Introduction

Many veterans who previously used a house loan assume that the VA loan is the only option. The idea that you can only use it once is completely false. In a positive turn of events, this is not the case. Given the potential upsides, this may easily feel like a once-in-a-lifetime chance. After all, there is no need to put money down for a down payment, and there is no need to worry about paying for PMI. The ability to finance the whole worth of a property makes it considerably simpler to get the house of your dreams. The good news is that you can make many claims on your VA loan benefit.

What Are VA Loans?

In this case, the Department of Veterans Affairs is a guarantor for loans from commercial lenders. Because of the VA guarantee, VA loans typically have more favourable terms than regular loans, such as lower fees and other charges. Loan providers can feel safer with this assurance in place. The absence of a down payment is a defining feature of VA loans. Navy Federal Credit Union's vice president of field mortgage originations, Kevin Parker, says that the VA loan programme is one of the finest options for qualified homebuyers. In 2020, the program's rules will change significantly, easing the process of homeownership for eligible people.

How Many Times Can You Use a VA Loan?

The financing provided by the VA is not a one-and-done arrangement. Summer Kim-Davis, CEO of Dallas-based IKON Mortgage, said a VA loan could be used multiple times. As long as you meet the requirements, you can use VA loans for as many primary residences as you like throughout your lifetime. However, one should remember some guidelines. Some situations allow you to get a VA loan without selling your principal residence. Veterans who have paid off their VA-backed mortgage and plan to keep the property they purchased with the loan are eligible to have their full benefit reinstated.

How To Get a Second VA Loan

You may be eligible for another VA loan even if you already have one. If you don't use all of your entitlement on the first loan, you may be eligible for a second loan with "remaining entitlement." There are many reasons why a second VA loan can be necessary. This is a regular scenario when a military member is transferred to a new base. While they plan to buy a new home in their new duty station, they have no plans to sell their current home (financed by a VA loan) for whatever reason.

Individual counties cap the maximum amount you can borrow using your remaining entitlement. These restrictions align with the Federal Housing Finance Agency (FHFA) and will change depending on local median household income. The VA will cover the difference if the loan amount is less than the applicable county limit or the entitlement has already been spent. This implies that if you want to buy an expensive home but live in a low-cost location, you may have to come up with a larger down payment than usual to satisfy your lender's requirement of a minimum 25% down payment.

Who Can Get a VA Loan?

You must meet the VA's strict requirements to qualify for a VA loan. Whatever benefits you receive depends on when you served, in which capacity (active, reserves, or National Guard), and for how long. Provided you entered the military after August 2, 1990, and served in an active capacity, you may be eligible for a VA loan if you meet one of the following conditions:

• A minimum of 24 months of continuous service
• Active duty for at least 90 days without a break
• If your discharge was due to a service-connected disability, it was likely less than ninety days.
• A minimum of 90 days if your release resulted from an official hardship, a reduction in force, or another official government convenience.
• If you want to qualify for a VA loan, you can't have a dishonourable, other-than-honourable, or bad-conduct discharge.

Conclusion

The number of times you can use your VA loan is unlimited. Veterans Affairs loans can be used once, twice, three times, or even seven times. Any veteran with unused benefits can apply for another VA loan anytime. A small number of Veterans have worked with Veterans United on their ninth VA loan. There are situations in which you can have multiple VA loans at once. VA Loans Can Be Used However You Like, But Be Aware Of Your Eligibility Requirements Any veteran who meets the requirements and is approved by a lender can obtain as many VA loans as they need throughout their lifetime.