Posted by Dave T on April 27, 1999 at 23:12:01:
If you have used all or part of your entitlement, you can get that entitlement back to purchase another home if the following conditions for “restoration” are met:
- The property has been sold and the 1oan has been paid in full, or
- A qualified veteran-transferee (buyer) must agree to assume the outstanding balance on the 1oan and agree to “substitute” his or her entitlement for the same amount of entitlement you originally used to get the loan. The buyer must also meet the occupancy and income and credit requirements of the law.
- ONE TIME ONLY if you have repaid the prior VA loan in full, but have not disposed of the property securing that loan, the entitlement you used in connection with that loan may be restored.
Restoration of entitlement is not automatic. You must apply for it by completing and returning VA Form 26-1880 to any VA regional office or center. Application forms for substitution of entitlement may he requested from the VA office that guaranteed the loan.