How Many VA Loans Can You Have?

One of the most common misconceptions about VA loans is that you can only use the benefit once in your lifetime. This myth stops some Veterans from fully utilizing one of the most valuable benefits they've earned through their service. 

You can use your VA loan benefit multiple times throughout your life, and in some cases, you can even have more than one active VA loan at the same time, depending on your available entitlement and whether you've sold previous properties or retained them as rentals. 

Understanding how VA loan entitlement works and when it can be restored helps you maximize this benefit throughout your entire homeownership journey. This guide explains exactly how many VA loans you can have, how to restore your entitlement, and strategies for using your benefit multiple times.

Understanding VA Loan Entitlement

Your entitlement is the amount the VA will guarantee on your loan, which allows lenders to offer favorable terms without requiring a down payment.

Veterans with full entitlement can generally purchase homes up to the conforming loan limit in their county with no down payment. When you use a VA loan, your entitlement is tied to that property. When you sell the property and pay off the loan, your entitlement becomes available to use again.

Can You Use Your VA Loan Benefit More Than Once?

Yes. There's no limit to how many times you can use your VA loan benefit over your lifetime. Whether you've used it once or multiple times before, you can use it again as long as you meet the eligibility requirements.

The key factors are whether you've restored your entitlement by selling previous properties and paying off the loans, or whether you have sufficient remaining entitlement to purchase another home while keeping your current one.

Restoring Your Full Entitlement

The most straightforward way to reuse your VA benefit is to restore your entitlement after selling a home financed with a VA loan.

How Restoration Works

When you sell your home and pay off your VA loan in full, your entitlement is automatically restored. You don't need to apply for restoration in this case. The payoff of your loan frees up your entitlement for future use.

You can then purchase another home using your full VA benefit. There's no waiting period between selling one home and buying another with your restored entitlement.

One-Time Restoration for Assumptions

In certain situations where your loan was assumed by another qualified Veteran, you may be eligible for a one-time restoration of entitlement even if you haven't sold the property.

To qualify for this one-time restoration, the person assuming your loan must be an eligible Veteran who agrees to substitute their entitlement for yours. The assuming Veteran must also meet income and credit requirements to assume the loan. This option is uncommon but can be valuable in specific situations.

For example, say John used his VA loan to buy a home near Fort Bragg in 2019 at a good interest rate. In 2022, he received PCS orders to Germany for a multi-year assignment. Rather than selling, John found another Army Veteran, Mike, who was transferring to Fort Bragg and wanted to assume John's low-rate loan.

Mike was VA-eligible and met all the credit and income requirements to assume the loan. By substituting his own VA entitlement for John's, Mike took over the loan payments. This freed up John's entitlement so John could use it again.

Having Multiple VA Loans at the Same Time

You can potentially have more than one active VA loan at the same time if you have sufficient entitlement and meet certain conditions.

When Multiple Loans Are Possible

If you have full entitlement and purchase a home below the conforming loan limit for your area, you may have remaining entitlement available for a second purchase.

A common scenario involves military relocations. If you receive PCS orders and need to move but don't want to sell your current home, you may be able to use remaining entitlement to purchase at your new duty station while keeping your first home as a rental.

Calculating Remaining Entitlement

Your lender will calculate remaining entitlement for you. The basic concept is that your total available entitlement minus the amount currently in use on your existing VA loan equals your remaining entitlement.

Check the VA loan limits  to understand how much borrowing power you might have available. 

VA Loans and Rental Properties

VA loans require you to certify that you intend to occupy the property as your primary residence. You must move in within a reasonable time after closing, typically within 60 days, and use it as your primary residence.

However, once you've met the occupancy requirement, you can move out and rent the property. Many Veterans do this when they receive PCS orders or relocate. You can keep your VA-financed home as a rental and purchase another primary residence with remaining entitlement or a new VA loan after restoring entitlement.

You cannot use a VA loan specifically to purchase a property you never intend to live in as your primary residence.

Multi-Unit Properties and VA Loans

One way to maximize your VA benefit is purchasing a multi-unit property of up to four units. According to the VA, you can use a VA loan to buy a duplex, triplex, or fourplex as long as you occupy one of the units as your primary residence.

This allows you to live in one unit while renting the others, creating rental income that helps cover your mortgage payment. After you've met the occupancy requirement, you could move out and rent all units, then use remaining or restored entitlement to purchase another property.

Special Considerations for Multiple Loans

Having multiple VA loans comes with some additional considerations beyond just having available entitlement.

Residual Income Requirements

The VA requires that you have sufficient money left over after paying all debts and expenses. When you're carrying multiple VA loans, lenders will evaluate whether you have adequate residual income to support both properties.

If you're keeping your first home as a rental, you may be able to count rental income toward qualifying for your second loan, though lenders typically require documentation and may only count a percentage of the rental income.

Debt-to-Income Considerations

Your debt-to-income ratio includes all your monthly debt obligations. If you're keeping a home as a rental, that mortgage payment counts as debt even if you have a tenant paying rent. Lenders will evaluate whether you can afford both payments based on your income.

Working with lenders experienced in VA loans can help you navigate this successfully.

Common Scenarios for Multiple VA Loans

Let's look at some real-world situations where Veterans use their benefit multiple times or have multiple loans simultaneously.

Relocation: A Veteran buys a home using a VA loan. Three years later, they receive PCS orders to another state. The real estate market is soft, so they decide to rent their home instead of selling. They have enough remaining entitlement to purchase a home at their new duty station with no down payment while keeping the first property as a rental.

Upgrades: A Veteran uses their VA benefit to buy a starter home. Five years later, their family has grown and they need more space. They sell their starter home, pay off the VA loan, and use their restored entitlement to buy a larger home with zero down payment.

Owning Multiple Units: A Veteran buys a duplex using their VA benefit, living in one unit and renting the other. After meeting the occupancy requirement, they move out and rent both units. They still have remaining entitlement and use it to buy another property at their new location.

Steps to Use Your VA Benefit Again

If you're ready to use your VA benefit for another purchase, here's how to proceed.

First, determine your entitlement status. If you sold your previous VA-financed home and paid off the loan, your entitlement is already restored. If you still have an active VA loan, you'll need to calculate remaining entitlement with your lender.

Get pre-approved with a VA-experienced lender who can explain the specifics of your situation. They'll pull your Certificate of Eligibility and calculate exactly what you qualify for.

Start your home search understanding your borrowing capacity and any down payment requirements if you're using remaining entitlement rather than fully restored entitlement.

Protecting Your VA Benefit for Future Use

Your VA loan benefit is valuable. Always make payments on time to maintain your good standing with the VA. If you run into financial trouble, contact your lender immediately about VA loss mitigation programs rather than letting the loan go into default.

Making the Most of Your VA Loan Benefit

Your VA loan benefit is one of the most valuable financial tools available to you. Understanding that you can use it multiple times throughout your life opens up possibilities for achieving your homeownership goals at different life stages.

Whether you're buying your first home, upgrading as your family grows, relocating for work, or pursuing other real estate goals, your VA benefit can support you. Read more about VA loans and see how you can use your VA loan benefit and take the next step in your homeownership journey.

FAQs

If I used my VA loan years ago, can I use it again now?

Yes. If you sold that home and paid off the loan, your entitlement was restored and you can use it again. 

Can I have a VA loan and a conventional loan at the same time?

Yes. Having a VA loan doesn't prevent you from also having a conventional mortgage on a different property. 

Do I need to refinance my current VA loan before getting another one?

No. If you have remaining entitlement, you can get a second VA loan while keeping your first one active. If you're selling your current home, you'll pay off that loan during the sale and your entitlement will be restored.

Can my spouse and I each use our VA benefits separately?

Yes, if both spouses are Veterans with VA loan eligibility, you each have your own entitlement. You can combine your entitlements to purchase one property together with a larger loan amount. Using entitlements separately for different properties is complex and requires careful planning with your lender.

What happens to my VA loan benefit if I file bankruptcy?

You usually need to wait two years after Chapter 7 bankruptcy discharge. Bankruptcy doesn't eliminate your VA loan eligibility, but you'll need to meet waiting period requirements before using the benefit again. The VA evaluates your overall financial situation and has flexibility in considering past credit issues.