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VA Loan Entitlement - Second VA Loan

If you have already applied for a VA Loan, you may apply for a second VA loan provided that you have remaining entitlement. You maximum entitlement for the maximum $417,000 loan is $89,912. There are several stipulations that must be fulfilled in order to apply for a second VA Loan. The first loan must be paid for before reapplying for the rest of your entitlement. Lenders will generally lend up to four times the amount of your entitlement, based on whether your income is stable and you have good credit. Some lenders may require a combination of your entitlement guaranty and a cash payment to equal the sum of 25% the price of the property.

In order to request a second VA Loan, simply obtain a VA Form 26-1880. You can obtain this form online or at your local VA chapter. It is important to remember that while a veteran’s entitlement does not expire, active duty members are advised to use it before their service ends. Once an active duty service member retires, their entitlement is refigured based on the length that they served. This may result in a lower va entitlement than was available during active duty.

It is important to stress that your finances are in order before applying for a second VA Loan. If you have filed for bankruptcy, you must wait for at least 3 years past the date of being cleared from bankruptcy, to apply for another loan. Lenders see you as a credit risk if you are still in debt, therefore, they will not even consider you for a loan if your financial situation is still unstable.

Closing fees and funding fees also alter when applying for a second loan. For example, if you do not make a down payment, your funding fee is about 2% of the loan when applying for your first loan and it increases to 3.3% when you apply for your second loan.

Back to the Veterans' Loan Handbook Table of Contents.