VA
Loan Eligibility
Question:
How do I apply for a VA guaranteed loan?
Answer:
You can apply for a VA loan at any mortgage company
that participates in the VA home loan program.
At some point, you will need to get a Certificate
of Eligibility from VA to prove to the mortgage
company that you are eligible for a VA loan.
Question:
How do I get a Certificate of Eligibility?
Answer:
To get a Certificate of Eligibility, you need
to submit form 26-1880, Request for Determination
of Eligibility and Available Loan Guaranty Entitlement.
A copy of the form can be obtained by calling
800-827-1000. Send it to any VA Regional Office.
You must include a copy of your DD214 with the
form 26-1880. If you are on active duty, you must
submit a statement of service signed by, or by
direction of, the adjutant, personnel officer,
or commander of your unit or higher headquarters
showing date of entry on your current active duty
period and the duration of any time lost.
Question:
I have already received one VA loan. Can I get
another one?
Answer:
Yes, depending on the circumstances. If you have
paid off your prior VA loan and disposed of the
property, you can have your entitlement restored
for additional use. To obtain restoration of entitlement,
you must send VA a completed VA Form 26-1880,
along with evidence that the property has been
disposed of and the loan repaid in full. This
evidence can be in the form of a pay-off statement
from the former mortgage company, or a copy of
the HUD-1 settlement statement completed in connection
with the sale of the property. The application
can be presented to any VA Regional Office. A
veteran can also obtain restoration of entitlement,
on a one-time basis, if the prior VA loan has
been paid in full but the property has not been
sold.
Question:
I have sold the property I obtained with my prior
VA loan on an assumption. Why can't I get my entitlement
restored to purchase a new home?
Answer:
In this case the your entitlement can be restored
only if the assumer is also an eligible veteran
who is willing to substitute his or her entitlement
for that of your original entitlement. Otherwise,
you cannot have entitlement restored until the
assumer has paid off the VA loan.
Question:
My prior VA loan was assumed, the assumer defaulted
on the loan, and VA paid a claim to the mortgage
company. VA said it wasn't my fault and waived
the debt. Now I need a new VA loan but am told
that I am not eligible. Why not? or My prior loan
was foreclosed on, or I gave a Deed in Lieu of
Foreclosure, or VA paid a compromise claim. I
was released from liability on the loan and/or
the debt was waived. Can I get another VA loan?
Answer:
Although the your debt was waived by VA, the Government
has still suffered a loss on the loan. The law
does not permit the your entitlement to be restored
until the loss has been repaid in full.
