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va homeloan eligibility restoration

Posted on: 18th Aug, 2010 04:50 pm
I bought a house in 1996 using my VA home loan benefits.
I sold the home in 1999 and the loan was paid in full
I just had my lender request my certificate of eligibility,
The lender sent me my certificate with an email saying that I need to contact the VA to get my VA Eligibility restored.
On the certificate of eligibility it shows VA Loan number, loan amount, date of loan, entitlement charged and status. The status is "Paid in Full/No Restoration. At the bottom is a note: This vetrans basic entitlement is $0 Total entitlement charged to previous va loan is $38,690.

Im confused. I didnt do a short sale on the old home, even made money on it. This makes it look like the VA had to pay something out? Can you please help me understand how I get my eligibility restored. I can find instruction on how to get the certificate, but I already have that.

Thanks
George
Hi George!

Welcome to forums!

You must be having the documents pertaining to sale of the property and payments made in full. You can contact the lender and show him the documents and state that you did not short sale the property. Rather, you paid off the dues in full.

You will have to pay off the remaining balance on your VA loan in order to get your VA eligibility restored. However, as you've paid off the dues, you should let your lender know about it.

Feel free to ask if you've further queries.

Sussane
Posted on: 18th Aug, 2010 09:21 pm
hi george,

this is straight from the va web site found here:
http://www.benefits.va.gov/homeloans/faqelig.asp

q: i have already obtained one va loan. can i get another one?

a: yes, your eligibility is reusable depending on the circumstances. normally, if you have paid 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 our winston-salem eligibility center. to prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. this evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the hud-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.
Posted on: 19th Aug, 2010 07:47 am
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