If you used your VA loan benefit before, you may be able to get that entitlement back and use it again at full strength. The VA gives you three ways to do it. Which one fits depends on whether you sold the home, kept it or handed the loan to someone else. This guide walks through each path, the form to file and the cases where restoration is blocked.
What does it mean to restore VA entitlement?
Restoring entitlement means the VA gives back the entitlement you used on an earlier VA loan, so it counts as available again. The VA's Buyer's Guide says that once your full entitlement is restored, you can buy a new home, and the VA puts no cap on the loan amount it will guarantee and requires no down payment, though you still have to qualify with a lender.
Without restoration, you may still have remaining entitlement. That is a smaller amount, and the county loan limit then affects how much the VA guarantees. Our guide to the San Diego VA loan limit shows how that math works.
What are the three ways to restore VA entitlement?
You can sell the home and repay the loan, have an eligible veteran assume it and substitute their entitlement, or repay it in full and keep the home, once. The VA's Buyer's Guide says you can apply to restore your previously used entitlement if at least one of these is true:
- You sold the home and repaid the loan in full. This is the usual route. The VA's eligibility FAQ says that normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored.
- Another eligible veteran assumes your loan and substitutes their entitlement. The buyer takes over the payments and uses their own entitlement in place of yours.
- You repaid the loan in full but still own the home. This is a one-time option.
If you are still deciding whether to use the benefit, read our VA loan pros and cons.
How does the one-time restoration work?
The one-time restoration lets you reuse your benefit while keeping the first home. The VA's eligibility FAQ says that 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.
Two points to know:
- The loan has to be paid in full. Being current on the payments is not enough.
- It is one time. VA Form 26-1880 says that once you have used your one-time restoration, you must sell all homes before any other entitlement can be restored.
If your VA loan was paid off by a refinance, the VA accepts the refinance settlement statement as proof of payoff, and Form 26-1880 has separate restoration boxes for each kind of refinance. If you refinance into another VA loan, the new loan uses entitlement. Ask the VA or your lender how your refinance will be treated before you rely on it, and get the answer in writing.
What is substitution of entitlement?
Substitution is when another eligible veteran takes over your VA loan and uses their own entitlement for the same amount you used. The VA's eligibility FAQ says your entitlement can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute their available entitlement for yours. Otherwise, you cannot have it restored until the assumer has paid off the loan.
According to the VA's Buyer's Guide:
- The buyer needs a certificate of eligibility or a completed VA Form 26-1880, and must have enough entitlement to substitute for yours.
- The buyer signs VA Form 26-8106, Statement of Veteran Assuming GI Loan, and certifies that the property will be their home.
- Assumption needs servicer approval, and in some cases VA approval.
- Anyone, even a non-veteran, can assume the loan. In that case your entitlement stays with the loan.
The guide also warns you to be selective about who assumes your loan. If there is a default on an assumed loan, it counts against your entitlement and may affect your chance of getting another VA loan.
What if the VA paid a claim on my loan?
If the VA paid a claim after a foreclosure, a deed in lieu of foreclosure or a compromise (partial) claim, your used entitlement is not restored until the VA's loss is repaid. The VA's eligibility FAQ says that although the debt was waived, the government still suffered a loss, and the law does not permit the used portion of your eligibility to be restored until the loss has been repaid in full. Any partial remaining entitlement would be available for use.
The Buyer's Guide adds that this applies even when the loan was assumed by someone else, and that either you or the person who assumed the loan can repay the claim amount. The VA's page does not say how to make the repayment or what the amount is, so contact your regional loan center for the figure.
How do I apply to restore my entitlement?
The Buyer's Guide says you can request restoration in one of two ways: apply online at VA.gov, or download VA Form 26-1880, the Request for a Certificate of Eligibility, and send it to the VA. The current form says to mail it to the VA regional loan center for your state, listed on page 4 of the form. For California, that is the Phoenix Regional Loan Center.
- Gather proof of payoff. VA Form 26-1880 lists a paid-in-full statement from the former lender, a satisfaction of mortgage from the county clerk, or a HUD-1 or Closing Disclosure from the sale or refinance.
- Complete VA Form 26-1880, or start the request online.
- Send the form and proof, or submit them online.
- Get your new certificate of eligibility. It shows the entitlement you have available.
The VA's pages do not give processing times or fees. A lender can often pull your certificate of eligibility for you, which is a quick way to see what you have today.
Do I need to restore entitlement to buy again?
Not always. If you used the benefit and want to buy another home without selling the first one, you may have remaining entitlement instead. The Buyer's Guide says you can still buy at any loan amount, but the VA can only guarantee the amount your remaining entitlement covers. To find it, request an updated certificate of eligibility, then take 25 percent of the county's one-unit conforming loan limit and subtract the entitlement you already used.
The Buyer's Guide also says you must be able to afford all your VA loans at the same time and the new home must become your residence. A down payment may be needed above what your entitlement supports.
Compare both routes before you choose. With restoration, you have the full benefit again. Without it, you can buy sooner but may need cash. Our VA loan pros and cons guide and the VA loan payment calculator can help you weigh it.
Who can check my VA entitlement?
We can usually pull your certificate of eligibility for you, tell you what entitlement you have and whether restoration makes sense before you shop. To see VA numbers for your state, start on our VA loans page. Start your pre-approval or call us at (888) 957-8387. If you want to know who you would be working with, read about Renaldo Wilson.
