How do I
apply for a guaranteed VA home loan?
You can apply
for a VA loan at any mortgage
company that participates in the VA home loan program. At some
point, you will need to get a Certificate of Eligibility from VA
(Veteran's Administartion) to
prove to the mortgage company that you are eligible for a VA loan.
How do I get
a Certificate of Eligibility for my VA home loan?
To get a Certificate
of Eligibility, you need to submit Form 26-1880, "Request for Determination
of Eligibility and Available Loan Guaranty Entitlement." A copy
of the form can be obtained by calling 800-827-1000. Send it to
any VA Regional Office. You must include a copy of your DD214 with
Form 26-1880. If you are on active duty, you must submit a Statement
of Service signed by, or by direction of, the adjutant, personnel
officer, or commander of your unit or higher headquarters showing
date of entry on your current active duty period and the duration
of any time lost.
I have already
received one VA home loan. Can I get another one?
Yes, depending
on the circumstances. If you have paid off your prior VA loan and
disposed of the property, you can have your entitlement restored
for additional use. To obtain restoration of entitlement, you must
send VA a completed VA Form 26-1880, along with evidence that the
property has been disposed of and the VA home loan repaid in full.
This evidence can be in the form of a pay-off statement from the
former mortgage company, or a copy of the HUD-1 settlement statement
completed in connection with the sale of the property. The application
can be presented to any VA Regional Office. A veteran can also obtain
restoration of entitlement, on a one-time basis, if the prior VA
home loan has been paid in full but the property has not been sold.
I have sold
the property I obtained with my prior VA loan on an assumption.
Why can't I get my entitlement restored to purchase a new home?
In this case,
your entitlement can be restored only if the assumer is also an
eligible veteran, who is willing to substitute his or her entitlement
for that of your original entitlement. Otherwise, you cannot have
entitlement restored until the assumer has paid off the VA home
loan.
My prior VA
home loan was assumed, the assumer defaulted on the loan, and VA
paid a claim to the mortgage company. VA said it wasn't my fault
and waived the debt. Now I need a new VA home loan but am told that
I am not eligible. Why not?
or
My prior loan
was foreclosed on, or I gave a Deed in Lieu of Foreclosure, or VA
paid a compromise claim. I was released from liability on the loan
and/or the debt was waived. Can I get another VA home loan?
Although your
debt was waived by VA, the Government has still suffered a loss
on the loan. The law does not permit the your entitlement to be
restored until the loss has been repaid in full.
Nathan Toler
is Vice-President of Internet Operations for Sharp Mortgage Group,
a zero-down home mortgage specialist. Click here for more about
VA home loans and VA
mortgage refinances. |
