Can You Use the VA Home Loan More Than Once?

In our capacity as a mortgage broker in South Carolina, we frequently have the opportunity to work with service members, military vets, and their families. Among the most valuable benefits that service members have is that of a VA home loan. And among the most frequent inquiries that we receive is in regards to how you can use the loan. So, can you use the VA home loan more than once?

In this tutorial, we will explain how you, as a borrower, will be able to use your entitlement to a VA loan repeatedly and will walk you through all that entails so that you might unlock new avenues with regards to your buying of a home.

Decoding VA Loan Eligibility

First, let’s briefly highlight those eligible for a VA loan. This type of loan is intended for active military personnel, as well as honorably discharged veterans and surviving spouses. In order to meet the service qualification criteria for this type of loan, you will have to meet particular conditions depending upon your military service era. 

What’s more, you will need a Certificate of Eligibility that verifies your qualifications regarding military service. But it’s not always the best option. If you are considering a higher property value, for example, you’ll wan to compare the jumbo loan rate in South Carolina with VA loan amounts above standard limits.

How to Get a Second VA Loan

The ability to make multiple uses of your VA loan benefit is related to your “entitlement.” Entitlement is also known as “loan guarantee entitlement,” and it is the amount of your mortgage that the VA guarantees. This will often suffice to guarantee a second mortgage for most vets, either through remaining entitlements that come from a prior purchase or through restoring your entitlement through a paid-off mortgage.

You are allowed to have two VA loans simultaneously. This is possible when you have not utilized your full entitlement value in your first home purchase. For instance, if you purchased your home at a price significantly lower than the county loan limits, you may have a remaining “bonus entitlement” that will enable you to finance your purchase of a second house. 

This is one of the common methods applied by military service members when they receive a Permanent Change of Station order and need to purchase a new house. The process of using the VA loan twice often raises questions, and we’re here at BrickWood Mortgage to clarify how it can work for your situation.

Restoration of Your VA Loan Entitlement

What happens if you have already utilized your entire entitlement? You can get your entitlement back. In fact, the most common means of getting your entitlement back is when you sell your new home that you bought through a VA mortgage and pay off the entire mortgage in full. After you have paid off your mortgage in full, you are now qualified to have your entire entitlement returned.

Another form of restoration is known as one-time restoration. This is an option that is offered if you have already paid off your VA loan, and you also own it. This will permit you to apply your restoration benefits in purchasing a new property while you retain your current property, perhaps renting it out. 

A common client question is…how often can you use a VA home loan? The answer depends on the restoration of your entitlement, but under most circumstances, you can reuse the benefit throughout your lifetime as long as eligibility requirements are met.

Maximize Your VA Loan Benefits

Your VA home loan benefit is an asset that you can use in your lifetime, not just when you are buying your first home. So, whether you are relocating because of a new posting, looking to upgrade your home, or investing in real estate, your VA home loan benefits can be reused. If you are a veteran in South Carolina thinking about your next step, we are here at BrickWood Mortgage to assist you in making the most of your well-deserved benefits!