VA Loans and the Second Home | Real Living Real Estate

The Bottom Line on
VA Loans and
Second Homes

 You cannot use a VA loan to buy a summer house. It has to be your primary residence.

To qualify, you must occupy the home for at least six months.

If you are away from your second home for extended periods, say on business, the VA will look at your situation on a case by case basis. Under some circumstances, it can be flexible.

Did You Know?

You can use a VA loan guarantee more than once.





Some veterans buy their first home with a VA mortgage only to outgrow it in a few years - especially if they have started a family.  You should know that it is possible for you to use your VA loan benefits to buy a second home to suit your growing needs.

There are a few important criteria you need to meet in order to do this: Your original VA loan must be paid off and you must live in the second home at least six months a year or more in order for it to be considered your primary residence - a requirement.

Although it is typical that you have to dispose of the property bought with the first VA loan, eligibility can be restored on a one-time basis for a new VA loan while you still own the real estate from the original loan.

No Money Down
The good news is that you can use a VA loan guarantee more than once. You are free to pursue a new VA loan once the original loan is fully paid off or another eligible veteran can assume your active loan and trade their available eligibility for you.

There are significant advantages to VA loans versus traditional loans. A VA loan mortgage is guaranteed with no money down for up to $417,000. Even if the loan-to-value ratio is 100%, no monthly mortgage insurance is required. The required funding fee for second VA loans is still quite reasonable even though it is a little higher than for a first-time loan. Members of the regular military pay a 3.3% fee with no down payment. Up to a 10% down payment requires a 1.75% fee and more than 10% down requires a 1.5% fee. Reserve and National Guard veterans pay an additional 0.25% for second VA loans with a down payment.

If you qualify, a second VA loan is a great way to finance your second home purchase.