Can a VA Loan Be Used More than Once? Is There a Limit?

The United States Department of Veteran Affairs (VA) used to be known as the Veterans Administration. They established the VA loan as a form of mortgage loan that service members, veterans, and surviving spouses alike can use. By default, the terms are generous for people that take on VA loans. Eligible people will be able to do so without needing a down payment or, if so, minimally. People that take advantage of this tend to acquire a competitive interest rate and have no access to private mortgage insurance.

Eligibility requirements vary when it comes to VA loans, depending on the service period.

Can a VA Loan Actually Be Used More than Once?

The short answer to this is yes. The answer to whether or not there’s a limit is no. For as long as service members, veterans, and surviving spouses live and have eligibility, they will be able to use their VA loan. Hand-in-hand with still having eligibility is having the ability to qualify with a lender. As long as those two are met, the VA loan can be taken out essentially an unlimited number of times. Sometimes, more than one VA loan can be taken out and active.

For the most part, the down payment is usually the heaviest issue when it comes to homeownership for borrowers. This is particularly crucial for people that are home buyers for the first time. VA loans are great for accessibility in terms of homeownership.

The VA Loan

As previously mentioned, the VA loans are not issued by the Department of Veterans Affairs. The VA merely established it and insures any mortgages that lenders end up giving out. It gives the lender reassurance and helps to considerably bring the risk of the lender down. VA loans usually have terms that are far more impressive than other loan types available out there, such as FHA (Federal Housing Administration) loans or conventional loans.

It should be noted that VA loans have occupancy requirements since they’re meant for primary residences only. If there are two primary residences at play, however, there could be two VA loans taken out at the same time.

VA borrowers who are in it for the first time with a less than 5% down payment will pay a 2.3% equivalent fee of the overall amount of the loan. However, subsequent borrowers with the same down payment will pay slightly more—3.6%.

Needless to say, having to pay nothing in terms of mortgage down payment comes with a certain caveat. There’s a VA funding fee to be paid, which is a one-time expense covering the VA loan program’s cost as a whole. A bigger down payment will, naturally, result in a lower funding fee payment. It’s usually financed into the loan if not paid during closing.

Your VA Loan Expert in Oak Lawn, Illinois

VA loans were established and are actively backed by the US VA. They can certainly be used more than once; in fact, as long as a qualified service member, veteran, or surviving spouse is alive, they can use it. There is no limit to the point that two VA loans can sometimes be taken out at the same time.

Trying to find mortgage lenders that can help you with VA loans? MidAmerica Bancorp, Inc. is here to help you out! We have a range of home loan and refinancing options available for Indiana, Oak Lawn, Chicago and throughout the state of Illinois, Florida, Michigan or Wisconsin. Call us at (708) 237-4050.