This does not prevent you from obtaining a Veteran Mortgage; however there are a few differences. Depending on your situation your previous mortgage may need to be paid off before your eligibility can be restored.

If you intend to sell your home that you previously used your eligibility on, and buy your next home shortly afterwards, then it is recommended you use a lender with VA Specialists who can help you do a “rapid restore” of your eligibility in a short time frame. They will be able to set up the mortgage for your new home, and then once your previous home sells they will quickly restore your eligibility so you can obtain final approval and close on your new home.

If you need to move but are having trouble selling your current home that has a Department of Veterans Affairs Mortgage and have decided to rent it, you may still be able to use your benefits to buy a new home where you are moving.  Due to the current economic circumstances and associated challenges in selling a home, the Department of Veterans Affairs has recently made guideline changes that may allow you to buy your new home using Veteran benefits while you still have a guaranteed mortgage on your old home.  There are specific guidelines for this situation and you should contact a VA Specialist to review your specific situation and see if this may be an option for you.