VA Second-Tier Entitlement: How to Buy Again Without Selling Your First Home

Last updated: October 2025

Quick Answer

You can use your VA loan benefit a second time without selling your current home by tapping into your second-tier entitlement. This allows eligible veterans and active-duty service members to retain one VA-financed property and purchase another, often during PCS moves or family expansions. Your remaining entitlement is calculated in accordance with VA guidelines and local county loan limits.

Get a personalized VA loan quote here.

What is VA second-tier entitlement?

VA second-tier entitlement, also called bonus entitlement, allows you to use your VA loan benefit again even if you haven’t sold your current VA-financed property.

This option exists for veterans or service members who:

• Have already used part of their VA loan entitlement
• Still own a home purchased with a VA loan
• Plan to occupy a new home as their primary residence

The VA does not offer “second homes” in the traditional sense, but it allows a second VA loan under certain conditions.

When to use a second-tier entitlement

Using second-tier entitlement makes sense when life circumstances change, but you don’t want to—or can’t—sell your first property.

Common scenarios include:

• PCS relocation to a new duty station
• Outgrowing your current home
• Turning your first home into a rental
• Moving closer to family or care providers

You must intend to occupy the new home as your primary residence. However, the VA allows reasonable timelines and exceptions for service-connected relocations.

How second-tier entitlement works

When you use your VA loan for the first time, a portion of your basic entitlement is tied up in that property. Second-tier entitlement allows you to access the remainder.

VA entitlement basics:

• Basic entitlement: $36,000
• Full VA entitlement: up to 25% of conforming loan limits (typically $806,500 in most counties for 2025)
• Entitlement is not dollar-for-dollar; it’s tied to 25% of the loan amount

If your first home loan used $100,000 of entitlement and your new county limit is $806,500, you still have $101,625of remaining entitlement (25% of the difference). This can support another VA loan without needing to sell your first home.

VA Loan Limits and Second-Tier Eligibility (2025)

Loan limits vary by county and directly affect how much entitlement you have left for a second VA loan.

Example scenario (2025 standard county):

• County loan limit: $806,500
• Maximum entitlement (25% of limit): $201,625
• First VA loan: $300,000
• Entitlement used: $75,000 (25% of $300,000)
• Remaining entitlement: $126,625 ($201,625 − $75,000)

In this example, you could buy another home for up to $506,500 ($126,625 × 4) with no down payment. If the new home exceeds this amount, a down payment may be required equal to 25% of the difference between the purchase price and $506,500.

Required documentation for second-tier VA loans

To qualify for a second VA loan, lenders will review your eligibility and financials again.

You’ll need to provide:

• Updated Certificate of Eligibility (COE)
• Leave and Earnings Statement (LES) or pay stubs
• Mortgage statement for your current VA loan
• Intent-to-occupy certification for the new property
• Proof of PCS orders (if applicable)

Taking these steps is part of preparing financially for a home purchase.

Salute Mortgage can help you calculate how much entitlement you have left and whether your new property qualifies.

Do you need to restore entitlement first?

No, you don’t have to restore full entitlement to use your benefit again. That’s the purpose of second-tier entitlement.

However, if you sell your original VA-financed home or refinance it into a non-VA loan, you can request full restoration. This is useful if you no longer want two VA loans or are preparing for another purchase in the future.

VA loan occupancy and second-tier rules

Second-tier entitlement still follows the VA’s occupancy requirement. You must intend to live in the new home as your primary residence within a reasonable time; usually, within 60 days of closing.

Acceptable flexibility includes:

• Spousal occupancy
• Delayed occupancy due to PCS timelines
• Certification of intent with documented orders or relocation plan

VA loans are not intended for vacation homes or investment-only properties unless you convert a former primary residence after moving.

Is there a second funding fee?

Yes. If you use your VA loan benefit a second time without restoring entitlement, the VA funding fee is higher.

VA funding fee (as of 2025):

• First-time use: 2.15% of the loan amount
• Subsequent use: 3.3% (if no down payment is made)
• Exemptions apply: Veterans with service-connected disabilities or active-duty recipients of the Purple Heart are typically exempt

The funding fee can be rolled into your loan balance.

Can you rent out your first VA-financed home?

Yes. The VA allows you to convert your original primary residence into a rental, as long as you meet occupancy requirements when you bought it.

Common examples include:

• Using your PCS move to justify relocation
• Listing the home for rent through a property manager
• Retaining the home as a long-term investment property

Renting out the first home does not automatically disqualify you from a second VA loan.

Ready to use your VA benefit again?

VA second-tier entitlement gives you the flexibility to move forward without leaving benefits behind. Whether you’re relocating for a PCS, growing your family, or investing in your next chapter, you can often buy again—without selling your current VA home.

Work with a lender that understands entitlement stacking. Salute Mortgage specializes in helping veterans and service members make confident, compliant decisions about their home financing future.

Ready to buy again with your VA loan—even if you haven’t sold yet? We’ll calculate your remaining benefits, confirm your eligibility, and help you close with confidence—anywhere your next move takes you. Get a personalized VA loan quote now.