The VA loan program is one of the most powerful benefits offered to veterans, active-duty service members, and eligible surviving spouses. Backed by the U.S. Department of Veterans Affairs, VA loans offer flexible terms, no down payment requirements, and competitive interest rates. But what happens when you’ve already used a VA loan once? Can you use a VA loan more than once? The short answer is yes but there are some important guidelines and requirements you need to understand.
In this article, we’ll break down everything you need to know about using your VA loan benefits more than once, including eligibility, entitlement restoration, and how second-time use might differ from your first VA loan experience.
Yes, You Can Use a VA Loan More Than Once
Many people mistakenly believe that VA loans are a one-time benefit, but that’s simply not true. The VA loan benefit is reusable, provided you meet certain conditions. You may be eligible to use a VA loan multiple times throughout your life, whether to buy, build, or refinance a home.
Common Scenarios Where You Can Use a VA Loan Again:
- You sold your previous VA-financed home and paid off the loan.
- You refinanced your existing VA loan through a VA IRRRL (Interest Rate Reduction Refinance Loan).
- You still own the home, but you’ve restored your entitlement.
- You’ve used only part of your entitlement and have enough remaining to buy another property.
Understanding VA Loan Entitlement
Your ability to reuse a VA loan is tied to your VA loan entitlement. Entitlement is essentially the dollar amount the VA guarantees to the lender if you default on your loan. This is what gives lenders confidence to offer favorable loan terms to VA borrowers.
There are two main types of entitlement:
- Basic Entitlement: $36,000 for most eligible veterans. This typically allows for loans up to $144,000.
- Bonus (or Tier 2) Entitlement: Additional entitlement available for higher-cost homes. This allows you to borrow more than the basic loan limits.
As of 2020, VA loan limits were removed for borrowers with full entitlement. However, loan limits still apply if you have remaining but not full entitlement which often happens when you’re trying to use a VA loan again without fully repaying the previous one.
Full vs. Partial Entitlement
Let’s look at how full and partial entitlements affect your ability to reuse the VA loan benefit:
Full Entitlement
You have full entitlement if:
- You’ve never used a VA loan before.
- You’ve paid off a prior VA loan and sold the home.
- Your previous VA loan was foreclosed but you repaid the VA in full.
With full entitlement, you can buy a home with no loan limits (as long as the lender approves the amount based on your credit, income, and debt-to-income ratio).
Partial Entitlement
You have partial entitlement if:
- You still own a home purchased with a VA loan.
- You defaulted on a previous VA loan and haven’t repaid the VA.
- You’ve used some of your entitlement and haven’t restored it.
With partial entitlement, VA loan limits apply, which could affect how much you can borrow without a down payment. You might still qualify for another VA loan, but if the home price exceeds your remaining entitlement, a down payment may be required.
Restoring Your VA Loan Entitlement
To reuse your VA loan, you may need to restore your entitlement. You can request restoration through the VA Form 26-1880 (Request for a Certificate of Eligibility).
Here are the main ways to restore your entitlement:
1. Sell the Property and Pay Off the Loan
This is the most straightforward method. Once the VA loan is paid in full and the property is sold, your entitlement is restored and available for reuse.
2. One-Time Restoration Without Selling the Home
If you’ve paid off the VA loan but kept the home, you can apply for a one-time restoration of your entitlement. This allows you to use the VA loan benefit again without selling your current home—but only once.
3. Assumption of the Loan
If another qualified borrower assumes your VA loan and the lender releases you from liability, your entitlement may be restored.
Can You Have Two VA Loans at Once?
Yes, it is possible to have two VA loans at the same time. This usually happens when a service member receives a Permanent Change of Station (PCS) order and must move to a new location while still owning a home with a VA loan. In this case, you can use your remaining entitlement to purchase another home using a VA loan.
However, your remaining entitlement must be enough to meet VA and lender requirements for the second property. In such cases, loan limits will apply, and a down payment may be necessary depending on the loan amount and the remaining entitlement.
How Using a VA Loan Again Affects Your Costs
One thing to keep in mind is the VA funding fee. This is a one-time fee paid to the VA to help keep the loan program running. For subsequent VA loans, the funding fee is typically higher than it was for first-time use.
VA Funding Fee Rates for 2025 (for purchases):
- First-time use: 2.15% (0% down)
- Subsequent use: 3.3% (0% down)
- Exemptions: Veterans receiving VA compensation for service-connected disabilities are usually exempt from the funding fee.
You can pay the fee upfront or roll it into your loan amount.
Final Thoughts
So, can you use a VA loan more than once? Absolutely. Whether you’re upsizing, relocating, or buying another home later in life, your VA loan benefits don’t disappear after one use. With proper planning and understanding of entitlement rules, many veterans and service members take advantage of VA loans multiple times.
If you’re considering using a VA loan again, talk to a VA-approved builder who can review your entitlement and walk you through the process. With the right support, you can make the most of your well-earned VA loan benefits again and again.
If you want to learn more about VA loan, reach out to Jennifer Yoingco, REALTOR®, and her team, The Houston Suburb Group. They’ll help you get ready to EXPERIENCE LIVING IN HOUSTON TEXAS!
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