Using VA Home Loan Entitlement
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
How do I know if my entitlement has been restored?
Many VA borrowers wonder about restoration of entitlement and how it's done. An eligible VA borrower can use his or her entitlement again and again as long as it is restored. Entitlement is restored after a VA home loan is paid in full. This can happen by:
- Owning a home long enough to have satisfied the mortgage
- Selling a home and using the proceeds from the sale to pay the VA loan in full
- Having the VA mortgage assumed by a buyer who substitutes his or her entitlement for the seller's
In most cases, the VA borrower must no longer own the property that was financed with the prior VA home loan. However, there is a one-time-only exception for VA borrowers to restore entitlement on a property that is retained but was financed with a VA loan that has been paid off. In any case, restoration of entitlement doesn't happen automatically. The veteran seeking restoration of entitlement must notify the VA with Form 26-1880.
A VA loan professional can help you better understand your own entitlement restoration -- all you have to do is ask.
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