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VA Loan Guidelines: Can You Have More Than One VA Loan?

Veteran Affairs loans, or VA loans, provide a number of benefits over other types of loans. With no down payment, no mortgage insurance, and lenient credit requirements, VA loans allow eligible veterans and military members the opportunity to become homeowners.

With such attractive terms, it’s no wonder many people wonder if they can have more than one VA loan. Depending on the scenario, it is possible.

Moving and Renting Out Your Home

Let’s say you purchase a home with your VA loan, only to get PCS orders to a different state. Instead of selling your home, you decide to rent it out. You also want to purchase a home in your new city. Under VA loan guidelines, you may be eligible for a VA loan for your new home.

This is possible if you have leftover entitlement. Entitlement in a VA loan is the amount of money guaranteed by the VA office in the event you default on your loan. All active-duty military members have a primary and secondary entitlement totaling $104,250. (For veterans, this amount is $89,912.) The amount of entitlement used is 25 percent of the home’s value. Depending on the cost of your first home, you may have money left over that can go towards your second loan.

Obviously, this can start to get complicated. You must meet income requirements for an additional loan per VA loan guidelines, so it’s a good idea to consult with a qualified VA lender, like NLC Loans,to see if this is possible.

Using a VA Loan More than Once

Per VA loan guidelines, if you purchased a home using a VA loan, then sold it, you can purchase a new home with a VA loan as many times as you want, providing you still meet the eligibility requirements. The only stipulation is that the previous home must be sold, meaning it is no longer in your name.

If you’ve foreclosed on a VA-backed loan before, you’re still eligible to re-apply for a VA loan once you meet credit requirements.

VA Loans and Vacation Homes

VA loans are designed for primary residences. If you want to purchase a vacation home, cabin or investment property in addition and you don’t intend to occupy it, you will have to look for other ways to finance it, as VA loan guidelines do not allow it.

Get Help with VA Loan Guidelines and Getting Multiple VA Loans

When it comes to multiple properties and VA loans, it can be confusing trying to navigate eligibility and calculate entitlement. For more information, contact a personal mortgage advisor at NLC Loans today toll-free: 1-877-480-8050.