VA Loan Reader Questions: Restoration of VA Loan EntitlementA reader asks, “I’ve paid off my VA loan. How long does it take to get my entitlement restored so I can buy a new home?”
VA loan entitlement restoration is not automatic–it must be applied for as per the VA official site at VA.gov. According to the official site, “Veterans can have previously-used entitlement “restored” to purchase another home with a VA loan if:
- The property purchased with the prior VA loan has been sold and the loan paid in full, or
- A qualified Veteran-transferee (buyer) agrees to assume the VA loan and substitute his or her entitlement for the same amount of entitlement originally used by the Veteran seller. The entitlement may also be restored one time only if the Veteran has repaid the prior VA loan in full, but has not disposed of the property purchased with the prior VA loan.”
Borrowers who wish to have their entitlement restored can make the request through the VA Eligibility Center. This requires the borrower to fill out and submit VA Form 26-1880.
You’ll need proof that the original VA home loan was paid in full, the home was sold or other applicable documentation. Borrowers will also have to provide information about the branch of military service, dates of service, service number and other relevant information.
If you cannot locate the documentation of your loan payoff, home sale or other related (and required) paperwork, contact your lender for assistance. The VA will not be able to retrieve this documentation for you. When submitting, don’t send originals–you may need that paperwork again at some point.
The reader’s question about how long it takes to get entitlement restored? The answer depends on the VA workload, how the request for entitlement restoration is submitted, and whether or not the request was completed properly. There’s no set time frame for processing, but borrowers should apply for restoration as early as possible in the process for best results.
Do you have questions about VA home loans? Ask us in the comments section.