How to use a second VA home loan

PublishedSep 5, 2025|Time to read min

Quick insights

VA home loans are meant to be used to purchase a primary residence. However, they can also be used for a second home under very limited and specific conditions.
To use a VA loan on two mortgages at the same time, you must be able to demonstrate your ability to pay both loans simultaneously.
If your first VA loan is paid off, you can restore your full entitlement to purchase a second home by completing VA Form 26-1880.ec-form-26-1880

U.S. Department of Veterans Affairs (VA) loans are invaluable financial tools designed to help eligible veterans, active-duty servicemembers and qualifying spouses purchase a primary residence.

But what happens when life changes, and you need to buy another home? Perhaps you’re relocating, or your family is growing and you need more space.

VA loans are intended for primary residences, not secondary vacation homes or investment properties. However, under specific circumstances, you can use a VA loan to purchase a second VA-backed home, even while maintaining your first property. The key is meeting VA occupancy rules and understanding your available entitlement.

To use a VA loan for a second home, you’ll need to demonstrate financial stability and meet specific eligibility requirements. If your first VA loan has been fully paid off, you can potentially restore your full entitlement by filing VA Form 26-1880.ec-form-26-1880 Let’s break it all down.

What is a VA loan?

Before we get into the steps of using a VA loan for a second home, let’s cover what a VA loan is.

A VA loan, also known as a VA-guaranteed loan, is a mortgage provided with assistance through a program administered by the U.S. Department of Veterans Affairs.

These loans are designed to assist military servicemembers, veterans and eligible surviving spouses with buying a home. The most significant benefits include no required down payment, competitive interest rates and no private mortgage insurance (PMI).ec-va-gov-lgy-eligibility-toolkit

With the exception of one program, the Native American Direct Loan (NADL), the VA doesn’t administer these loans directly. Instead, they provide benefits to qualified lenders, who are then able to pass those advantages on to the homebuyer.ec-va-home-loan-types

Can you use a VA home loan for a second home?

You can use a VA loan for a second home, but there are some important rules to follow. VA loans have strict occupancy requirements, which means they’re intended for properties you’ll live in as your primary residence. Generally, you’re required to move into the property within 60 days of closing and live in it for the majority of the year.ec-chapter3-va-loan-guaranty

That said, there are some exceptions and situations where a second home could qualify for a VA loan. For instance, you might purchase a new primary residence while converting your existing VA-financed home into a vacation home or rental property and/or refinancing its mortgage to a non-VA loan.ec-va-home-loan-limits-apr25 You might need to relocate for work or family purposes, or find that you’ve outgrown your home due to changes in household size. If you own a house, you can get another VA loan with your full entitlement guarantee if you've paid off the loan for the home you own or refinancedrefinance-hl000061 the mortgage to a non-VA loan. If you haven’t paid off or refinanced the loan, you can still use a partial entitlement, which offers a limited guarantee.ec-second-home-va-loan

No matter the reason, you still need to meet the occupancy rules for the new home. You can’t use a VA home loan for a second home that you will not live in the majority of the year.

A few more rules:

You must be able to show the lender proof that you can afford both mortgages if you’re keeping the first property.
Your entitlement (the portion of the loan guaranteed by the VA) plays a significant role, so understanding whether you have partial or full entitlement is essential.
If the second home is a vacation property without plans to use it as your primary residence, you can’t use a VA loan.

So how many times can you use a VA loan? As long as you maintain eligibility and have remaining entitlement, there’s no written limit and you can use a VA loan multiple times throughout your life.

Why use a VA loan again?

Why tap into your VA home loan guaranty again? Simple. The benefits are exceptional:ec-va-gov-lgy-eligibility-toolkit

No down payment (if full entitlement applies): While partial entitlement may require a down payment, full entitlement allows you to skip this cost entirely.
Lower interest rates: VA loans typically come with more favorable rates than conventional loans.
No PMI: Unlike conventional loans, VA loans don’t require private mortgage insurance (PMI), which means long-term savings.

Again, keep in mind that you may not be able to reap all of these benefits if you’re using a VA loan a second time while retaining the first home, even if only temporarily. That said, if you’ve paid off, refinanced (to a non-VA loan) and/or sold the first home you used your VA home loan benefits for, these advantages will still likely apply.ec-va-home-loan-limits-apr25

Guidelines for a second VA home loan:

Here are some practices on how to use a VA loan for a secondary residence:

1. Sell your first home or figure out your mortgage payments

If your first VA loan is paid off (or if you decide to refinance or sell your original home), you can restore your full entitlement to use it for purchasing another home.ec-va-home-loan-limits-apr25 This may be a way to use a VA home loan for a second home, depending on VA guidelines. You can do this once with a one-time restoration benefit by completing a VA Form 26-1880.ec-form-26-1880

If you aren’t selling (or paying off the loan on your first property), you’ll need to make sure you can afford two mortgage payments at a time.

2. Find another servicemember to assume the mortgage

If you haven’t paid off your first VA loan and are struggling to restore your benefits, there’s another option to regain your entitlement while selling your property.

VA loans are assumable, meaning you can allow another eligible servicemember to take on your existing loan.ec-va-loan-guaranty-buyers-guide

When they take over the mortgage, your entitlement will be restored. This route saves you from having to pay off the loan entirely or wait until you can fully qualify for a second VA loan.ec-second-home-va-loan

3. Understand your entitlement

To understand how much of your VA loan benefit you have available, review your entitlement. VA loans are backed by entitlements, which determine how much the U.S. Department of Veterans Affairs will guarantee for your mortgage.

Basic Entitlement covers up to $36,000 (or 25% of $144,000, reflecting home prices when the VA loan program started).ec-chapter3-va-loan-guaranty This amount is shown on your Certificate of Eligibility (COE).ec-va-home-loan-limits-apr25
Bonus Entitlement bridges the gap between $144,000 and the higher home prices seen today. If you have full entitlement, this bonus allows for coverage of the full 25% of your loan amount above $144,000.ec-va-home-loan-limits-apr25

Again, if part of your entitlement is still tied up in your first property, you may only have a partial entitlement to use for your second home. This means you may need to make a down payment to cover the gap in loan guarantees.

4. Find the home you wish to buy

With a second VA home, this property must be used as your primary residence, even if you’re planning on retaining your current home.ec-form-26-1880

A key consideration when choosing your new home is ensuring you stay within the guidelines of what VA loans will cover in your area. Check with your lender because some may have loan limit caps. In general, VA loan limits are no longer applicable for those with full entitlement, but buyers with partial entitlement are still subject to these limits.ec-va-home-loan-limits-apr25

5. Work with a qualified lender

When it comes to VA loans, not all lenders are created equal. Partner with a lender that has extensive experience working with VA loans. They’ll help you understand your entitlement, calculate any potential down payments for partial entitlements and guide you through the paperwork.

Your lender will also help you get preapproved, giving you a clear understanding of the loan amount you qualify for and how to best approach your purchase.

6. Meet the occupancy requirement

VA loans come with an occupancy requirement. You must intend to live in the new home you’re buying as your primary residence. Typically, this has to happen within 60 days of closing.ec-chapter3-va-loan-guaranty

However, there are exceptions to this rule if you're unable to meet it due to specific circumstances, such as:ec-chapter3-va-loan-guaranty

Military spouse or dependents: If you're actively serving and can't move home right away, your spouse or child can fulfill the occupancy requirement.
Deployment: Active-duty members stationed elsewhere temporarily are still eligible, as deployment is considered temporary duty.
Retirement: If you’re within 12 months of retiring, you can purchase your second home now even if you don’t plan to live in it within 60 days (as long as that’s the plan after you retire). Only retirement on a specific date within 12 months qualifies.
Renovations: If major repairs or renovations are needed, you may delay moving in until the home is livable.

Can you use a VA loan to buy an investment property?

In most cases, you can’t use a VA loan to buy an investment property.

Technically, you may use a VA loan to purchase a multi-family home.ec-va-gov-lgy-eligibility-toolkit VA loan guidelines allow you to purchase a property with up to four units. The condition is that you must live in one of the units as your primary residence.ec-chapter3-va-loan-guaranty The remaining units can be rented out, potentially helping you offset the cost of your mortgage.

What is the VA funding fee for a second VA loan?

Whether you’re obtaining your first or second VA loan, you’ll need to pay a VA funding fee. This fee helps sustain the VA loan program, as there’s no monthly mortgage insurance involved.ec-va-funding fee-loan-closing

The fee amount depends on factors like your military service, the amount of your down payment (if any) and whether it’s your first or subsequent use of a VA loan.

For the first use:

Less than 5%: 2.15% funding fee
5% or more down: 1.5% funding fee
10% or more down: 1.25% funding feeec-va-funding fee-loan-closing

For subsequent use:

Less than 5%: 3.30% funding fee
5% or more down: 1.5% funding fee
10% or more down: 1.25% funding feeec-va-funding fee-loan-closing

There are a few exceptions. For example, if you’re receiving VA compensation for a service-related disability or are receiving Dependency and Indemnity Compensation (DIC) as the surviving spouse of a veteran, you will not need to pay a funding fee.ec-va-funding fee-loan-closing Speak with your lender for exact details specific to your circumstances.

VA loan FAQ

Can I have two VA home loans at the same time?

You can have two VA home loans at the same time. However, a VA-approved lender will need to certify your ability to repay both loans simultaneously.

Does a VA loan have to be for your primary residence?

VA loans are intended for financing a veteran’s primary residence. However, there are exceptions for specific situations, such as purchasing multi-unit properties, where living in one of the units may still meet the residency requirements.

Can I buy a second home with a VA loan?

VA loans are designed to be used for the purchase of primary residences only. However, it may be possible to use your remaining entitlement to purchase a second home under very specific conditions. Factor in your remaining entitlement, loan limits and occupancy requirements to determine if you’re eligible to do this.

In summary

A VA loan remains one of the most valuable tools for veterans and servicemembers looking to purchase a home.

Whether you choose to sell your current property, refinance it to a non-VA loan or manage two properties at once, understanding your entitlement and working with an experienced lender are keys to securing your next home with a VA loan smoothly.

No matter where you plan to live, the VA loan program can help you accomplish your goals confidently and efficiently. If you’re ready to take the next step or have questions about the process, reach out to a VA-approved lender today. It could be the first move toward finding your next home.