VA Loan Misconceptions, Article 2: Can VA Loan Eligibility Only Be Used Once?

It’s very common for me to talk with veterans and servicemembers who are under the impression that they can only use a VA loan once.?They say things like:

• “Well, I used my VA loan for my first house years ago, so I think I need to use a different loan type this time.”
• Or, “This home will be my ‘starter home’; I’d rather save my VA loan for my ‘forever home’.”

Many simply aren’t aware that VA loans can be used more than once.

It’s most common to get a 2nd or 3rd VA loan if the veteran sells the first home.?But it’s also possible to have more than one VA loan at the same time, as long as the new loan will be for a new primary residence.?There are restrictions and limitations, but since VA loans are usually the best value for home buyers, it’s important to explore the options thoroughly.

Example:

Let’s say a servicemember who is still actively serving buys their first home for 250k near the base where they serve. Then, 18 months later, when their time of service is ended, they return to their home town and re-enter the civilian workforce.?With the new Conventional loan limits increasing to about 726k for most areas of the country in 2023, as long as their income supports it, they could potentially qualify for a new primary home purchase near 475k.?That is without selling their first home, which they might decide to keep as a rental.?

There are several qualifying requirements, especially DTI (debt-to-income ratios).?But I’ve helped clients close both loans in situations like this.

The main practical takeaway is: don’t assume that you can only use a VA loan one time.?Talk with a knowledgeable and trustworthy VA Loan Advisor (like me ??); I can help you get the maximum use from your VA eligibility and benefits.