Can I Have Two VA Loans at the Same Time?

Recently a question came in asking whether it’s possible to have two VA home loans at the same time. While the answer depends on many things, including the nature of the second loan, how much VA entitlement remains and other factors, there are important details a VA borrower should know up front.

Many people thinking about taking out a second VA home loan are thinking about buying more property. It’s true that many are looking at second mortgage options or VA cash-out refinancing programs in order to use the money for home improvements or other purposes–who wouldn’t want to own another home if they can afford to do so?

VA loans depend on the amount of eligibility the borrower has. A first-time home buyer has 100% of their VA loan eligibility available to them. When the buyer closes the deal on a VA home loan, chances are good that they’ve used all their original VA loan entitlement. When the original loan gets paid off, entitlement can be restored at the borrower’s request and the entitlement can be used again.

A buyer who has entitlement remaining can borrow against it, but they will not be approved for a VA guaranty beyond the amount of that entitlement OR the amount of the VA “bonus entitlement” as per the changes made to the VA loan laws in 2008. The loan application will be examined by the lender and the borrower may be required to make a down payment.

VA loans are intended for properties the borrower will live in full-time. Known as the “primary occupancy” rule, the VA loan applicant must certify in most cases that they intend to live on the property as their main address. You can’t get a VA home loan for a summer home, and you can’t have a VA loan on a property intended as a rental unless you occupy one of the units yourself as the primary residence at closing time.