Using Your VA Loan More Than Once

One of the most common misconceptions about VA loans is that you can only use the benefit once. That is not the case. Many veterans use their VA loan benefit multiple times over their lifetime.

How VA Loan Entitlement Works

When you use a VA loan, you are using a portion of your entitlement — the amount the VA will guarantee on your behalf. As long as you have remaining entitlement, you can use it for another VA loan.

Entitlement comes in two tiers. Basic entitlement is $36,000 — the maximum the VA will pay your lender if you default on a loan of $144,000 or less. For loans above $144,000, the VA guarantees up to 25% of the loan amount through bonus (second-tier) entitlement. If you have full entitlement (your COE shows $36,000 basic entitlement available), there is no loan limit — the lender determines how much you can borrow based on your income and credit.

Restoring Your Entitlement

If you sell the home that was purchased with a VA loan and pay off that loan in full, you can apply to have your full entitlement restored. This means you could use your VA loan benefit again with the same favorable terms, including no down payment.

• Entitlement is restored when you sell the property and repay the VA loan in full
• You can request a one-time restoration of entitlement while keeping the home if you have paid off the loan but not sold
• If you have used part of your entitlement, you may still qualify for a second VA loan using remaining or second-tier entitlement

Second-Tier Entitlement

Even if you have not restored your full entitlement, you may be able to use remaining entitlement to purchase another home. This is known as second-tier or bonus entitlement. Your remaining bonus entitlement is calculated using the county loan limit where you are buying (the FHFA conforming loan limit) minus the entitlement you have already used. Most lenders require your entitlement plus any down payment to cover at least 25% of the loan amount.