From Time Magazine:

Unlocking the potential of a second home with a VA loan can provide veterans and service members with strategic opportunities. With lifelong entitlement and no limit to the number of times you can use a VA loan, the process involves understanding entitlement, maximizing benefits, and ensuring a primary residence. VA loan entitlement determines the maximum loan amount the VA will guarantee. For a second home, you can use whatever entitlement you have left to take out another VA loan.

Eligible veterans, service members, and survivors with full entitlement do not have a limit on loans over $144,000. If you have remaining entitlement and are looking to take out a second VA loan, the limit is based on the county loan limit where you live. While it’s possible to have two VA loans simultaneously under certain circumstances, some specific requirements must be met. The second property you purchase must be your primary residence, you must provide proof you can afford the additional loan, and you must be approved for multiple loans by a VA lender.

In order to qualify for a second VA home loan, it’s crucial that the second property you purchase is a primary residence, you must have remaining entitlement, provide proof you can afford the additional loan, and be approved for multiple loans by a VA lender. As with your first VA loan, you will need to pay a funding fee for the second home you purchase, typically around 3.3%. To get a second VA loan, you’ll need to check your eligibility and entitlement, request an updated certificate of eligibility, search for lenders that offer second VA home loans, submit a mortgage application, get a home appraisal and inspection, go through the mortgage underwriting and approval process and accept your loan terms and close on the loan.

The VA’s cash-out refinance option is available to qualifying homeowners and allows you to take cash out of your home equity, which you can use to purchase a second primary residence. Home equity loans, on the other hand, are paid out in a one-time lump sum and have fixed rates, placing a second lien on your property while the rate or term of your first mortgage stays the same. You can get a second VA loan before selling your home as long as you satisfy primary residency requirements and demonstrate that you can pay both loans. As long as you have remaining entitlement, meet eligibility criteria and satisfy primary residency requirements, there’s no limit on how many times you can tap into the VA’s home loan benefit.



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