A VA loan can only be used to purchase a primary home. However, there are a couple of scenarios where you can buy a vacation home while still following the rules. As stated above, you can move to a new gas station with a new primary residence, but choose to keep your other home as a vacation destination. The companies that appear on this site compensate LendingTree and this compensation may affect how and where offers appear on this site (for example, ordering).
LendingTree doesn't include all lenders, savings products, or lending options available on the market. You can't use a VA loan to buy a second home, but you can use it for a second primary residence. In mortgage lending, the term “second home” generally refers to a vacation home, such as a beach getaway. You can't use a VA loan to buy this type of home.
In contrast, a “second primary residence” is a home where you spend more than six months in a year. To be eligible, you must have enough rights and income to qualify for both houses. Since you can only use a VA loan as your primary residence, you can't use a VA loan to buy a vacation home, unless you plan to spend most of the year there or plan to live in the home when you retire within the same year of purchase. However, an alternative solution is to use your old home as a vacation home and the new one as your primary residence.
In this case, you would need to be able to keep up with both mortgages. You can't use a VA loan to invest in a property, but you can convert your current home into a rental property and, at the same time, use a VA loan to buy a new primary residence. You can also use your VA loan to purchase a multi-unit property, as long as you intend to convert one of the units into your primary residence. This scenario allows you to rent the other units.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs (VA) exclusively for active-duty military service members, veterans, and eligible surviving spouses to purchase or refinance a home without a down payment or mortgage insurance. The VA does not lend money, but rather guarantees up to 25% of the loan; this guarantee is called entitlement. If you don't expect to sell the house, you can keep it and rent it for the time being. You can find the remaining information about your rights in your Certificate of Eligibility (COE).
You'll want to have your COE handy before you start calculating your entitlement to the bonus. The following is an example of what your certificate of eligibility looks like. You must know the “total entitlement charged” to previous VA loans to correctly calculate your entitlement to the bonus and the maximum loan amount to buy another home with your VA home loan benefit. It's important to know how to recover your entitlement benefit if you want to use a VA loan for a second home.
The restoration process is not automatic and must be initiated by the veteran. To be eligible to recover your right, you must have sold the home you bought with a VA loan and paid the mortgage, repaid your loan in full and still own the home, or another qualified veteran takes on your loan and replaces your right with yours. If one of these scenarios applies to you, you can request restoration by submitting Form 26-1880. Request for a certificate of eligibility to a VA regional processing center.
VA loans can be taken on, which means that someone who buys your home can take care of an excellent interest rate in addition to buying your home. The important thing to remember is that your right will not be restored unless the purchaser is an eligible veteran who agrees to replace their eligibility with yours. However, the VA doesn't restrict who can buy your home or take on your current VA mortgage. If you decide to sell a home to a non-military buyer, even if the buyer assumes responsibility for repaying the loan using an approved credit scenario, part of your VA right will remain immobilized in the property until the loan is repaid in full.
If you're an active duty service member, veteran, or eligible surviving spouse, you'll want to know how to get a VA loan. Learn what charges military borrowers must pay, as well as the costs that fall into the category of charges not allowed by the VA. The answer here is yes, but the home you buy should be the home you plan to use as your primary residence. .