Are you a veteran wondering if you can get a second VA loan without selling or paying off your first one? The answer is yes—and it’s more common than you think. In this guide, you’ll learn how a second VA loan works, who qualifies, and how to unlock your remaining entitlement to purchase another home.
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What Is a Second VA Loan?
A second VA loan allows eligible veterans to have more than one active VA mortgage at the same time. This benefit is made possible through split entitlement, also called second-tier entitlement. It can help you:
- Buy a new home while keeping your current one
- Must be your primary residence
- Move without selling or refinancing your existing VA home loan
Can You Have Two VA Loans at the Same Time?
Yes, under certain conditions, the VA allows eligible veterans to take out a second loan. The key is how much of your VA entitlement is still available after your first loan.
For example:
- VA guarantees up to 25% of the county loan limit (e.g., $766,550 in many areas for 2025).
- If you used $300,000 of entitlement on your first home, you may still have room for a second VA loan without needing to pay off the first.
How VA Entitlement Works
VA entitlement is the amount the VA guarantees on your loan. You typically have a basic and bonus (or second-tier) entitlement. Here’s how to use it for a second loan:
- Calculate the remaining entitlement
- Apply it toward the new loan
- Pay the 25% difference as a down payment if needed
This allows you to buy a new primary residence while keeping the first VA-financed property as a rental or second home.
Who Qualifies for a Second VA Loan?
To qualify, you must:
- Be eligible for VA benefits with a valid Certificate of Eligibility (COE)
- Use one of the homes as your primary residence
- Meet VA income and credit requirements for both mortgage payments
- Follow VA occupancy rules (you must move into the new home within 60 days)
Common Reasons to Get a Second VA Loan
1. You’re relocating but want to keep your current home
Veterans often move due to career changes, PCS orders, or life transitions. With a second VA loan, you can purchase a new primary home and keep your current one as a rental or backup.
2. You want to move or purchase a larger home
Over the years we out grow our homes and we need a home that will fit the needs of our family. With your second VA loan, you can move to another area you like better or purchase a larger house that fits your lifestyle better.
3. You’re investing in real estate
Buying a second home with your VA loan entitlement can also be a great investment opportunity—as long as the VA occupancy rules are followed.
VA Occupancy Requirements
To use a VA loan, you must certify that you’ll live in the home as your primary residence. When using a second VA loan, this applies to the new home you’re buying. You cannot use both loans for investment-only properties.
How to Apply for a Second VA Loan
Working with an experienced VA lender is essential. Here are the steps:
- Check your remaining entitlement
- Request your updated COE
- Get pre-approved with a VA-approved lender
- Find a new primary residence
- Complete the second VA loan application
Real Example of Split Entitlement
You bought your first home with a VA loan for $300,000 in Cook County (2025 limit: $766,550). You still have $466,550 in entitlement left. You can now:
- Buy a second home for $400,000
- Use remaining entitlement to cover the VA guarantee
- Put a small down payment (if any)
Other VA Loan Options to Know
If you’re considering different paths, here are some other VA-backed products:
- VA IRRRL (Streamline Refinance): Refinance quickly with no income or appraisal required
- VA Cash-Out Refinance: Tap into equity for cash, home improvements, or debt payoff
- VA Jumbo Loan: Buy a home above county limits with competitive rates
- VA Renovation Loan: Finance purchase and repairs in one loan
Final Thoughts: Why a Second VA Loan is a Smart Move
A second VA loan is one of the best-kept secrets in the VA loan program. With proper planning, veterans can use it to:
- Move without selling
- Build long-term wealth through real estate
- Keep their VA benefits working for them
At MacLagan Home Loans, we specialize in helping veterans navigate complex VA loan scenarios. Let us help you unlock your entitlement and take the next step toward homeownership or investment.
Second VA Loan FAQ
How much of a down payment is needed for a second VA loan?
The required down payment depends on how much of your VA entitlement is still available. In many cases, the down payment is minimal and still often better than other loan types.
Can I rent out my current home to help qualify for a second VA loan?
Yes, you can use the rental income to help you qualify for your second VA loan. The rental income is used only to offset the mortgage payment on your departing residence and any additional income from that property will not be counted toward your gross monthly income.
Is the process harder harder than the first VA loan?
No, the process is exactly the same as when you purchased your home with your first VA loan. The only difference is you will have to provide a lease agreement for your departing residence.
If my down payment ends up being higher than a FHA loan, is it better to go with a FHA loan?
In some cases it might be better to go with a FHA loan. For example say you were purchasing a $400,000 house. An FHA loan only requires 3.5% down ($14,000) and with your remaining entitlement with your second VA loan you had to put 7% down ($28,000), then it would be better to go with a FHA loan.
In other situations, you would be better sticking with a VA loan, since there is no mortgage insurance, and if you are receiving VA disability your funding fee is waived. Compared to a FHA loan, you have monthly mortgage insurance and an upfront mortgage insurance of 1.75% of your loan amount.