VA refinance

VA Loan Entitlement: A Reader Question

June 11, 2014

VA Loan Entitlement: A Reader Question

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A reader asks, “Is there a maximum number of times that we can purchase a home or refinance our current house?”

The answer to this question depends greatly on circumstance, but in general a borrower is limited by two things when it comes to a new purchase VA home loan. One of those things is occupancy.

You cannot purchase more than one home at a time with a VA mortgage because you’re required to certify you will occupy the home being purchased as your primary residence.

Additionally, you are also limited by the amount of your VA loan entitlement. If you use most or all of your VA loan entitlement to purchase a home, you would have to pay off the home in full, or sell it and pay off the VA loan in full. Then a borrower can apply for restored VA loan entitlement to purchase a new home.

On a one-time basis, VA loan rules permit the borrower to get full VA loan entitlement restored without selling the first home purchased with a VA mortgage, but you will be required to pay off the VA loan in full in order to do this.

When it comes to refinancing loans, the VA does not specifically limit the number of times you can refinance the loan but your lender may require a minimum wait time–a seasoning period–before a borrower can refinance the previous loan. Your lender’s standards would affect the number of times you can refinance or the types of refinance loan options available.

Do you have a question about VA home loans? Ask us in the comments section.

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