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Once you’ve learned a few of the basics about Veterans Affairs (VA) home loans, it’s a good time to take a look at your finances and housing situation and decide how a VA home loan could work for you. You may already know that VA home loans are backed by the United States Department of Veterans Affairs, better known as the “VA,” and that many VA home loans aid prospective homebuyers by eliminating the need for a down payment or private mortgage insurance (in cases where borrowers qualify).

But what if you already have a VA home loan? Read on to learn more about situations where a borrower may seek out a second VA loan to purchase a new primary residence.


I Have Already Purchased a Home with a VA Home Loan. Can I Still Take Out a VA Home Loan?

Yes, over the course of your lifetime it is possible to get multiple VA home loans. There is a case where consumers may utilize their VA loan entitlement to take out more than one VA home loan:

Greg used a VA home loan to purchase the primary residence in which he currently lives. He has since paid off that VA home loan in full and owns his current primary residence free and clear. Whether or not Greg chooses to sell his current home, he may use a VA home loan to purchase another home, so long as he intends to occupy the new home as his primary residence. He is free to use the old home as an investment property or second home – but federal regulations dictate that you may not use the income from that rental in order to qualify for a new VA home loan.


Understanding VA Loan Eligibility and Multiple VA Home Loans

Because the VA home loan is intended to make homeownership accessible to military service members and veterans, VA loans are only for primary residences. However, this leads some prospective homebuyers to think that they are limited to just one use of a VA home loan to purchase a home.

Good news! This is a myth – you are not limited to taking out just one VA home loan in your lifetime. You are free to seek a refinance of your current home with a VA home loan, or obtain a VA home loan to finance your purchase of a new home.*

If you are interested in pursuing a second VA loan after having used one before, it’s a good idea to check your remaining VA loan entitlement. Your VA entitlement represents the amount the federal government guarantees a lender who extends you a home loan, in the event that you default on the mortgage. To check your remaining entitlement, you will want to pull a copy of your VA loan certificate of eligibility (COE). A loan officer who routinely helps VA home loan applicants may be able to help you with this step.

When they move out of a primary residence that they purchased with a VA home loan that has since been paid in full, some owners choose to keep their old home and rent it out, rather than selling it. In this situation, the owner can potentially use a VA home loan to purchase a new primary residence, while keeping the other property as an investment or second home.


More About VA Home Loans

Are you interested in learning how a VA home loan can help you purchase a home, possibly with no down payment? Your best resource may be your trusted loan officer; but until then, you may peruse the consumer Learning Center presented by The Federal Savings Bank. There you can learn all about how consumers are taking advantage of home loan offerings to achieve their homeownership goals.

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.