One of the biggest misunderstandings with VA loans is that homeowners think VA loan entitlement can only be used once. This misunderstanding comes from the requirement that the home being financed with a VA loan must be a primary residence. Even though this is a true requirement, people don’t realize that they aren’t required to use up 100 percent of their eligibility on their first home. As long as the second house is also defined as a primary residence, it’s possible to finance more than one house with VA loans. In fact, the VA has no rules for how many times you can use your entitlement. Using a VA loan for second home is definitely possible under several circumstances as long as you meet certain requirements.
VA Entitlement
After one VA loan is paid off, the borrower’s entitlement is restored, and they can use the full amount of entitlement towards their next loan. It’s important to know that members of the military who qualify for a VA loan are allowed 2 different types of entitlement: basic and bonus. The basic gives you $36,000 of coverage for homes costing equal to or less than $144,000. The bonus gives you $144,000 of coverage for homes costing between that amount and the conforming limit (usually $417,000). If you use up one on your first home, you can then use up the second on your second home. However, it is possible to exhaust all of your entitlement on one home if it is higher-priced.
