Q: I used my VA home loan eligibility already. Can I use it again?
A: There are three ways you can restore your VA eligibility so that you can take advantage of it more than once:
- Sell your home and repay the VA-backed loan in full. This restores the value of your certificate.
- Find another veteran who will buy your home, can assume your VA-backed mortgage and can transfer his or her eligibility into the loan, freeing up yours again.
- Pay your VA-backed mortgage in full. You can retain your home, and your certificate is restored. This is a one-time only option, though.
Remaining entitlement and restoration of entitlement can be requested through the VA Eligibility Center by completing VA Form 26-1880.
Once the loan has been paid in full, there are no restrictions on the use of the paid-off property -- it can be turned into a rental property or second home, for example. However, the new property purchased with the VA-backed loan has to meet occupancy and other requirements.
For details, you will need to read VA Pamphlet 26-7, Chapter 3, Section 5, titled, "The Law On Occupancy," which can answer any additional questions.