Restoring Your VA Loan Entitlement

Can I Use My VA Loan More Than Once?

A common misconception is that the VA home loan is a one-time benefit. The truth is, your VA loan entitlement can be restored and reused multiple times throughout your life. Understanding how restoration works is key to building your real estate portfolio.

Basic Restoration

There are several ways to achieve a basic restoration of your VA entitlement:

• Payoff prior VA Loan: Simply paying off your existing VA loan in full (usually by selling the home or paying off the mortgage entirely).
• Sell home prior to purchase of new home: If you sell your current VA-financed home, the loan is paid off, and your entitlement is fully restored for your next purchase.
• Have another Veteran assume your existing VA loan: If another eligible Veteran assumes your loan, they can substitute their entitlement for yours, freeing up your entitlement for a new purchase.
• Refinance to another loan type that's not VA: You can refinance your VA loan into a conventional or FHA loan. On a one-time basis, the VA allows you to restore your entitlement even if you keep the property.

Compromise Claim Restoration

If you have experienced a compromised VA loan (such as a short sale or foreclosure), it does not mean you can never use a VA loan again.

• The Veteran has a compromised VA loan: If the VA paid a claim on your behalf, that portion of your entitlement remains tied up until you repay the VA in full. However, if you have remaining bonus entitlement, you may still be able to purchase another home with zero down, depending on the loan limits and your remaining balance.

If you have questions about restoring your entitlement or want to see how much entitlement you currently have available, contact Garcia Vet Homes today. We can help you pull your Certificate of Eligibility (COE) and map out your next move.

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