Understanding VA Loan Occupancy Requirements

VA loans are backed by the Department of Veterans Affairs and offer major advantages like zero down payment, competitive interest rates, and no private mortgage insurance (PMI). However, there’s a catch: these loans are strictly for primary residences. The VA requires borrowers to occupy the home as their primary residence within 60 days of closing.

What Counts as a Primary Residence?

• A home you live in most of the year.
• A property within a reasonable commuting distance from work.
• A home used as your legal residence for tax and mailing purposes.

What Doesn’t Count?

• A home you only use on weekends or vacations.
• A rental or investment property with no intention of living there full-time.
• A property used for Airbnb or short-term rentals.

“VA loans are meant to provide stable housing for veterans,” says James Keller, a VA mortgage specialist. “That means the home you buy with a VA loan needs to be where you actually live, not just a weekend getaway spot.”

Can You Ever Use a VA Loan for a Second Home?

While you can’t directly use a VA loan to buy a vacation home, there are ways to work within VA guidelines to own multiple properties with VA financing.

1. Use a VA Loan for a Primary Home, Then Convert It

If you’ve already purchased a home with a VA loan and later decide to buy another home to live in full-time, you may be able to convert your original VA-financed home into a vacation home. This works if:

• You have enough remaining entitlement to take out a second VA loan.
• You plan to move into the new home as your primary residence.
• You meet your lender’s requirements to rent out the first home (if applicable).

2. Refinancing with a VA IRRRL (Streamline Refinance)

If you already have a VA loan on a primary residence, refinancing it into a VA Interest Rate Reduction Refinance Loan (IRRRL) can free up funds for a vacation home purchase with a conventional loan.

“Many veterans don’t realize they can keep their VA loan on one home while using other financing for a second property,” explains loan officer Sarah Dean.

3. Using a VA Jumbo Loan for a More Expensive Property

Some veterans use a VA jumbo loan to buy a property in an area with higher home prices—sometimes allowing for dual-use properties where part of the home serves as a vacation retreat.

Comparing Loan Options for a Vacation Home

If a VA loan isn’t an option for your vacation home purchase, what other financing choices do you have?

VA Loan vs. Other Loan Types for Vacation Homes

Using VA Loan Entitlement for Multiple Homes

One way to finance both a primary residence and a vacation home is by carefully managing your VA loan entitlement. Here’s how it works:

VA Loan Entitlement & Buying Multiple Homes

If you haven’t used your full VA loan entitlement, you may be able to buy another home with a second VA loan, but it must still be your primary residence.

Tips for Veterans Looking to Buy a Vacation Home

Even if a VA loan isn’t the right financing tool for your vacation home, you still have options.

• Save for a down payment – A conventional loan will likely require at least 10% down for a second home.
• Improve your credit score – A higher credit score can get you better mortgage rates on a non-VA loan.
• Consider a home equity loan – If you already own a home, a home equity loan or HELOC could help fund a vacation home.
• Think about rental income – Some lenders allow you to count potential rental income to help qualify for financing.

“Veterans have many paths to homeownership,” says real estate expert Mark Collins. “A VA loan might not work for a vacation home, but with the right strategy, you can still achieve your goal.”

The Bottom Line

Frequently Asked Questions

Can you finance a second home with a VA loan?

No, VA loans are intended only for primary residences. However, if you have remaining entitlement, you might qualify for a second VA loan while keeping the first. The second home must still be a primary residence, meaning you plan to live there full-time. For vacation homes, you’ll need a conventional loan or other financing options.

Can you use your VA benefits for a second home?

Yes, but only if the second home becomes your new primary residence. VA loans cannot be used to purchase a vacation home or rental property. If you have remaining VA entitlement, you may qualify for a second VA loan under specific conditions, but you must meet occupancy requirements by living in the home.

Can I have two VA home loans at the same time?

Yes, in certain cases. If you haven’t used your full VA loan entitlement, you may qualify for a second VA loan while still keeping your first home. This is common when relocating to another duty station or upgrading to a new home while keeping the first as a rental. However, both properties must meet VA eligibility requirements.

Can you take out a second mortgage on a VA loan?

Yes, but with restrictions. A second mortgage on a VA loan requires lender approval and must comply with VA guidelines. Many lenders may not allow it unless the second loan is a home equity loan (HELOC) or VA cash-out refinance. This can be an option if you need additional funds for home improvements or expenses.

Can I use my VA loan to buy a house in another state?

Yes, but only if you plan to live in the home as your primary residence. VA loans do not restrict where you buy, but you must meet the occupancy requirement, typically moving in within 60 days of closing. If you’re relocating for work or military orders, you may qualify for exceptions to the occupancy rule.

How to get a second home loan?

If you’re buying a vacation home, you’ll need a conventional mortgage, jumbo loan, or home equity loan. Requirements typically include a good credit score (above 680), a down payment of 10-20%, and proof of stable income. If you have remaining VA entitlement, you might qualify for a second VA loan, but it must be a primary residence.