Yes, VA loan benefits can be used again and again, provided that you meet the qualifications for reuse. Here is a closer look at 3 common scenarios may help some veterans get another VA loan.
Does one of these apply to you regarding your previous VA loan?
- Paid in full and house sold
- Assumed by another veteran
- Balance on mortgage and still own the home
VA loan paid? Restore entitlement using VA Form 26-1880
If you sell the house financed with a VA loan and pay the mortgage off you can get another VA loan. When this is done, you should complete VA Form 26-1880 to restore entitlement, the same form used to obtain Certificate of Eligibility (COE), you can also apply online. Surviving spouses use VA Form 26-1817. When entitlement is restored you can apply for another VA loan.
VA loan assumed? Entitlement may or may not be restored
if you sell your house before it is paid off the buyer can assume the VA loan. The buyer may use your entitlement to assume the mortgage. If this happens you can’t get another VA loan until your first one is paid off.
If you sell your house to a veteran they can use their entitlement to get a VA loan, if this is the case you are free to use your VA loan again.
VA loan not paid? Multiple VA loans are possible
It doesn’t happen often, but it is possible for you to have two VA loans at once.
Today, a VA-eligible borrower with full entitlement has enough VA backing for a loan of $424,100 in most U.S. counties. With the average VA loan around $210,000, most veterans have some entitlement remaining after using their home loan benefits. Though the VA requires that the loan be paid in full and the home disposed of before it will restore entitlement, there is a one-time exception to this rule.
In the case of military reassignment, this exception can come in handy. If you have enough entitlement remaining, you can use the remaining VA home loan benefit without selling the previous home or paying off the loan. Of course, you still have to qualify with income and credit.
For help with a second VA loan, call a VA-approved lender.