Can You Have 2 VA Loans at the Same Time?

Justin Kelly
September 30, 2022

One of the most frequently asked VA loan questions is: can I have 2 VA loans at the same time? The answer is yes; however, it depends on calculations that are based on the usage of the veteran’s entitlement with their current loan and how much remaining or allowable entitlement is available. To help you understand these calculations and how they affect you, we've included a breakdown of some examples from the VA.

VA Entitlement

A VA loan entitlement is how much the VA will guarantee on your loan. In other words, it's how much they're willing to pay a lender if you default on your loan. This amount can be restored if you pay back your VA loan and sell your property or repay in full any claim the VA has paid.

An easy way to check your entitlement amount is by requesting a Certificate of Eligibility (COE) through your lender or by mail.

Note: All dollar amounts below are simplified for explanation purposes. To see current conforming loan limits by county, refer to the ‘One-Unit Limit’ column in the Federal Housing Finance Agency's maximum loan limit table.

Full Entitlement

If you've never taken a VA loan before or if you've already paid off a previous VA loan and sold the property, you most likely have a full entitlement. This means that the VA will guarantee up to 25 percent of your loan amount.

Example 1

Loan Amount: $1,200,000

Maximum Guaranty: $1,200,000 × 25% = $300,000

Partial Entitlement

A partial entitlement means that your entitlement amount is reduced due to a VA loan that you are currently paying off or defaulted on in the past. In this situation, the VA will only guarantee the loan up to its conforming loan limit minus the entitlement you're currently using.

Example 2

For this example, the borrower used $70,000 of the entitlement on a prior VA-guaranteed home loan (not restored). The borrower is seeking to purchase another home with a loan amount of $200,000. In addition, the county loan limit for the property is $600,000.

$150,000 ($600,000 x 25%) - $70,000 (entitlement used) = $80,000 (remaining entitlement available)

OR

$200,000 (loan amount) x 25% = $50,000 (possible guaranty)

Maximum Guaranty = $50,000

Example 3

The borrower used $70,000 of the entitlement on a prior VA-guaranteed home loan (not restored). The veteran is seeking to purchase another home with a loan amount of $350,000. In addition, the county loan limit for the property is $300,000.

$75,000 ($300,000 x 25%) - 70,000 (entitlement used) = $5,000 (remaining entitlement available)

Maximum Guaranty = $5,000

No Entitlement

Example 4

The borrower used $36,000 of entitlement on a prior VA-guaranteed home loan (not restored). They are seeking to purchase another home with a loan amount of $144,000.

The county loan limit for the property is $300,000. Since the loan amount is not over $144,000 the borrower has no remaining entitlement available. Therefore, they cannot use their home loan benefit to guarantee the loan without obtaining restoration of entitlement.

Refinance

Example 5

The borrower used $36,000 of entitlement on a prior VA-guaranteed home loan (not restored). They are seeking to obtain a cash-out refinance on their current VA-guaranteed home loan in the amount of $180,000. The borrower has no other VA home loan and the county loan limit of the property is $300,000.

Loan Amount: $180,000

Maximum Guaranty: $180,000 × 25% = $45,000

Entitlement used may be restored for purposes of a cash-out refinance.

One Time Restoration

A one-time restoration is possible where the prior VA loan has been paid-in-full, but the borrower maintains the property from the original loan. If the veteran wants to use the benefit in the future for another purchase or cash-out refinance, both properties would need to be sold before entitlement can be restored.

Example 6

The borrower used $36,000 of entitlement on a prior VA home loan (paid-in-full/not restored). They are seeking to purchase another home with a loan amount of $180,000.

County loan limit of the property is $300,000.

Loan Amount: $180,000

Maximum Guaranty: $180,000 × 25% = $45,000

Connect with an Expert

While these are great examples of how to determine if you can take out a 2nd VA loan for the purchase of another property it is always best to contact a local independent correspondent lender or broker to help you understand all of your options and benefits available to you when it comes to VA mortgages and home loans.

You can contact us through our website or call 727-226-1040 for further assistance. 

CPF Mortgage is a family-owned and operated independent mortgage company and broker that provides expert home-financing support and devoted customer service.

Disclaimer: Christopher Paul Financial, LLC dba CPF Mortgage is a Florida Mortgage Lender NMLS 222883, Florida State License MLD929, Colorado registered mortgage company NMLS 222883, Georgia Licensed Mortgage lender and licensed Tennessee Mortgage Lender located at 10710 State Road 54, Ste. C101, Trinity, FL 34655. All loan approvals are credit driven and all decisions are based on underwriting credit approvals. All rates, terms, and programs are subject to change without notice. Borrowers should consider their options carefully when choosing a loan program. All loan amounts and figures for this article or are for example and illustration purposes only for general knowledge of how VA entitlement works.

All examples were provided by: https://www.benefits.va.gov/HOMELOANS/documents/docs/guaranty_calculation_examples.pdf

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Christopher Paul Financial, LLC dba CPF Mortgage is a Florida mortgage lender NMLS 222883, Florida state license MLD929, Colorado registered mortgage company NMLS 222883, licensed Tennessee mortgage lender NMLS 222883, and Georgia Residential Mortgage Licensee NMLS 222883. The main office is located at 10710 State Road 54, Ste. C101, Trinity, FL 34655. All loan approvals are credit driven, and all decisions are based on underwriting credit approvals. All rates, terms, and programs are subject to change without notice. Borrowers should consider their options carefully when choosing a loan program.
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