Can You Use Your VA Loan Benefit Again? Here’s How Restoration Works
Hello Hampton Roads,
Can You Use Your VA Loan Benefit Again? Here’s How Restoration Works
🏡 Intro: Using the VA Loan More Than Once
Can you really use your VA home loan benefit again?
Yes, you absolutely can—and many veterans and active-duty service members in Hampton Roads do it every year. Whether you’ve sold your previous home, refinanced, or are upgrading to a new place, there’s a path to restoring your VA loan entitlement so you can take advantage of zero down, no PMI, and competitive rates once more.
In this guide, we’ll break down how restoration works, when you can use it, and how to avoid common missteps—especially if you’re thinking about selling and buying again in the near future.
✅ Key Takeaways
- You can reuse your VA loan benefit as long as you have available entitlement or restore it.
- One-time and full restorations are available under different circumstances.
- Restoration is possible after a home is sold, refinanced, or assumed.
- Misusing your benefit before selling can delay your next purchase.
- Restoration isn't automatic—you need to submit a specific VA form.
📘 Understanding VA Loan Entitlement
VA entitlement is the amount the Department of Veterans Affairs guarantees on your VA home loan. It’s what gives lenders confidence to offer zero-down loans without private mortgage insurance.
There are two main types of entitlement:
🪖 1st-Tier Entitlement (Basic)
- Currently set at $36,000, which typically translates to a loan up to $144,000.
- In practice, most borrowers use bonus entitlement (see below) to purchase more expensive homes.
🪖 2nd-Tier Entitlement (Bonus)
- Allows you to exceed the basic loan limit—up to conforming loan limits (or higher with some lenders).
- Especially important if you’re reusing your VA benefit, already own a VA-financed home, or had a previous foreclosure.
In 2025, the conforming loan limit for most U.S. counties, including Hampton Roads, is $766,550. The VA typically guarantees 25% of this amount if you have full entitlement.
| Entitlement Type | Coverage | Max Loan Without Down Payment* |
|---|---|---|
| 1st-Tier (Basic) | $36,000 | ~$144,000 |
| 2nd-Tier (Bonus) | Up to 25% of conforming loan limits | $766,550 (Hampton Roads in 2025) |
*Max loan amounts vary if you have partial entitlement tied up or had a foreclosure. You may need a down payment to cover any shortfall in VA guarantee.
Want to check how much entitlement you have remaining? Your lender can help pull your Certificate of Eligibility (COE) and calculate your current entitlement status.
🔁 When and How Entitlement Can Be Restored
Restoring your VA loan entitlement means getting back the full or partial benefit you previously used, so you can purchase another home using your VA loan again.
You may be eligible for restoration when:
- You’ve sold the previous VA-financed home and the loan has been fully paid off.
- The previous VA loan was assumed by another qualified borrower.
- You’ve refinanced into a conventional loan and paid off the VA loan.
- You're using your one-time restoration benefit (see below).
| Scenario | Can You Restore Entitlement? | What You Need |
|---|---|---|
| Sold previous VA home | Yes | Evidence of sale + VA Form 26-1880 |
| Refinanced VA loan into conventional | Yes | Proof loan was paid in full |
| VA loan assumed by another buyer | Yes, if buyer substitutes entitlement | Substitution of entitlement paperwork |
| Still own the home, but want to buy again | Yes (one-time use) | Request one-time restoration |
♻️ One-Time Restoration Rules
If you’ve paid off your VA loan but haven’t sold the home, you may be eligible for a one-time restoration of your full entitlement. This allows you to purchase another property with a VA loan—even while keeping the first one.
⚠️ Important: You can only do this once unless the original property is sold and the loan paid in full afterward.
🔄 Restoration After Refinancing or Assumption
After Refinancing:
If you refinanced your VA loan into a conventional loan (common when rates drop), and the original VA-backed loan is paid off, you can apply for full restoration.
After a Loan Assumption:
If another buyer assumes your VA loan, you do not automatically get your entitlement back—unless they substitute their own entitlement. Without substitution, your benefit remains tied up until the loan is paid in full.
⚠️ Common Mistakes to Avoid
- Buying before selling—If your first home hasn’t sold, your entitlement may be tied up, limiting your ability to buy again.
- Assuming restoration is automatic—You must apply with VA Form 26-1880.
- Failing to plan the timing—Especially in a fast-moving market, the order of operations matters.
- Not working with a VA-savvy agent—This can lead to missed opportunities or delayed closings.
🧭 Real-Life Example Scenario
Meet Alex and Maria—a Navy family stationed in Norfolk. They bought a home in 2019 using their VA loan benefit. Now their family has grown and they’re ready for a bigger home in Virginia Beach.
Here’s how they used their VA benefit again:
- They listed their current home and made the sale contingent on finding a new property.
- Once under contract, they filed VA Form 26-1880 to request restoration of entitlement.
- Their lender confirmed entitlement was restored, and they closed on a new home with zero down just two weeks after selling.
💡 Pro Tip: Restoration doesn’t happen automatically at closing—it’s smart to get ahead of it.
📝 Quick Checklist: Using Your VA Loan Again
Here’s a simple step-by-step checklist to help you reuse your VA loan benefit without delays or surprises:
- ✅ Confirm your current entitlement status with your lender or through your COE.
- ✅ Decide if you need a full or one-time restoration based on your current property status.
- ✅ Submit VA Form 26-1880 along with necessary documentation (proof of sale, payoff, or refinance).
- ✅ Work with a VA-savvy real estate agent who understands restoration timing and financing options.
- ✅ Plan your buying and selling timeline carefully to avoid gaps or delays in entitlement restoration.
- ✅ Review updated funding fees and exemptions if applicable (e.g., disability rating).
💬 Tip: Don’t wait until you’ve found your next home—start restoration paperwork early to streamline your purchase.
❓ FAQs About Reusing Your VA Loan Benefit
1. What are the differences in funding fee I have to pay in using my VA loan more than once?
If you're using your VA loan for the first time, the typical funding fee is 2.15%. When using your VA loan again, it increases to 3.3% unless you’re exempt. A down payment of 5% or more can reduce the fee.
2. Do I need to sell my current VA home to restore entitlement?
Usually, yes. But if the VA loan is paid off and you haven’t sold, you can request a one-time restoration.
3. What is the difference between 1st-tier and 2nd-tier entitlement?
1st-tier (basic) entitlement is $36,000 and typically covers homes up to $144,000. 2nd-tier (bonus) entitlement allows qualified borrowers to finance homes above that—up to $766,550 in Hampton Roads—with no down payment, assuming full entitlement is available.
4. Can I keep my first home as a rental and use my VA loan again?
Only if you qualify for a one-time restoration or have remaining entitlement. Most buyers don’t have enough entitlement left to do this without restoring.
5. Where do I apply for entitlement restoration?
Submit VA Form 26-1880 along with documentation to the VA or your lender. Most lenders will assist you with this step.
🔗 Related Reading
👉 🎖️Who Qualifies for a VA Home Loan? A Guide for Veterans and Spouses🏡
🏁 Summary and Final Thoughts
Yes—you can reuse your VA loan benefit, and many veterans in Hampton Roads do just that to upsize, downsize, or relocate. Whether you’re selling a home, refinancing, or planning your next move, understanding how restoration works gives you the power to move forward with confidence.
Don’t leave your benefit unused or get stuck in paperwork limbo. Let’s make your next move seamless and strategic.
Whether you're buying, selling, or planning ahead—schedule a free, no-pressure consultation to discuss your real estate plans and options.
👉 Book your call here
Thanks for Reading,
_________________________
🏡 Thinking of Selling? Don’t Go In Blind.
The market’s changing fast—and what worked last year might cost you this year. Want to sell with confidence (and less stress)? Start with the right info.
👇 Download your copy now and take the first step toward a smarter home sale.https://eguide.hamptonroadshomes.us/sellers-guide
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