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Is a VA Loan a One-Time Benefit?

A military couple embrace each other and display their sparkling wedding bands


Many people think that they can only use their VA benefits once, but the truth is you have them for as long as you live. Many people also believe that if they received a VA loan 5, 10, 15 years ago they can’t apply for another one. That is also untrue. Your VA benefits are lifetime benefits, and VA Loan Spot is here to help you utilize them to the best of their abilities.

You can use your VA benefits over and over again

Because VA benefits aren’t a one-time deal, you can use them over and over again depending on your financial and employment situation. Even after you pass, your spouse can claim the benefits for as long as he/she lives.

Funding fee facts

Because a VA home loan doesn’t have a down payment or monthly mortgage insurance, a funding fee is substituted in. The funds collected go directly to the VA, which they use to cover those few loans that go into default. This process promises the VA Home Loan program to future veterans and their families.

Not everybody is charged a funding fee, but if you do receive one it will increase every time you get a VA loan if you decide to not pay a down payment. The first time funding fee is 2.15% of your desired loan. Anytime after that, a loan without a down payment will increase its funding fee to 3.3%. The good news is it never goes beyond that percentage. View the chart for further details.

Info graphic explaining the structure of VA loan funding fees

There are some VA funding fee exemptions. Disabled veterans who are receiving compensation from the VA for service-connected disabilities and spouses of veterans who died while on duty or from a disability connected to their service are both exempt. The veteran’s Certificate of Eligibility will confirm these conditions.

There are several other items to consider when using your benefits subsequently. Your entitlement is a major factor when determining your next VA home loan. Your VA entitlement is the percentage you qualify for in terms of your home loan. This percentage is found on your Certificate of Eligibility, or COE. Here are some instances when your entitlement will play a role in your VA benefits:

  • Allowing foreclosure on a home paid for by a VA loan will eat up some of your entitlement. It might not make you eligible for a new loan depending on how much of your entitlement is left.
  • Even if you have used most or all of their entitlement on a purchase of a home, that entitlement can be fully restored. Repaying the loan in full will give you the opportunity to sell your current home and purchase a new one with another VA home loan.
  • Once a mortgage is paid off, you can get a one-time restoration benefit on your entitlement and keep the house as a rental or vacation home.

More information concerning your VA benefits is available and our VA Home Loan Experts are eager to assist you. Whether it is determining your funding fee, figuring our your entitlement or applying for your next home loan, VA Loan Spot is committed to you. Call a specialist today at 800.537.2050.

Get the VA home loan you deserve.

 

Bobby Atkisson

Bobby Atkisson

Bobby Atkisson is a seasoned mortgage professional who provides high quality financial services to military members and veterans. With over 14 years experience in the lending and financial industry, his mission is to provide high quality mortgage programs with the most competitive interest rates. For expert advice and guidance on VA Home Loans and Refinance, contact Bobby today at 800-537-2050.