Home Buying in Dallas>Question Details

Ibrahim, Home Buyer in Dallas, TX

Is it true you can use VA Loan more than once?

Asked by Ibrahim, Dallas, TX Sun Dec 23, 2012

I'm being told I can use my VA loan more than once.

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There seems to be a steady expectation that everyone can find a house perfect for them, so long as they are prepared, patient and practical. However, many also soon learn that this perfection is fleeting. The house that comfortably fits two newlyweds becomes cramped beyond belief with a family of five, and so begins the search for the new perfect house.

Redfin CEO Glenn Kelmen calls this “moving up,” and he says now’s the time for those considering it. In fact, Kelmen suggests the most common mistake homeowners make in the process is waiting until their current property value increases before moving up.

Whether it’s a need for more bedrooms, storage space or even a backyard for the kids to play in, 1 in 3 growing families are unable to buy because they lack a sufficient down payment, according to Integra Realty Resources.


Fortunately, a fantastic benefit of the VA loan benefit program is the ability to purchase with no money down, meaning service members and veterans could bypass this traditional barrier to homeownership. There’s also no maximum on how many times a veteran can use the home loan program, so many veterans may have the option to obtain a second VA loan.

> Reusing/Reinstating Eligibility:
If a vet has repaid a VA loan and sold the home he purchased with it, he may reuse his benefit to buy another home. There’s no limit to the number of times the benefit can be used this way.

However, a vet is allowed only one chance to borrow for the purchase of a home while he still owns one purchased with a VA loan. When the borrower sells the home to a buyer who assumes his loan, his eligibility can only be restored if the buyer is also a qualified veteran willing to swap his own eligibility for the seller’s.

Otherwise, the buyer must repay the loan in full before the seller becomes eligible for another VA loan. In cases where a borrower, whether the seller who originally obtained the loan or the buyer who assumed it, defaults, the portion of the seller's eligibility that's still in use can be reinstated only after the loan is repaid in full.

A vet who has used only a portion of his full benefit may use the remaining benefit for another loan, although this arrangement might require a down payment.
Reference Link:http://vastreamlinemortgage.net/va-mortgage-loan-advantages-…
2 votes Thank Flag Link Tue May 5, 2015
Is it possible to use my VA eligibility more than once?

Check with your lender about interest-rate reduction refinancing on your existing VA loan. This is a great advantage and there's no need to re-establish VA loan eligibility. Instead, ask your lender to use the VA's "email confirmation procedure". You may also re-use your VA loan eligibility for another VA loan.
The requirement here includes having completed payments on the previous note, and you must no longer own the property. When applying for re-eligibility, include copies of the paperwork that proves your old VA loan has been paid off-a "paid-in-full" letter from your bank, or a copy of the "HUD-1 settlement statement."

Getting a Second VA Loan
One of the most common questions from borrowers who have purchased a home with a VA loan is if they are able to use their benefit again. Fortunately, there is no limit on the number of times a veteran can use the loan program. This is a life-long benefit for those who have served our country. Securing another VA loan requires looking into a borrower’s VA Loan entitlement. But what exactly does that mean?

What is entitlement?
Every veteran and active service member who meets the VA's eligibility requirements has something called entitlement. Entitlement can be a bit confusing, even for those working in the mortgage industry, but the most common definition is that it’s a specific amount the VA pledges to repay to a lender if the borrower defaults on the loan. This is part of the VA Loan guaranty.

> http://valoanguidelines.org/
1 vote Thank Flag Link Fri May 15, 2015
I would suggest that you talk to your lender.

Good luck!
0 votes Thank Flag Link Tue May 26, 2015
Hi Ibrahim,

Not only can you use your VA entitlement more than once, you can also have more than one VA loan out at the same time under the VA 2nd tier or bonus entitlement!

Take a look at the recommendations from some of my past clients on my Trulia profile by clicking the link below my phone number.

Please feel free to contact me for more information or help.

John Burke
Senior Mortgage Banker
Lending in ALL 50 states
Great Plains National Bank
(877)228-9069
NMLS# 787231
http://www.trulia.com/profile/john-burke-mortgage-broker-or-…
0 votes Thank Flag Link Wed May 6, 2015
Ibrahim,

Try http://www.dawnpemberton.com for one of the top VA lenders in town. She has children currently serving. Fairway Independent Mortgage Corp gives priority to VA purchase loans. Dawn has years of experience. You will also get great rates and close on time, every time, guaranteed.

Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
214-808-3100
Brent@RiceGroupInc.com
0 votes Thank Flag Link Sun Dec 23, 2012
Yes.... there are restrictions, but you can typically use more than once.

It's not unusual around here for people to buy and sell .

There are some tricks though with VA and how much money you can have out at one time.
You may have to sell first, and reapply for the benefit.
0 votes Thank Flag Link Sun Dec 23, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Thanks for the info, I already have my eligibility letter just need to get with a lender.
0 votes Thank Flag Link Sun Dec 23, 2012
Wow, this is an easy question and I am surprised at the crazy answers below.

Your VA benefits can be used over and over but the loan must have been paid off to do so again. Let's say you buy a house today and in 5 years you allow it to be assumed by a new buyer. This has not been popular in the last 5-10 years because interest rates were high and coming down so assumptions were few. In the years to come as rate go back up these ultra low rates will be SUPER attractive and buyers will want to assume the loan when they buy the house. Until that loan is sold and paid off you can not get your VA benefit back to use again. It's that simple.

Having lived near Wash DC for years while selling real estate it is well known that if you mail off a request to the VA it can take months to get it back. If you go to their office and play musical chairs and go office to office you can get it down in 1 day. You choice.
0 votes Thank Flag Link Sun Dec 23, 2012
Should be okay. However, you should contact a lender for the truth.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Sun Dec 23, 2012
You missed the part about a "REASON";
I doubt very seriously that "increasing your assets" would be an acceptable reason:
They are looking for Health, Family and Job reasons.
0 votes Thank Flag Link Sun Dec 23, 2012
Thank you, I already have my VA loan letter. If I buy my first house using the VA loan, can down the road, 4-7 years later can I apply for another mortgage through VA? I'm being told you can use it multiple times.

For years I assumed you can only use it once and that's it.
0 votes Thank Flag Link Sun Dec 23, 2012
You have to have a good reason why you are applying for "re-instatement of benefit", and you have to apply.
It might take some time; it took me over two years to get disability benefits:
They are busy.

Good luck and may God bless

Oh, and thanks for serving!
0 votes Thank Flag Link Sun Dec 23, 2012
Yes, according to lenders I know, VA benefits may be used more than once.
0 votes Thank Flag Link Sun Dec 23, 2012
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