VA Loan Benefit Limits and Use

by | Mar 28, 2022 | Education, Home Buying, The VA Home Loan, VA Loan, VA Loan Benefit

How Many Times Can I Use My VA Loan Benefit?

The VA loan benefit is a lifetime guarantee. This means that for qualifying Veterans, servicemembers, and surviving spouses, there is no limit on how many times you can use the VA loan benefit. However, there are other restrictions in terms of how you can use your benefit and how much the VA will guarantee.

How VA Loans Work

To understand how your VA entitlement works, you first have to understand how a VA loan works. VA loans are backed by the Department of Veterans Affairs and provided by private VA-approved lenders. Should you default on your VA loan, the VA guaranty will reimburse your lender for a percentage and sometimes the full amount of your loan. This creates less financial risk for the lender and allows for more favorable benefits for the borrower, for example, the no down payment requirement for VA loans.

VA Loan Entitlement

Your VA loan entitlement is essentially how much the VA will guarantee your private lender should you default on your loan. VA entitlement equals $36,000 of any loan equal to or less than $144,000 or 25% of any loan greater than $144,000. If you have already used your VA loan entitlement, you can fully restore your entitlement by paying off your VA loan and selling the property you purchased with a VA loan. You also can purchase more properties using the remaining VA entitlement.

No Limits On VA Loan Use

In conclusion, there is no limit to how many times you can use your VA loan benefit. But there are limits on how much the VA will guarantee.

Contact a Loan Specialist

Are you interested in getting pre-qualified for a VA home loan? Do you have more questions about the VA loan benefit or questions about your entitlement? The best way to get your questions answered is to reach out to a loan specialist with a VA-approved lender. Call (888) 232-1428 to speak with a loan specialist today!

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