VA Loan Second Home Use

The VA home loan program is intended to be used for a owner occupied residence.  The veteran borrower must certify that the loan purpose will be for their own residence or the residence of their spouse. A second home can be purchased if it provides a net tangible benefit to the borrower. The following are examples of a net tangible benefit:

-  Moving up to a larger home

-  Moving closer to work

-  Purchasing a home for your spouse (if your spouse lives out of state)

-  Purchasing a smaller home as a result of divorce or a substantial change of financial circumstance

Restrictions:

-  You cannot use your VA home loan guarantee for more than one outstanding loan at a time.

-  You or your spouse must intend to occupy the second home a minimum of 6 months of the year.

-  You may or may not be required to sell, transfer or convey the original home purchased using the VA home loan benefit. You are allowed an exclusion to have your benefit restored on a one time basis for a new VA loan.