Multiple use and multiple loans possible with VA

Q: I’m a vet and I used my VA loan to pur­chase my first house. I am look­ing to pur­chase a 2nd home; will I be able to get another VA loan? My hus­band has never been in the mil­i­tary, if I am able to use another VA loan, will he be able to sign with me?

–LaTasha, Decatur, Georgia

A: As you know, the VA loan is a valu­able ben­e­fit for those that have served.  You can check out all the details at the VA web­site, but know that you can def­i­nitely use a VA loan more than once.  Heck, I’ve used the pro­gram three times.

I’m assum­ing that you paid off your orig­i­nal loan.  If that’s the case, then you’ll just go through the VA loan process again. The only dif­fer­ence (other than these extremely low inter­est rates!) is that the VA Fund­ing Fee increases on sec­ond and sub­se­quent loans.  For exam­ple, with no down pay­ment the fund­ing fee for a first time user would be 2.15%.  For sec­ond and sub­se­quent uses that fee would increase to 3.30%.  Of course vet­er­ans who are receiv­ing VA com­pen­sa­tion for service-connected dis­abil­i­ties are not required to pay the fund­ing fee.  And yes, you and your hus­band could do a joint appli­ca­tion for your next VA loan.

If you haven’t paid off your orig­i­nal VA loan, it gets a bit more com­pli­cated but depend­ing on your sit­u­a­tion you might be able to use any remain­ing enti­tle­ment to buy another home with­out hav­ing paid off your orig­i­nal loan.  If that’s the case, I would talk to an expe­ri­enced VA lender about what type of loan you could get in the con­text of your sit­u­a­tion. Remem­ber, a VA loan can only be used for a home that you’re going to occupy. Good luck!

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Examples given are hypothetical illustrations and not an indication of the benefits or features of any USAA product. You should seek policies and advice based upon your own particular circumstances. Sample loans are for illustration purposes only and are not a rate quote, pre-approval, or commitment to lend.

Scott Halliwell and JJ Montanaro are CERTIFIED FINANCIAL PLANNER™ practitioners with USAA Financial Planning Services, one of the USAA family of companies. Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and Certified Financial Planner™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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