can you use va loan for second home

Many veterans and active-duty military personnel wonder if they can use a VA loan for a second home purchase. The answer to this question depends on certain factors and eligibility criteria. In this article, we will explore whether a VA loan can be used for a second home and provide you with a comprehensive understanding of the process.

Eligibility Requirements for Using a VA Loan for a Second Home

While VA loans are primarily intended for purchasing a primary residence, there are circumstances where they can be used for a second home as well. However, it’s essential to understand the eligibility requirements before considering this option. Here are the key factors:

  • You must have already used your VA loan benefits once before.
  • You should have sufficient entitlement available to cover the second home purchase.
  • The second home must be used for your own occupancy and cannot be rented out.

Determining Sufficient Entitlement for a Second Home

VA loan entitlement is the amount the VA will guarantee on your home loan. To determine if you have sufficient entitlement for a second home, you need to follow these steps:

  1. Look at your Certificate of Eligibility (COE) or request it from the VA if you don’t have one.
  2. Check the “Entitlement” section of your COE, which shows the total entitlement amount available to you.
  3. Consider the amount of entitlement you used on your current/previous VA loan.
  4. Calculate the remaining entitlement by subtracting the used amount from the total entitlement.
  5. Ensure that the remaining entitlement is enough to cover the second home purchase. Keep in mind that the VA guarantees up to 25% of the loan amount, but the specific entitlement will vary based on loan limits in your county.

By going through these steps, you can determine whether you have enough entitlement to use a VA loan for a second home purchase.

The Benefits of Using a VA Loan for a Second Home

Using a VA loan for a second home can offer several advantages:

  • No down payment: VA loans typically do not require a down payment, making it easier to finance a second home purchase.
  • No private mortgage insurance (PMI): Unlike conventional loans, VA loans do not require PMI, saving you money on monthly payments.
  • Favorable interest rates: VA loans often come with competitive interest rates, which can help save money over the life of the loan.
  • Flexible credit requirements: VA loans have more flexible credit score requirements compared to conventional loans, which can benefit borrowers with less-than-perfect credit.

Considering these benefits, using a VA loan for a second home can be a great option for eligible veterans and military personnel.

Alternatives to Using a VA Loan for a Second Home

If you don’t meet the eligibility requirements for using a VA loan for a second home or want to explore other financing options, several alternatives are worth considering:

  • Conventional Loan: A conventional loan is a popular choice for financing a second home purchase. It typically requires a higher down payment and potentially higher interest rates.
  • Home Equity Loan: If you already own a primary residence and have built equity, you may consider a home equity loan or line of credit to finance your second home purchase.
  • Cash Purchase: If you have the financial means, paying cash for your second home can eliminate the need for a loan altogether.


In conclusion, using a VA loan for a second home is possible under certain circumstances. It’s crucial to meet the eligibility requirements and have sufficient entitlement available. Consider the benefits of VA loans and explore alternatives if you don’t qualify for a VA loan. By understanding your options, you can make an informed decision about financing your second home purchase.