Yes, it is possible to get a VA home loan more than once. The Department of Veterans Affairs (VA) allows eligible veterans, active-duty service members, and surviving spouses to utilize their VA home loan entitlement multiple times throughout their lifetime. This flexibility provides veterans with opportunities to purchase or refinance homes at different stages of their lives. However, there are certain conditions and guidelines that borrowers must meet when seeking to obtain a second or subsequent VA home loan.
1. Restoration of Entitlement
When a borrower obtains a VA home loan, their entitlement—the amount the VA guarantees the lender against potential losses—is typically used up. However, if the original loan is paid off and the property sold, the entitlement can be restored, allowing the borrower to reuse it for a subsequent VA home loan. This restoration is not automatic, and it requires the borrower to formally apply for entitlement restoration through the VA. The process typically involves submitting a request, providing necessary documentation, and meeting specific requirements.
2. Sufficient Remaining Entitlement
In order to qualify for a subsequent VA home loan, borrowers must have sufficient remaining entitlement. The available entitlement is the portion of the borrower’s total entitlement that has not been used. The amount of entitlement a borrower can utilize is based on their Certificate of Eligibility (COE), and it can vary depending on factors such as the loan limit in their county and whether they have previously utilized their entitlement. Borrowers need to ensure they have enough remaining entitlement to meet the requirements of their new VA home loan.
3. Satisfying Loan Eligibility Criteria
Obtaining a subsequent VA home loan also requires borrowers to meet certain eligibility criteria. These criteria include creditworthiness, income stability, and the ability to repay the loan. Lenders will typically assess the borrower’s credit score, debt-to-income ratio, employment history, and other financial factors to determine if they meet the loan eligibility requirements. It is essential for borrowers to maintain good credit and financial stability to increase their chances of qualifying for a subsequent VA home loan.
4. Occupancy Requirements
Occupancy requirements must also be satisfied when seeking a subsequent VA home loan. The VA loan program is intended to help borrowers secure primary residences, not investment properties. Therefore, as a general rule, borrowers are required to occupy the property as their primary residence within a specific timeframe. For subsequent VA loans, there may be certain exceptions to this requirement. For example, if a borrower purchases a new primary residence in a different location due to a change in duty station or if they have repaid their prior VA loan in full.
5. Funding Fees
Funding fees are an essential aspect of VA home loans, and they also apply to subsequent VA loans. The funding fee is a one-time charge based on a percentage of the loan amount and can vary depending on factors such as the borrower’s military category, down payment amount, and whether it is the borrower’s first or subsequent use of the VA loan benefit. It is important for borrowers to be aware of the funding fee requirement and factor it into their loan calculations when considering a subsequent VA home loan.
In conclusion, it is possible to get a VA home loan more than once. Borrowers can reuse their VA home loan entitlement if they meet the conditions for entitlement restoration, have sufficient remaining entitlement, satisfy loan eligibility criteria, meet occupancy requirements, and are prepared to pay the applicable funding fees. It is advisable for individuals interested in obtaining a subsequent VA home loan to consult with a knowledgeable VA loan specialist or lender who can guide them through the process and help them understand their options.