The VA loan benefit can be used more than once. There is no limit on the number of times and no expiration date.
NewDay USA helps with three parts of that.
- NewDay loan specialists can pull your Certificate of Eligibility so you know what entitlement you have left.
- A NewDay VA Loan Expert does the VA loan paperwork.
- Several company programs reduce what is due at closing.
Your VA Benefit Doesn’t Expire
What determines whether you can use it again is your entitlement, meaning how much of the VA guaranty is currently committed to a loan. Entitlement can be restored. VA sets out the conditions, which include:
- Selling the home and paying the prior loan in full
- Having an eligible Veteran assume the loan
- Paying the loan in full while keeping the home, which can be done once
What Reuse Looks Like
The VA home loan is designed for primary residences only. You cannot use a VA loan to buy a second home or an investment property.
If you have remaining entitlement, you may be able to use a VA loan to purchase another home even if you already have a VA loan on your current home, provided you plan to make the new home your primary residence.
Start With Your Certificate of Eligibility
Your Certificate of Eligibility shows your entitlement and what has been charged against it. NewDay USA loan specialists can pull your COE on your behalf and walk you through the eligibility requirements.
Restoration is not automatic in every case. Where a prior loan has been paid in full but the home was not sold, VA requires a request to restore entitlement. VA states you can request a COE with an entitlement restoration online yourself, or ask your lender to submit that application on your behalf.
The Paperwork Gets Handled
Your agent works with a dedicated NewDay VA Loan Expert who does the VA loan paperwork for you.
In some cases you can have the keys in as little as thirty days.
Reducing What Is Due at Closing
NewDay Home
With NewDay Home, Veterans don’t need to come up with a down payment.
Closing costs are addressed separately, through the Advantage Loan discussed below.
The NewDay Home Advantage Loan
The Advantage Loan is an unsecured personal loan designed to work with a NewDay Home Mortgage. It covers the closing costs on your purchase. Rather than paying those costs upfront, you borrow to cover them, which leaves your own savings available for other things.
There is a monthly payment, due on the same date as your NewDay Home Mortgage payment, and you receive a separate statement for each loan every month. If you don’t close on the home, you didn’t obtain an Advantage Loan, so nothing is owed.
Deposit Boost for Veterans
Admiral Lynch created Deposit Boost for competitive markets, where NewDay USA's aim is to make a Veteran's offer stand out.
Deposit Boost increases your earnest money deposit, allowing you to compete like a cash buyer. NewDay USA wires up to $5,000 directly to the title company's escrow account as a buyer-provided deposit. It carries 0 percent interest with no payments for 90 days, during which you should close on the home. The funds are reimbursed to NewDay USA at close of escrow, with no payment needed from the Veteran and no cost.
If it runs longer than 90 days, the loan is payable at 9.99 percent APR.
Admiral-Certified Real Estate Agents
NewDay USA connects you with an Admiral-Certified Real Estate Agent in your area. These agents are hand-selected by NewDay USA for their experience with the VA home loan program.
Three caveats apply. They are not employed by NewDay USA, they are not available in all areas, and the relationships and terms are subject to agreement with licensed brokerages and agents.
The Funding Fee on a Subsequent Use
Generally, all Veterans using the VA home loan guaranty benefit are required to pay the funding fee. The percentage depends on the loan type, the down payment amount, and whether this is a first-time or subsequent use of the benefit. It typically runs between 0.00 and 3.3 percent of the total loan amount.
You are exempt if you receive VA compensation for a service-connected disability, if you would be entitled to that compensation but receive retirement or active duty pay instead, or if you are the surviving spouse of a Veteran who died in service or from a service-connected disability.
Exemption depends on your status, so it is worth confirming before closing.
FAQs
How many times can I use my VA loan benefit?
There is no limit on the number of uses and no expiration. What matters is how much entitlement is available at the time.
Can I have two VA loans at once?
It is possible where you have remaining entitlement and the new home will be your primary residence.
Can I use a VA loan for a rental or vacation property?
No. The VA home loan is designed for primary residences only, not second homes or investment properties.
How do I find out how much entitlement I have left?
Your Certificate of Eligibility shows it. NewDay USA loan specialists can pull your COE on your behalf.
Will I pay the funding fee again?
Generally yes, and the percentage differs between a first-time and a subsequent use. Veterans who qualify for an exemption do not pay it.
