VA loans can open the door to affordable homeownership for active-duty and retired US military members. This mortgage makes the path to homeownership easier, and better yet, it is also not a one-time benefit. So, as long as you meet the eligibility requirements, you can use this loan twice, three times, seven times, or as many times as you like.
Read on to learn how to stay eligible to use a VA loan multiple times.
Can You Use Your VA Loan Multiple Times?
There is no limit on how many times you can use a VA loan. You just can’t use multiple loans at the same time. The only restriction you need to be aware of is your remaining entitlement. This is a specific amount guaranteed by the Department of Veterans Affairs and is what they will pay to the lender should you default on your loan. It can be up to 25% of the total loan amount or $36,000, and if you don’t have your full entitlement, you may be responsible for a down payment to cover the difference.
So, as long as you have remaining entitlement, you can use the VA loan again. But remember, if you only have partial entitlement when you use the VA loan again, you may be required to make a down payment.
The Different Types of VA Entitlement
There are two types of VA loan entitlement: basic and bonus.
Basic: Every eligible borrower is entitled to the basic entitlement, around $36,000. The VA allows loan participants to borrow up to four times that amount, which equals $144,000.
Bonus: This loan kicks in if the loan amount exceeds $144,000 and allows qualified borrowers to simultaneously have multiple VA loans.
The level of entitlement is also taken into consideration. The full entitlement is the maximum amount that the VA will guarantee to the lender, which is about 25% of the total loan. You’ll have full entitlement if you’ve never used your VA loan. Partial entitlement is when you have already used your VA loan, but the full entitlement has not been restored yet.
How Do You Restore Your Partial Entitlement Status to Full?
Restore your partial entitlement to full to avoid down payments on your home purchase by:
- Repaying your first VA loan and selling the property
- Repaying the VA loan in full after foreclosure
- Using the VA’s VA’s one-time restoration of entitlement
Whether you’re using the loan for the second or fourth time, as long as you’ve restored the entitlement to full, you don’t have to worry about a down payment.
Apply For Your VA Loan With Mortgage Experts in Cape Coral, Florida
Are you ready to purchase your dream house with a VA loan? Contact our friendly team at Island Coast Mortgage, and we will get the process started. Call us at 239-214-7011 to schedule your free consultation today.
