Used Eligibility Once VA Mortgage Loan

People moving to Ft. Bragg, in Fayetteville NC might be moving here with little or no equity.  Did you know that even if you’ve used your VA eligibility before, you can use it more than once… under certain circumstances.

You need to either:

• pay off your prior VA loan
• and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send a completed VA Form 26-1880 to the local VA Center.  In NC the Eligibility Center is in Winston Salem.  We suggest that Veterans include evidence that the previous loan is paid in full with a notice from the bank, and a copy of your HUD-1 Settlement Statement.  Including this information will speed up the process, and you will avoid delays.

If you allowed the folks who purchased your home to assume your VA loan, you can still get the Eligibility Reinstated, if the person who assumed the loan is also an eligible veteran who is willing to substitute his or her available eligibility for yours.  Otherwise,  the Veteran cannot have eligibility restored until the assumer has paid off the VA loan.

If you allowed someone to assume the VA Home Loan, and they defaulted, or the Federal government lost money AT ALL, you will not have your VA Eligibility restored. Even if it’s not your fault, and the VA does not hold you responsible.  Additionally, if you short sold your home, or did a deed in lieu, the VA will not reinstate your Eligibility. Although you might be released from liability on the loan and/or the debt was waived, the VA will not restore the Eligibility.

The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.

If you are considering a home purchase in NC, and have questions about your Eligibility – please call Steve Thorne 919-649-5057, NC’s VA Mortgage Expert! Remember, Veteran’s who have been deployed still qualify for the $8000 Tax Credit!  If you want to know VA Home Loan Qualifying basics, click here.