Summary: VA loans have big perks for eligible military members, including the fact that loans can be secured without a down payment. The question is, how many times can you use a VA loan in Washington State? This article will give you all the answers you need.
The VA home loan program offers unique benefits to eligible home buyers in Washington State. VA loans allow qualified military members and veterans to buy a house in Washington with no money down, and often without mortgage insurance. Additionally, it’s one of the easier mortgage programs to qualify for, because of the government backing. So there’s a lot to like.
But what if you’ve used the program in the past? Can you use another loan to buy a house in Washington State, if you’ve already used your entitlement once before? If yes then how many times can you use a VA loan?
Here’s the good news: In many cases, home buyers can “restore” their eligibility to buy another home with a VA loan, even if they’ve already used the program in the past.
Using a VA Loan More Than Once
This home loan program is managed by the U.S. Department of Veterans Affairs. On the Department’s website, it mentions the following about using a loan more than once:
“Restoration of Entitlement: Veterans can have previously-used entitlement ‘restored’ to purchase another home with a VA loan…”
They then go on to list scenarios where a veteran could restore his or her entitlement, in order to use the program again. The benefit can be restored and reused if:
- The home that was previously purchased using VA loan has been sold and the mortgage loan was subsequently paid off fully, or…
- Another qualified veteran (and home buyer) “agrees to assume the VA loan and substitute his or her entitlement for the same amount of entitlement originally used by the Veteran seller.”
Those are the scenarios for “basic restoration” of eligibility, which allows the veteran to use another VA loan to buy a house in Washington State.
There are also “special restoration cases” that can allow a borrower to reuse the program. According to VA Pamphlet 26-7, a veteran (and previous program user) can obtain restoration of the entitlement used on a prior VA loan under any of the following circumstances:
- The previously used VA loan has been paid in full and the veteran / homeowner has applied for a mortgage refinance loan that will be secured by the same property that was used to secure the previous loan. This includes refinance scenarios where the prior mortgage debt “will be paid off at closing from a VA refinancing loan on the same property,” or…
- The prior loan has been paid in full, but the veteran has not disposed of the property securing the loan. The veteran may obtain restoration of the entitlement used on the prior loan in order to purchase a different property, one time only.
So those are some of the basic scenarios and special cases where a home buyer or homeowner in Washington could use a VA loan more than once.
Learn More About This Program
We are passionate about the VA’s home loan program, because it rewards our brave men and women in uniform. So we’ve created a series of articles to help home buyers, homeowners and borrowers understand this unique program. You can learn more by reading any of the articles below:
What does it take to qualify for this government-backed mortgage program? Who is eligible to use a VA loan? And how do you get the process moving? You’ll find answers to these and related questions here.
Home buyers who use this program to buy a house in Washington could reduce their out-of-pocket costs in several ways.
Previously, VA loan limits – which typically mirrored conventional loan limits – gave borrowers a cap on how much they could borrow from a lender without putting forth a down payment. Usually, these limits would increase each year in response to rising home prices. But in 2020, these loan limits are no more. This article will give you all the details about this big change in Washington and the entire country in 2020.
Want to Apply For a Home Loan in Washington?
Sammamish Mortgage has been in the mortgage business since 1992, and have helped countless buyers secure the mortgage they need to buy a home throughout the Pacific Northwest, including Washington State, Colorado, Idaho, and Oregon. We are proud to offer several mortgage programs to borrowers, and are a family-run business that strives to help borrowers get the mortgage they need. Contact us today if you have questions about applying for a mortgage.