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Qualifying for Another VA Loan

Many borrowers may think that once they have used their eligibility for their first VA loan that they are no longer eligible for VA loans in the future. This is not the case; it is important for qualified individuals to understand that there are circumstances in which they can qualify for a VA loan even after they have obtained their original loan.

One circumstance in which an eligible veteran may qualify for an additional VA loan is if they have paid off their previous VA loan and disposed of the property for which the loan was obtained. In this case, the veteran should receive full eligibility on another loan. Veterans will, however, need to present proof that their VA loan has been paid in full, as well as proof that they disposed of the property.

Also, a veteran may qualify for an additional loan if they have paid off their previous loan in full, but still own the property. However, this can be done one time only. Veterans wishing to restore their eligibility for a second VA loan should contact the Department of Veteran Affairs and complete the appropriate form, VA Form 26-1880. Upon completion of the form, veterans may also be asked to present proof that their previous VA loan was paid in full.

Another circumstance in which veterans can restore their eligibility is if they sell their home and have the VA loan assumed. If the purchaser of the home is also a qualified veteran and willing to assume the loan and substitute their eligibility in place of the original homeowner, then the original homeowner will have restored eligibility. If the purchaser does not assume the loan and substitute their eligibility, the original homeowner can still restore their eligibility for another VA loan, but only after the purchaser pays off the loan.

Back to the Veterans' Loan Handbook Table of Contents.