VA Loan: The Complete Guide by Security America Mortgage 

VA loans offer one of the most affordable paths to homeownership for veterans, active-duty service members, and eligible surviving spouses, but the rules around eligibility, entitlement, and loan limits can be confusing.

This guide breaks down how VA loans really work, how many times you can use them, and what to expect when buying, refinancing, or building a home using your VA benefits. Whether you’re just getting started or planning your next move, this resource will help you make confident, informed decisions.

Key Takeaways About VA Loans

• You can use your VA loan more than once. Heck, you might even hold two at the same time if you’ve got leftover entitlement
• Your VA entitlement? That’s what decides if you can buy your next house with zero down
• PCS orders and partially used entitlements – these usually let you snag a second VA loan
• Full entitlement comes back when you sell or pay off your old VA loan

Understanding Entitlement for Multiple Homes

So here’s the thing – lots of vets think the VA loan works only one time. Wrong. There’s actually no cap on how many times you can use this benefit throughout your entire life. You just gotta stay eligible and have enough entitlement left. You can even hold two VA loans at once. Yeah, really. But only under certain conditions.

Whether you can reuse the benefit and hold multiple loans? Well, that depends completely on your VA Entitlement.

What is VA Loan Entitlement?

Here’s the deal with VA loan entitlement. It’s basically the dollar amount the Department of Veterans Affairs promises your lender against loss if you default. Pretty straightforward. This guarantee? It’s what lets lenders offer the VA loan’s biggest perks. We’re talking zero down payment. No private mortgage insurance (PMI). The good stuff.

Two types of entitlement decide how much you can borrow:

• Basic Entitlement (Primary): This one’s fixed at $36,000. Covers loans up to $144,000
• Bonus Entitlement (Secondary/Second-Tier): Kicks in for loans over $144,000. Usually covers 25% of the county loan limit for qualified vets

Full vs. Remaining Entitlement

Your entitlement status? It controls the terms on your next loan:

You can restore your full entitlement by doing one of these:

1. Sell the property and pay off the VA loan. Then apply for restoration
2. Use the One-Time Restoration option. This works if you paid off the loan but wanna keep the home. Often means refinancing to a conventional loan

Can You Have Two VA Loans at Once?

Yeah absolutely. Holding two VA loans simultaneously? Totally possible. But here’s the catch – the new property must be your primary residence. Can’t be an investment property or vacation home.

This usually applies to:

• Permanent Change of Station (PCS): Military orders make you move to a new location? You might be able to buy a new primary residence with a VA loan before selling the first. Just need enough remaining entitlement to cover the guarantee on the second loan
• Using Remaining Entitlement: Say your first VA loan only used part of your entitlement. Maybe the home price was lower than the county loan limit. You can probably use the leftover entitlement for a second primary residence

VA Loan Programs

Shopping for a VA loan? Being efficient with your time really matters here. As CEO of Security America Mortgage, I genuinely value your time. Our loan officers know all types of VA loans inside out. Front to back. We’re honored to serve those who served. We love the VA home loan program. This guide talks about why the VA home loan might work perfectly for you.

Every VA home loan program is unique. Different situations, different needs. At Security America Mortgage, we offer standard VA loans.

No private mortgage insurance. No down payment needed. No VA funding fee for qualifying disabled Vets. Credit score tolerance. Competitive interest rates. No VA loan limit. Flexibility to use your VA loan benefit in different ways. The list goes on.

Down Payment and Assets

No down payment needed on VA loans. Simple as that. But you gotta have assets as reserves. Without any money in the bank? You’ve got no protection against tough economic times. Job loss. Unexpected expenses. Stuff happens.

Having money in the bank to cover monthly payments matters a lot. This varies for every situation. Based on compensating factors. Your debt to income ratio helps decide if you qualify for a VA loan.

VA closing costs are needed as reserves. But they’re limited by the VA. Often called non-allowable. When negotiating to buy a home? We recommend a Military friendly Realtor. Someone who gets how to secure a seller contribution. This covers some closing costs. Remember – no down payment doesn’t mean no closing costs. Big difference there.

Overall, VA loans don’t need tons of assets. No minimum down payment requirement. If you’re buying a 300K home? You should probably have reserves of at least 9K minimum. Sometimes more depending on your situation.

Types of VA Loans

Security America Mortgage offers many types of VA loans. Below you’ll see info about several different options. VA purchase loan, VA construction loan. VA renovation loan. Native American direct loan. Interest rate reduction refinance loans. Let’s start with the VA Construction loan first.

Military Service History

Military service history means an individual’s record of service in the armed forces. Simple enough. This record includes stuff like dates of service. Rank. Awards and decorations. Duty stations. Other details about the individual’s military service.

• A DD214 – also called a Certificate of Release or Discharge from Active Duty – that’s a document the Department of Defense gives to service members. Who gets it? People who completed their military service. Got honorably discharged. Or retired from the armed forces.

• The DD214 has important info about the service member’s military service. Dates of service. Rank at discharge. Awards and decorations received. Military job or specialty. Any disciplinary actions taken against them. All of it’s in there.

• The DD214? It’s the most important document a veteran has. Hands down. It verifies their military service. Can be used to access lots of benefits and services. Veterans benefits. GI Bill benefits. VA home loan benefits. You name it.

VA Loan Guaranty

A VA loan guaranty’s a benefit from the Department of Veterans Affairs (VA). Goes to eligible vets. Active-duty service members. Surviving spouses. This benefit lets them get a mortgage loan with great terms and conditions. No down payment. No private mortgage insurance needed.

When a borrower gets a VA loan, the VA guarantees part of the loan amount to the lender. This guarantee works as insurance for the lender. It encourages them to offer better terms to the borrower. Lower interest rates for example.

Borrower defaults on the loan? The VA pays the lender part of the outstanding balance. Helps cut their losses. This VA guaranty also reduces the financial risk for lenders. Makes it way easier for vets to get a mortgage loan with competitive terms.

What is the VA Funding Fee?

The VA funding fee’s a one-time fee. The Department of Veterans Affairs charges borrowers who get a VA home loan. The fee’s a percentage of the total loan amount. How much? Depends on various factors. Type of loan. Size of the down payment. Whether the borrower got a VA loan before.

The funding fee helps offset the cost of running the VA home loan program. Reduces the overall cost to taxpayers. The fee can be financed as part of the loan. Borrowers don’t gotta pay it outta pocket upfront. But financing the fee increases the overall loan cost. Keep that in mind.

Certain borrowers might be exempt from paying the VA funding fee. Vets who have a service-related disability. People who qualify for VA compensation. Also, surviving spouses of vets who died in service? Or from a service-connected disability? They might be exempt too.

Credit Score and Financial Qualification

The Department of Veterans Affairs (VA) has no minimum credit score requirement for VA home loans. None whatsoever. But here’s the reality – most lenders who provide VA loans typically want a credit score of at least 620 or higher. Why? Lenders wanna make sure borrowers can repay the loan. A higher credit score generally shows a borrower’s creditworthiness. Makes sense.

While there’s no official minimum credit score for VA loans, lenders can still set their own credit score standards. Freedom to choose. Some lenders might want a higher credit score. Others might work with borrowers who have lower credit scores. Depends on their overall financial profile.

Besides a credit score, lenders also look at other factors. When deciding whether to approve a VA loan. Borrower’s income. Employment history. Debt-to-income ratio. Other credit-related stuff. The lender uses a combo of these factors. Decides if the borrower qualifies for a VA loan. What terms will apply.

Key Points Veterans Must Understand

• VA entitlement decides if you pay a down payment on your next VA loan. Pretty important stuff
• Full entitlement typically means $0 down on your next purchase. Sweet deal
• Remaining entitlement might require a down payment. Depends on county loan limits
• Two VA loans at once? Possible under PCS or leftover entitlement

VA benefits generally include:

• No PMI
• No down payment
• Competitive interest rates
• Flexible credit requirement

The VA loan program can be used multiple times during a vet’s life. Not just once.

Certificate of Eligibility (COE)

A Certificate of Eligibility (COE) is an official document from the Department of Veterans Affairs (VA). Verifies a borrower’s eligibility for a VA home loan. The COE’s important. Really important. Lenders need it to process and approve a VA loan application.

To get a COE, the borrower must meet certain eligibility criteria. Generally includes having served on active duty in the military. Being a vet who was honorably discharged. Or being a surviving spouse of a vet who died in service. Or from a service-connected disability.

The COE has info about the borrower’s length and character of service. Plus their entitlement to VA home loan benefits. The COE also says what type of loan the borrower qualifies for. VA purchase loan. VA cash-out refinance loan. VA Interest Rate Reduction Refinance Loan (IRRRL). One of those.

Several ways exist to get a COE. Security America Mortgage has direct access to the VA portal. Means you can get a COE fast. Really fast.

How Do VA Loans Perform in Today’s Mortgage and Real Estate Environment?

VA home loans stay popular for eligible borrowers in today’s mortgage and real estate world. Mainly because of their flexible eligibility requirements. Competitive interest rates too.

One big plus of VA loans? They typically need no down payment. Makes them more accessible for borrowers. People who don’t have lots of savings to put toward buying a home. Also, VA loans don’t require private mortgage insurance (PMI). This means lower monthly mortgage payments. Compared to other loan types anyway.

For interest rates, VA loans have historically offered lower rates. Than many other loan types. Helps borrowers save money over the loan’s life. Can add up to serious savings.

But like all loan types, VA loans are subject to market conditions. Interest rate changes. This can impact their performance in the current real estate world. In some areas – particularly areas with high demand and low inventory – home prices might be rising fast. Really fast. 

Makes it tougher for buyers to find affordable properties. This can be especially challenging for VA borrowers. Who might be limited in their ability to put down a large down payment.

Overall, VA loans remain a solid option. For eligible borrowers in today’s mortgage and real estate world. But borrowers should carefully look at their financial situation. Compare loan options. Make sure they’re getting the best possible deal.

How Many Times Can You Use a VA Loan?

No limit exists on the number of times you can use a VA loan. To purchase or refinance a home. As long as you meet the VA’s eligibility requirements? And the property you’re buying or refinancing qualifies for a VA loan? You can use a VA loan multiple times throughout your lifetime. Pretty sweet.

But there are some restrictions on how much you can borrow with a VA loan. This might impact your ability to use a VA loan multiple times. The VA sets limits on the amount of money it’ll guarantee for each loan. These limits can vary. Based on the property’s location. The number of times you’ve used a VA loan before.

Generally, the VA loan limit for a single-family home is $548,250. In most parts of the country anyway. But this limit can be higher in areas with higher housing costs. If you’ve used a VA loan before, your remaining entitlement might also impact the amount you can borrow. With your next VA loan.

Also important to note – if you have an existing VA loan? You might need to sell or refinance the property before you can use another VA loan. To buy a new property. The VA typically requires borrowers to sell or refinance their existing VA loan. Before they can get another VA loan for a new property.

VA Loan Requirements and VA Loan Eligibility

To qualify for a VA loan, you must meet certain requirements. Set by the Department of Veterans Affairs (VA). These requirements include:

• Eligibility: You must be a vet who served on active duty. In the Army, Navy, Air Force, Marine Corps, or Coast Guard. Or in the National Guard or Reserves. Must have received a discharge other than dishonorable. Surviving spouses of vets who died in service? Or from a service-connected disability? They might also qualify

• Income: You must have steady income. Be able to afford the monthly mortgage payments. The VA doesn’t set a minimum income requirement. But lenders might have their own guidelines

• Credit Score: While the VA doesn’t require a minimum credit score, most lenders will have their own requirements. Generally, a credit score of 620 or higher is preferred

• Property Requirements: The property you’re buying or refinancing must meet certain requirements. Being in good condition. Being used as your primary residence

• Entitlement: You must have sufficient entitlement. The amount of money the VA guarantees for your loan. How much entitlement you have? Depends on your military service. The VA determines your entitlement based on your Certificate of Eligibility (COE)

• Occupancy: You must plan to occupy the property as your primary residence. Within a reasonable time after closing the loan

While the VA sets basic eligibility requirements for VA loans, lenders might have additional requirements. Or guidelines that borrowers must meet. To get approved for a loan.

VA Loan Spouse & Surviving Spouse Requirements

VA loans are issued based on a vet’s military service. But spouses might still be involved in the loan. Depending on the situation. How a spouse can participate – or whether they can use VA benefits at all – depends on eligibility status. Entitlement rules. Special VA exceptions.

Can a Spouse Use a VA Loan Without the Veteran?

In most cases, a spouse can’t use a VA loan on their own. Unless they qualify as an eligible surviving spouse. VA loan benefits aren’t automatically transferable through marriage alone. Doesn’t work that way.

But a spouse might be eligible to use VA benefits independently. If they are:

• The unmarried surviving spouse of a vet who died from a service-connected disability
• The surviving spouse of a vet who was rated totally disabled. And later passed away
• The spouse of a service member who’s Missing in Action (MIA). Or a Prisoner of War (POW)

Eligible surviving spouses must get their own Certificate of Eligibility (COE). To use the VA loan benefit.

Using a VA Loan With a Spouse

When buying a home together, a spouse can be included on a VA loan. In one of two ways:

• As a co-borrower: A spouse’s income and credit can be used. To help qualify for the loan. This is common. Fully allowed under VA guidelines
• As a co-signer: Sometimes a spouse might co-sign. To strengthen the application. Though co-borrowers are typically preferred

Being married to a vet doesn’t give a spouse their own VA entitlement. But it can help with qualifying strength. When applying jointly.

Surviving Spouse VA Loan Eligibility

Surviving spouses who meet VA eligibility requirements might be able to:

• Purchase a primary residence using a VA loan
• Reuse the benefit if entitlement’s available
• Qualify for VA loan terms. Like no down payment. No private mortgage insurance

Eligibility depends on marital status. Cause of death. Whether the surviving spouse has remarried. A VA-issued Certificate of Eligibility (COE) is required. Before applying.

Divorce and VA Loan Eligibility

Divorce doesn’t transfer VA loan eligibility to a former spouse. Once divorced:

• The ex-spouse can’t use the vet’s VA loan benefit
• Eligibility remains tied to the vet’s service record
• Any remaining entitlement stays with the vet

Can You Buy Land With a VA Loan?

VA loans can’t be used to buy land by itself. Nope. The VA home loan benefit is designed for buying, building, or improving a primary residence. Not vacant land.

But land can be included in a VA loan. When it’s part of a construction or home purchase deal.

When VA Loans Can Include Land

You can use a VA loan if:

• The land’s bought together with a home
• The land’s included as part of a VA construction loan
• The property will be used as your primary residence

In these cases, the VA loan covers the home and the land together. Not the land alone.

When VA Loans Cannot Be Used

VA loans can’t be used for:

• Vacant or raw land purchases
• Land held for future development
• Investment or recreational land
• Agricultural land without a residence

If no home’s being built or purchased, the VA loan doesn’t qualify. Simple as that.

VA Construction Loans and Land

Vets who wanna buy land and build? Might qualify through a VA One-Time Close construction loan. This allows:

• Land purchase
• Construction financing
• Permanent VA mortgage

All rolled into one single loan. Pretty convenient.

VA Loan Rates: Lower Rates and the Advantage Over Conventional Loans

VA Loan interest rates are relatively low. If you have a minimum 600 credit score? And there’s no down payment? If you plan to buy a home in Texas? Consider applying for a VA home loan.

Though there are no limits to the amount a VA loan can be, there’s a limit to how much liability the VA is willing to assume. This can affect the amount of money your lender will let you borrow. Without a down payment.

Rates are affected by the mandatory VA Funding Fee. A percentage of the loan amount. Paid at closing. With an exception for Vets with service connected disabilities. No Private Mortgage Insurance (PMI) option further lowers the effective monthly payment. Enhances the rate advantage.

Property Requirements

To qualify for a VA loan, the property you’re buying or refinancing must meet certain requirements. Set by the Department of Veterans Affairs (VA). These requirements include:

• Occupancy: The property must be used as your primary residence. VA loans can’t be used to buy investment properties. Or vacation homes
• Property Type: The property must be a residential property. Single-family homes. Townhouses. Condominiums. Multi-unit properties like duplexes and triplexes might also qualify. Provided you live in one of the units
• Property Condition: The property must be in good condition. Meet certain minimum property standards set by the VA. These standards ensure the property’s safe. Structurally sound. Sanitary
• Appraisal: The property must be appraised by a VA-approved appraiser. To determine its value. Make sure it meets the VA’s minimum property standards
• Location: The property must be located in the United States. Or one of its territories. Must be located in an area where the VA is authorized to guarantee loans
• Title: The property must have clear title. No liens or other issues that could impact your ownership of the property

While the VA sets basic property requirements for VA loans, lenders might have additional requirements. Or guidelines that borrowers must meet. To get approved for a loan. Also, if you’re buying a condominium, there might be additional requirements. Related to the condo project itself. Like the percentage of units that are owner-occupied.

What Are VA Loan Limits?

VA loan limits are the maximum amount of money. The Department of Veterans Affairs (VA) will guarantee on a VA loan. These limits are based on the county where the property’s located. They’re meant to help ensure vets can buy homes. In areas where housing prices might be higher.

VA loan limits vary by county. They’re determined based on the “conforming loan limit”. Established by the Federal Housing Finance Agency (FHFA). For conventional mortgages. For 2022, the VA loan limits for most counties in the United States range from $548,250 to $970,800. Higher limits for certain high-cost areas.

VA loan limits don’t represent the maximum amount a borrower can borrow. On a VA loan. Instead, they represent the maximum amount of money the VA will guarantee. On a loan.

Borrowers might still be able to get a VA loan. That exceeds the county loan limit. But they might need to make a down payment. On the amount that exceeds the limit.

Also, borrowers who’ve previously used their VA loan entitlement might have lower loan limits. Based on the amount of their remaining entitlement.

Are There VA Loan Limits for Veterans with Full Entitlement?

Yeah there are still VA loan limits. For vets with full entitlement. But the VA doesn’t impose a limit on the amount they can borrow. The loan amount might still be limited by the lender’s underwriting requirements. The borrower’s income and creditworthiness. The appraised value of the property.

Sometimes lenders might also impose their own limits. On the amount that can be borrowed. Even if the vet has full entitlement.

Also, borrowing too much can lead to financial strain. So carefully consider your financial situation. Your ability to repay any loans. Before proceeding.

How Does a VA Loan Work?

A VA loan is a type of mortgage loan. Guaranteed by the Department of Veterans Affairs (VA). The VA loan program was designed to help vets. Active-duty service members. Their families. Buy homes with favorable terms and conditions.

Here’s how a VA loan works:

Security America Mortgage has nearly a 5-star rating with Google. There are several good VA construction loan lenders, but they don’t provide the same level of personalized service. At Security America Mortgage, you can count on your needs being placed first. Always.

Garrett Packett
CEO & Founder, Security America Mortgage

How to Find the Ideal VA Loan Lender for Your Unique Homeownership Goals

This is why vets, active duty military members and eligible spouses have some of the most impactful VA loan benefits. No down payment. No private mortgage insurance (PMI). Though the VA backs the loan, it’s the VA loan lender that truly makes or breaks your homebuying journey.

With a seasoned, special lender, you’ll also be offered competitive interest rates. Combined with ease of approval. Expertise specific to your situation. Financing for new construction. Or the purchase of a manufactured home. Assistance when dealing with any credits challenges.

Use this guide to compare banks. Credit unions. Independent mortgage companies. Find a network of lenders. That can compete for your VA entitlement. With no pressure.

Uniformed Services Earning VA Loan Benefits

Uniformed Services Earning VA Loan Benefits” refers to the process. By which an active-duty service member, National Guard or Reserve member, or vet accumulates eligibility. For a VA home loan.

Eligibility’s based on a minimum period of active duty. Or other service. Plus other factors. Like honorable discharge. Character of service.

• The amount of eligibility a service member or vet can earn depends on several factors. Length of service. Type of service. Whether the individual’s used any of their eligibility before.

• The VA will issue a Certificate of Eligibility (COE). That specifies the amount of eligibility. A borrower has earned.

The VA loan benefits earned through uniformed service can be used. To buy a primary residence. Refinance an existing mortgage. Make home improvements.

The VA guarantees part of the loan to the lender. This allows the borrower to get favorable terms and conditions. No down payment requirement. No private mortgage insurance (PMI). Competitive interest rates.

Earning VA loan benefits doesn’t guarantee loan approval. Borrowers will still need to meet certain credit and income requirements. To get approved for a VA loan. Also, VA loan benefits aren’t a one-time benefit. Eligible borrowers can use their VA loan benefits multiple times. Throughout their lifetime. As long as they meet the eligibility requirements.

VA Loan Guidelines: Eligibility, Income, and Property Requirements for Approval

VA Loan rules explain how vets and active duty military members get to the yes. On their mortgage. The most important things are the COE. Stable income and enough income. Acceptable debt-to-income ratios (DTI) and residual income. Planning to live in the property.

Though the VA has minimum credit requirements, the lender will also look at a borrower’s overall credit structure. Eligible property types are new and existing single-family homes. VA-approved condos or townhouses. Make sure you have all required documents. Your COE. Pay stubs and tax returns. To speed up the process.g

How to Get a VA Loan with Bad Credit

If you have bad credit? You won’t be able to get a VA loan. You’ll find it impossible. To get a lender to approve it. Just because the VA doesn’t have a minimum credit score requirement? Doesn’t mean your lender doesn’t either.

For general VA loan benefits and eligibility, visit our homepage. To explore all your financing options.

FAQs – VA Loans

Can I have two VA loans at the same time?

Yeah, if you have remaining entitlement. And the new property will be your primary residence.

How do I restore my VA entitlement?

Sell the property and pay off the VA loan. Or use the one-time restoration option.

Does PCS allow a second VA loan?

Yeah, PCS orders typically qualify you. For a second VA loan while keeping the first.

Do VA loan limits still matter?

Only if you have partial entitlement. With full entitlement, there’s no VA-imposed limit.

How many times can I use my VA loan benefit?

No limit. You can use it as many times as you qualify. Throughout your life.

What credit score is required?

The VA has no minimum. But most lenders want at least 620.

Can I buy an investment property using a VA loan?

Nope, VA loans are only for primary residences.

Can I use a VA loan for construction?

Yeah, through a VA construction loan. Or VA renovation loan.

Can my wife use my VA loan without me?

Not unless she qualifies. As an eligible surviving spouse.

Can a civilian spouse be on a VA loan?

Yeah, as a co-borrower. To help with qualifying. But they don’t get their own entitlement.

Can a surviving spouse get a VA loan?

Yeah, if they meet eligibility requirements. And get a COE.

Does divorce affect VA loan eligibility for a spouse?

Yeah, the ex-spouse loses any connection. To the VA benefit after divorce.

Can a spouse use VA loan benefits after the veteran dies?

Yeah, if they qualify. As an eligible surviving spouse.

Does the VA offer land loans?

Nope, but land can be included. With a home purchase or construction loan.

Can I buy land and build a house with a VA loan?

Yeah, through a VA One-Time Close construction loan.

Can a VA loan be used for vacant land?

Nope, there must be a home. Being built or purchased.

Can I use a VA loan to buy land first and build later?

Nope, the VA loan must cover both. The land and construction together.