How Many Times Can I Use My VA Home Loan Benefits?

As an eligible active-duty or former member of the military, National Guard or Reserves, or the surviving spouse of a veteran, you can receive many benefits from the Veterans Administration. One of the most important of these is your ability to utilize VA home loan benefits to buy a home. But did you know you can use that benefit (as long as you remain eligible) as many times as you wish?

They’re A Lifetime Benefit

Once you repay a VA loan in full, you can apply for the benefit again. And you can keep doing this as often as you wish as long as you remain eligible and can get lender loan approval.

For example, let’s say you purchased your first home in your 30s. Then, by your mid-40s, you decided to sell that home and upgrade to a larger home, or perhaps one in a different area. Once your starter home sells and the original VA loan is paid off, you’re free to restore your entitlement and apply for VA home loan benefits again to fund a new home.

About Your Entitlement

If approved for a VA loan, you are awarded entitlement by the VA. This is the dollar amount they promise to repay a lender if you default on your home. Typically, this is either $36,000 or 25% of your loan amount. When you purchase a home with a VA mortgage a portion of that entitlement is used. Your entitlement is restored when the loan is paid off or your home sells.

You are then free to purchase another home with a VA mortgage.

You are also able to hold two VA mortgages at the same time if you have remaining entitlement available. There are two tiers to entitlement and if the basic amount is used, you have a secondary tier. If you are thinking about taking out a 2^nd VA mortgage speak to your mortgage professional to ensure you have enough entitlement available. If you don’t, it may just require putting some money down for the home.

VA Home Loan Advantages

As you may already know, private lenders issue VA home loans, but the Department of Veterans Affairs guarantees them. This guarantee reduces the lenders’ risk, and they can therefore offer you more attractive terms than those you get with a conventional loan. Some of the benefits include:

• No down payment required
• Lower interest rates
• Reduced closing costs
• No private mortgage insurance required

Whether you’ve already been through the VA home loan process (and are considering using your benefit again) or it’s your first time out of the gate, it’s not a bad idea to review some of the finer points. Here are some of our other articles that have some valuable information:

• 5 Ways To Get the Best VA Loan Rate
• What Can I Buy With a VA Loan?
• VA Statement of Service: Why Do I Need One?
• Can Military Spouses Get VA Loans?

VA Home Loans Made Easy

Buying a new home is always exciting, but it can also be stressful. To make the whole process as worry-free as possible, contact National Home Loans today. We’ll be there for you every step of the way.