Get A Second VA Loan - We Approve Multiple VA Loans (2024)

FAQs

Get A Second VA Loan - We Approve Multiple VA Loans? ›

Getting a second VA loan on a different home is possible. It often happens when an active service member receives Permanent Change of Station orders. However, a VA-approved lender must approve you having multiple loans. Essentially, you'll need to show that you have the means to repay both loans at once.

You can use your remaining entitlement—either on its own or together with a down payment—to take out another VA home loan. You may have remaining entitlement if any of these are true: You have an active VA loan you're still paying back, or. You paid a previous VA loan in full and still own the home, or.

VA lenders have a two-year minimum waiting period before they will allow you to borrow again. Understand that you've lost some of your entitlement through foreclosure, which you can only restore if you pay the government in full.

How Many VA Loans Can You Have? VA loans can only be used to purchase primary residences, and they come with occupancy requirements to ensure that this is how the loan will be used. That being said, it is possible to have two VA loans at one time for two different primary residences.

A second-tier or second-layer VA loan indicates that a veteran likely has two loans. Second-tier entitlement may occur after a veteran previously purchased a home. In certain situations, a portion of the entitlement may be linked to a mortgage. It's possible to restore entitlement by fully repaying a loan.

This is a benefit Veterans have earned for life. There's no limit to the number of times you can restore your VA loan entitlement, provided you meet guidelines and requirements.

The VA doesn't set a minimum credit score for VA loans at the program level. Instead, the VA relies on lenders to ensure borrowers are a satisfactory credit risk. VA lenders typically require a FICO score of at least 620. High loan amounts, such as those exceeding $1 million, may require a higher credit score.

The standard VA loan limit in 2024 is $766,550 for most U.S. counties, increasing from $726,200 in 2023. VA loan limits also increased for high-cost counties, topping out at $1,149,825 for a single-family home. VA loan limits do not represent a cap or max loan amount.

Second-tier lenders are a subset of 'non-bank' lenders who don't require a license from the Reserve Bank to operate. The public can't deposit money into an account or a term deposit with them, so they must raise the funding that allows them to lend money via other means.

Can you buy two houses with a VA loan? ›

Yes, you technically can use a VA loan for a second home.

VA mortgages even come with specific occupancy requirements to help ensure that the homes they guarantee are inhabited for most of the year.

Who pays closing costs on a VA loan? The buyer will be responsible for paying the closing costs charged by whichever mortgage lender they choose. The seller may decide whether or not to pay some of the buyer's closing costs.

Since the VA guarantees up to 25% of your loan amount, you can determine your remaining entitlement by multiplying the loan amount by 25% (or dividing it by four).

Getting a second VA loan on a different home is possible. It often happens when an active service member receives Permanent Change of Station orders. However, a VA-approved lender must approve you having multiple loans. Essentially, you'll need to show that you have the means to repay both loans at once.

Funding fees for a subsequent VA loan are 3.3% with a down payment less than 5%, 1.5% with a down payment of 5% to 9.9% and 1.25% with a down payment of 10% or more.

A Type 1 cash-out refinance occurs when the loan amount of the new loan is less than or equal to 100 percent of the payoff amount of the loan being refinanced. A Type 2 cash-out refinance occurs when the loan amount of the new loan is greater than 100 percent of the payoff amount of the loan being refinanced.

About VA Loan Limits

The standard VA loan limit in 2024 is $766,550 for most U.S. counties, increasing from $726,200 in 2023. VA loan limits also increased for high-cost counties, topping out at $1,149,825 for a single-family home. VA loan limits do not represent a cap or max loan amount.

VA lenders can issue a loan then decide whether or not to keep it for the interest payments or sell it to another VA lender. Once a loan is sold, the original VA lender gets paid by the buying company and has money to issue more VA loans.

FHA and VA loans can't be combined to pay for a single home, but you can use both loans on separate houses. To do this, a homeowner will pay for a home and then turn it into a rental property when they're ready to finance another house.

VA loan benefits don't expire, so you can use them at any point after getting out of the military. Additionally, you can use this benefit as many times as you want as long as you have remaining entitlement.