Yes, You CAN Buy a Second Home with a VA Loan — Here’s How!

by Skylar St. Pierre

Many veterans think that once they’ve used their VA loan to buy a home, they can’t use it again for a second property. The truth? VA loans are far more flexible. You can use your VA loan to buy another primary residence, even while renting out your first home. This benefit allows veterans to move, upgrade, or even start building a real estate portfolio. In this blog, we’ll show you how to use your VA loan to buy a second home and make the most of this powerful benefit.

The VA Loan Myth

Myth: You can only use your VA loan to buy one home, and once you’ve used it, you can’t use it again.
Fact: VA loans can be used multiple times, even to buy a second primary residence while renting out your first home.

How to Buy a Second Home with a VA Loan

Use Your VA Loan Entitlement

Why It Matters: If you’ve paid off your first VA loan or sold the home, you can restore your entitlement and use your VA loan benefits again.
How It Works: Submit an application to the VA to restore your entitlement, paving the way for your next home purchase.

Rent Out Your First Home

Why It Matters: VA loans allow veterans to rent out their first home while using a second VA loan for a new primary residence.
How It Works: This flexibility lets you turn your first home into an investment property.

Meet the Occupancy Requirement

Why It Matters: To use your VA loan for a second home, the new property must be your primary residence.
How It Works: Once you move into the new home, you can rent out your first home without penalty.

Common Scenarios for Using a VA Loan to Buy a Second Home

Upgrading to a Larger Home: If your current home no longer meets your needs, use your VA loan benefits to buy a bigger primary residence while renting out the first.
Relocating: Moving to a new area for work or personal reasons? Use your VA loan to buy a new primary residence, even if you haven’t sold your first home.
Building a Real Estate Portfolio: Many veterans use VA loans to grow their wealth by renting out their first home and buying additional properties.

Conclusion:
VA loans offer unmatched flexibility, allowing veterans to buy a second home while keeping their first property as an investment. Whether you’re upgrading, relocating, or building a real estate portfolio, VA loans can help you achieve your goals.