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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John Burke’s answer
HI Ibrahim,

Thank you for your service.

Yes you can use your VA entitlement as many times as you want & contrary to what Tim Moore said, you can actually have more than one VA loan at a time as long as you have enough entitlement available.

Under the 2nd tier or bonus entitlement you can have 2 VA loans out at one time as long as you have enough entitlement left.

Here's an example: You basic entitlement is $36,000 for a home of $144,000 or less. If you go higher, your entitlement is 25% of whatever VA has set the county loan limit it at. In most areas that limit is $417,000 so your entitlement would be $104,250 ($417,000 X 25%). VA requires that you have enough entitlement and or down payment/equity to cover 25% of the loan amount.

So let's say your first home is $144,000, you would have used $36,000 of your entitlement. Now fast forward 4-7 years. Let's say you're looking at a new home for $250,000. You would need to have $62,500 ($250,000 X 25%) of entitlement for a VA mortgage which you would. Here's how the math would look.

Entitlement of $104,250 minus what was used, $36,000 = $68,250. This would be your remaining available entitlement without paying back any shortage to VA.

Please feel free to contact me for more information or help with your VA mortgage. You can also find more info on my VA mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust Co.
1 vote Thank Flag Link Mon Dec 24, 2012

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
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
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.

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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