Can I Go Through a VA Loan More Than Once

By David Rouse

For many veterans, the Veterans Affairs home loan guarantee program is a benefit they enjoy for life. VA does not limit veterans to one guaranteed home loan, it allows them to finance and refinance homes multiple times. VA offers many home loan advantages that other mortgage programs do not offer. As of 2011, VA is one of the only zero down payment loan programs still commonly available. However, VA does limit how many VA guaranteed mortgages a veteran may have at one time.

The homeowner who purchased a first home using the VA home loan benefits may purchase additional homes using the same benefit. To qualify, the homeowner must refinance the existing VA loan into another loan program, or sell the home. VA only offers one home loan guarantee at a time to veterans. The veteran may refinance the VA loan into another loan program and choose to keep the home as an investment property or a second home and then purchase the new home using his VA benefits.

VA also offers refinance mortgage programs. The current loan does not have to be a VA loan to qualify for most of the refinance programs. However, VA offers one refinance program only available to veterans who currently have a VA loan. The Interest Rate Reduction Refinance Loan program is a streamlined refinance program that requires the existing loan be VA guaranteed. VA also offers rate and term refinance loans and cash out refinance mortgages to veterans regardless of what type of loan they currently have.

VA requires the veteran, or the veteran's family, occupy the home within 60 days of closing. VA does not allow homeowners to use the VA home loan guarantee program to purchase second homes or investment properties. VA does not require the homeowner always live in the property, but the homeowner should live in the property for a reasonable amount of time. The homeowner cannot move into the home 30 days after the loan closes and then move out 30 days later and meet VA's owner occupancy requirement

In most cases, VA does not lend directly to its veterans. VA guarantees loans made by lenders who are approved to offer the VA home loan program. The guarantee works like insurance for the lender. If the veteran defaults on the loan, VA reimburses the lender of any losses up to 25 percent of the total loan amount. If a veteran financed a home with a $200,000 loan, VA would reimburse up to $50,000 of losses if the lender had to foreclose. The pay for this, VA charges a funding fee when the loan closes. An active duty veteran pays 2.15 percent of the loan amount two VA when financing her first VA mortgage. If she purchases a second home she would pay VA a funding fee of 3.3 percent. Every purchase loan after the first one requires a funding fee of 3.3 percent. Fortunately, the veteran can finance this amount into the VA mortgage.

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