly asked concerns about the topic. Join us as we address questions such as “Can a VA loan be used more than once?, How many times can you use VA loan?, and shed light on the complexities of using this essential home financing option several times.
Understanding the multiple use of VA loan is critical for making educated decisions on your homeownership journey. Whether you’re an experienced homeowner or a first-time buyer.
You Could Use a VA Loan More Than Once
A few years ago, the United States Department of Veterans Affairs set out to dispel myths and misconceptions regarding VA loan reuse. Such as the belief that they can only be utilized once. One of the points they talked about is associated with the title of this article: the ability to utilize a VA loan more than once.
Regarding the misconception that it’s a one-time advantage, the VA.gov article explained:
“This is not a one-and-done benefit. Qualified Veterans can use the VA Loan Guaranty Program over and over again. In fact, it’s possible to have more than one active VA Loan at the same time. Even losing a VA Loan to foreclosure doesn’t mean you’re no longer eligible.”
That is the most important takeaway from this article. Your VA home loan benefit is more than just a one-and-done deal. If you match the VA loan program’s eligibility and qualifying criteria, using VA loan multiple times is not an issue.
Unfortunately, many veterans are unaware that they have this type of entitlement. That is one of the reasons we work so hard to spread the word!
Restoring Your Entitlement
The Department of Veterans Affairs uses “entitlement” to describe how a military member or veteran can use a VA loan more than once. When you are “entitled” to a benefit, it indicates you can use it to the greatest degree feasible.
In a home-buying scenario, a borrower with full entitlement could buy a home with no down payment for VA loan. When you utilize a VA loan to purchase a home, you’re also using up your entitlement.
However, if you sell your home or pay off your mortgage in full, your entitlement is “restored.” This procedure is critical to comprehending the multiple uses of VA loans. Allowing borrowers to reap the benefits of using VA loan repeatedly.
Here’s how the benefit restoration process usually works:
When a qualifying borrower utilizes a VA loan for the first time. A portion of their VA loan entitlement is used to guarantee the loan. This is like the government’s promise to cover a portion of the loan if the borrower cannot repay it.
Selling or Paying Off the Loan
To use the VA loan program again. The borrower must either sell or fully repay the previous VA loan. This releases the entitlement that was previously utilized.
Restoration of Entitlement
The borrower can seek a restoration of their VA loan entitlement after selling or paying off their first VA loan. This essentially “resets” their eligibility to use the VA loan program again.
With the restored entitlement, the borrower is eligible for another VA loan to purchase a new house. They are free to repeat this process as often as they choose as long as they fulfill the qualifying conditions each time.
This method can be repeated several times by buying and selling houses over time. You can take the benefit of using VA loan more than once as needed as long as you tick all the boxes to restore your benefit. It is a lifetime advantage.
However, the requirements differ for someone who pays off a VA loan. Keeps the home, and wants to purchase another property. The “one-time” restoration typically applies in these cases.
According to the VA.gov website: “Eligible Veterans and Servicepersons can receive a one-time restoration when they pay off the VA loan, but keep the home. This scenario comes into play if you purchased the home long ago and have paid off the loan. It also applies if you have refinanced the VA mortgage with a non-VA loan.”
With the one-time restoration of entitlement, the borrower can now be eligible for a VA loan for second home to acquire a second property while maintaining the first. This can be a terrific choice for people wishing to keep their current home while purchasing a new one with a VA loan.
The flexibility of using VA loans repeatedly emphasizes the program’s worth for veterans who want to buy a house more than once throughout their lives. The borrower can confidently handle these processes if they match the qualifying criteria for a VA loan for a second home, VA loan for investment property, or any future home acquisition.
Even features like VA Loan credit score and VA Loan application become simple, guaranteeing that veterans, regardless of credit background, can obtain this vital benefit effortlessly.
Your Benefit Never Expires
Veterans and service members should also know that their VA loan benefits never expire. Once you’ve acquired program eligibility via your time in service, it will never go away.
Individuals who served in the military 20, 30, or even 50 years ago may wonder if they can still use a VA loan to buy a home today. The answer is positive if eligibility can be determined using the VA’s database.
To determine your eligibility, you must first get your DD Form 214. A VA-approved mortgage lender can then use the document to seek your Certificate of Eligibility (COE) on your behalf. You can also request a COE through the VA’s eBenefits website.
The bottom line here is that you might be eligible to buy a home with a VA home loan even if you served a long time ago. You earned it, so you might as well use it.
As you can see, there are VA loan multiple applications for qualified borrowers. With its zero-down option and repeat-use capacity. This program helps home buyers overcome some of the most significant barriers to homeownership.
Veterans can navigate several home purchases thanks to the VA loan program’s continued eligibility and flexible considerations. This demonstrates the program’s dedication to inclusion and responsiveness to various financial needs.