The United States Department of Veteran Affairs (VA) guarantees a portion of a mortgage so that servicemen and women can be offered favorable rates by their private lenders. Those who have served our country and their surviving dependents are eligible for a VA loan. A VA loan honors our veterans, and our loan programs offers little or no down payment or mortgage insurance.
Veterans often wonder if they are eligible to benefit from VA loans multiple times. Thankfully, it’s a lifelong benefit! Once you’ve confirmed eligibility with a Certificate of Eligibility (COE), then you can apply for your loan. According to The VA Mortgage Center, the VA has a specific amount they will guarantee to repay your private lender should you fail to do so. Once you have repaid your initial mortgage or sold your home, you will be restored the entitlement in full and free to acquire another VA loan. Only a few particular circumstances would allow you to have two VA loans simultaneously, such as if your home were foreclosed or you’re an active servicemember and your permanent station is changing. This second loan however is limited to your remaining entitlement.
Keep in mind there are other factors required to receiving this loan, like the COE and some one-time payments. But a VA loan functions as a conventional loan, except for the benefit of the VA covering any missed payments. If you aren’t sure if a VA loan is right for you or if you want to look into refinancing your VA loan, contact one of our Loan Advisors in your area today.