How Many Times Can You Use A VA Loan?

Reyna Gobel, M.B.A. and M.J., is a financial and physical fitness journalist, author, and course instructor who’s published on reuters.com, weightwatchers.com, and theatlantic.com. Her CliffsNotes books on repaying student loans and paying for college were picked as book of the month by Michelle Singletary in The Washington Post three times. She co-created the 30 Day Immune System Challenge at 30ichallenge.com.

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Chris JenningsDeputy Editor, Loans & Mortgages

Chris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a number of outlets, including Yahoo Finance, MSN, Fox Business, and GOBankingRates.

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Chris Jennings

Chris JenningsDeputy Editor, Loans & Mortgages

Deputy Editor, Loans & Mortgages

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Updated: May 27, 2022, 5:00am

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For veterans, service members and eligible family members, taking out more than one Veterans Affairs (VA) loan can be a good option for financing a home after selling another one or if you’re assigned a new military base and have to move.

No matter the reason, here’s what to know when considering borrowing more than one VA loan.

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What Are VA Loans and Who’s Eligible?

VA loans are home loans for eligible veterans, service members and surviving spouses to buy a home with no down payment, no private mortgage insurance (PMI) and low credit score requirements. Being a member of the armed services by itself isn’t enough—other requirements include having active duty service or honorable discharge status.

How Many Times Can I Take Out a VA Loan?

You can take out a VA loan a seemingly limitless amount of times. However, the VA funding fee—fee the VA charges to guarantee the loan—can be higher after the first home loan, depending on your down payment amount.

For instance, if you put down less than 5% of your loan amount, you’d pay 2.3% on the first use versus 3.6% for the second time and beyond. However, if you put down 5% or more of the loan amount, you’ll pay the same VA funding fee no matter whether it’s your first or seventh loan.

You may be exempt from paying the VA funding fee, though, if one of the following applies:

You’re eligible to (but receiving retirement or active-duty pay instead) or are receiving compensation for a service-connected disability.
You’re a surviving spouse of a veteran who died while serving, or from a service-connected disability or was totally disabled. You must receive Dependency and Indemnity Compensation (DIC) to qualify.
You’re a service member with an in-process or memorandum rating of eligibility for compensation because of a pre-discharge claim before the date the loan closes.

Also, you can apply for a refund of the VA funding fee if you’re awarded VA compensation for a service-connected disability after the closing date if awarded retroactively.

How Many VA Loans Can I Have at Once?

Generally, you can’t take out more than two VA home loans at once, as you’re supposed to reside or have resided in a home to take out a VA mortgage. This can happen when selling one home to buy another, or if keeping one home and then buying a home when assigned to a different military base. You can’t borrow VA loans for investment properties you don’t live in, however.

When borrowing money to buy the second home, your VA eligibility is reduced by the amount owed on the first mortgage. For example, in Phoenix the limit is $647,200. So, if your current mortgage is for $400,000, you could potentially borrow up to $247,200 (the difference) on your second home.

When it comes to a second VA loan, there’s still a maximum amount you can borrow in total between the two homes. If you need more than the VA home loan limit, you may want to consider refinancing the mortgage on the first home to a conventional loan and then using the VA loan for the second loan. You can get a seemingly limitless number of VA loans if you pay off one VA loan and sell the home before taking out the next mortgage.

How to Take Out a Second VA Loan

You can use a VA loan to purchase a new home or refinance your old mortgage. If you paid off a previous loan on a property you still own or have sold, you’ll need to complete and submit a Request for Certificate of Eligibility (COE). If you still own the home, you can only have your full eligibility restored once.

You’ll need to include proof the VA loan is paid off. You should also include proof the home was sold if it was to expedite the process. Once your eligibility is restored, you’ll need to bring the COE to the VA loan lenders you’re considering.

Can Someone Takeover My Original VA Loan?

Someone can assume responsibility of your VA home loan only if the other person is also a veteran, service member or surviving spouse with VA eligibility. Assuming responsibility is normally done when you sell your home, but with the condition that someone is continuing to pay off your mortgage.

Keep in mind that if the person who assumes your loan defaults, you won’t have to repay the loan but you lose eligibility for a new VA loan unless it’s paid off.

When a VA Loan Is a Good Idea—and When It Isn’t

If you’re eligible, a VA home loan is a good idea for the most part. Among other benefits, VA loans don’t require a down payment and can have lower interest rates.

But there are times when it might not be the right choice if:

You have an excellent credit score and can find a loan with a lower interest rate that isn’t a VA loan, like a conventional home loan.
You don’t have enough remaining VA loan eligibility for the new home you’re buying. You may want to refinance your first VA loan into a conventional loan to restore your eligibility for a new VA home loan.

If you can qualify for a VA loan with a good interest rate, it can be the right choice. But you need to carefully weigh your options before deciding on the best loan for your situation.