14 Feb How many va loans can you have?
VA loans are an excellent option for veterans and active duty service members looking to purchase a home. The VA loan program provides eligible borrowers many benefits, including no down payment and no mortgage insurance requirements. However, one of the questions many borrowers have is how many times they can use a VA loan. In this blog, we’ll take a closer look at the VA loan rules and limitations and answer the question of how many VA loans you can have.
VA loans are a lifetime benefit for eligible service members and veterans. This means you could use a VA loan as often as you want, as long as you meet the eligibility requirements each time. However, there are some limitations that you need to be aware of. The VA sets loan limits, determining the maximum amount you can borrow without making a down payment. These loan limits are updated annually and vary by location. The VA also has a “funding fee,” which is a percentage of the loan amount and must be paid upfront or included in the loan. The funding fee can vary based on factors such as whether you’ve used a VA loan before, the amount of your down payment, and your military category.
A critical consideration regarding how many VA loans you can have is the idea of “entitlement.” VA loan entitlement refers to the amount of money the VA will guarantee on loan. Each eligible borrower has a basic entitlement of $36,000, which means the VA will guarantee up to that amount on loan.
In some cases, eligible borrowers can obtain a second VA loan, known as a “bonus entitlement.” This bonus entitlement allows eligible borrowers to obtain a VA loan with a higher loan limit without making a down payment. However, it’s important to note that not all borrowers will qualify for a bonus entitlement, and the VA may limit the number of bonus entitlements you can use.
In conclusion, VA loans are an excellent benefit for eligible service members and veterans looking to purchase a home. While the VA loan program has some limitations, such as loan limits and funding fees, eligible borrowers can use a VA loan as often as they want, as long as they meet the eligibility requirements each time. If you’re considering a VA loan, it’s essential to work with a lender who is experienced in VA loans and can help you navigate the process. By understanding how many VA loans you can have and the rules and limitations of the VA loan program, you’ll be able to make an informed decision and find the best mortgage solution for your needs.