Using Your VA Loan a Second Time
How to buy again, with or without selling your first VA home, and what it does to your down payment and fees.
The VA home loan benefit is not a one-time benefit. You can use it again after selling a home, and in many cases you can buy a second home with a VA loan while you still own the first, for example after a permanent change of station. What changes is how much entitlement you have available and how much the funding fee costs.
Two ways to use the benefit again
| Situation | What happens to entitlement |
|---|---|
| You sold the home and paid off the VA loan | You can ask the VA to restore your entitlement in full |
| You paid off the loan but kept the home | You can request a one-time restoration |
| A qualified veteran assumed your loan and substituted entitlement | Your entitlement can be restored |
| You still own the home with the VA loan open | That entitlement stays in use. You buy the next home with your remaining entitlement |
Example: a PCS move, keeping the first home
A service member bought a home for $300,000 with a VA loan, which tied up $75,000 of entitlement (25%). Orders move them to a county with a limit of $800,000, used here as a round example. They want to keep the first home as a rental and buy a $600,000 home.
| Step | Amount |
|---|---|
| Maximum entitlement in the new county (25% of the limit) | $200,000 |
| Entitlement already in use on the first home | -$75,000 |
| Remaining entitlement | $125,000 |
| Largest loan with $0 down (remaining entitlement x 4) | $500,000 |
| 25% of the new $600,000 purchase | $150,000 |
| Down payment typically needed | $25,000 |
So instead of putting 20% down on a conventional loan ($120,000), this buyer would typically need about $25,000 down with a second VA loan. Lenders apply this calculation with the actual county limit, so ask them to run it with your COE, or run it yourself in the VA entitlement calculator.
The occupancy rule still applies
Each VA loan has to be for a home you will live in. You certify that you intend to move in within a reasonable time after closing, which lenders usually treat as about 60 days. Your first home can become a rental after you have lived in it, but you cannot buy a home with a VA loan purely as an investment. For active-duty borrowers who are deployed, a spouse living in the home can generally satisfy occupancy.
The second-use funding fee
On a purchase with less than 5% down, the funding fee rises from 2.15% on first use to 3.30% on any later use. With 5% or more down it is the same as first use: 1.50%, or 1.25% with 10% or more. In the example above, $25,000 is about 4.2% of the price, so the 3.30% rate would apply to the loan unless the buyer raised the down payment to 5% ($30,000). Borrowers who are exempt pay no fee at all. Check the numbers in the funding fee calculator by selecting subsequent use.
Checklist for buying again
- Download a fresh COE to see your entitlement as the VA records it.
- If you sold your last home, request restoration of entitlement, using VA Form 26-1880.
- If you are keeping the first home, line up a lease, since lenders may count part of the rent as income.
- Get your new county's loan limit from your lender and run the calculation above.
Frequently asked questions
How many times can I use a VA loan?
There is no fixed limit. You can use the benefit again as long as you have entitlement available and meet the loan requirements.
Can I have two VA loans at the same time?
Yes, if you have enough remaining entitlement and you will live in the new home. The first home can then be rented out.
Do I pay a higher funding fee the second time?
Only with less than 5% down, where the purchase fee is 3.30% instead of 2.15%. Exempt borrowers pay nothing.
Sources
- VA.gov: entitlement and loan limits
- VA.gov: funding fee
- VA.gov: eligibility and restoration of entitlement
This page is educational and is not legal, tax or financial advice. Rules and rates can change, so confirm the details with the VA and your lender.