Eligibility Frequently Asked Questions
Questions about who is eligible
for a VA loan and reuse of eligibility for another VA loan.
Q: How do I apply for a VA
guaranteed loan?
A: You can apply for a VA
loan with any mortgage lender that participates in the VA home
loan program. At some point, you will need to get a Certificate
of Eligibility from VA to prove to the lender that you are
eligible for a VA loan.
Q: How do I get a Certificate of
Eligibility?
A. Complete an 1880:
You can apply for a Certificate of Eligibility by submitting a
completed
VA Form 26-1880, Request For A Certificate of
Eligibility For Home Loan Benefits, to one of the
VA Eligibility Centers, along with proof of
military service. In some cases it may be possible for VA to
establish eligibility without your proof of service. However, to
avoid any possible delays, it's best to provide such evidence.
Q: Can my lender get my
Certificate of Eligibility for me?
A.
Yes, it's
called ACE (automated certificate of eligibility). Most
lenders have access to the ACE (automated certificate of
eligibility) system. This Internet based application can
establish eligibility and issue an online Certificate of
Eligibility in a matter of seconds. Not all cases can be
processed through ACE - only those for which VA has sufficient
data in our records. However, veterans are encouraged to ask
their lenders about this method of obtaining a certificate.
Q: What is acceptable proof of
military service?
A: If you are still
serving on regular active duty, you must include an original
statement of service signed by, or by direction of, the
adjutant, personnel officer, or commander of your unit or higher
headquarters which identifies you and your social security
number, and provides your date of entry on your current
active duty period and the duration of any time lost.
If you were discharged from
regular active duty after January 1, 1950, a copy of DD Form
214, Certificate of Release or Discharge From Active Duty should
be included with your VA Form 26-1880. If you were discharged
after October 1, 1979, DD Form 214 copy 4 should be included.
A PHOTOCOPY OF DD214 WILL
SUFFICE.....DO NOT SUBMIT AN ORIGINAL DOCUMENT.
If you are still serving on
regular active duty, you must include an original
statement of service signed by, or by direction of, the
adjutant, personnel officer, or commander of your unit or higher
headquarters which shows your date of entry on your current
active duty period and the duration of any time lost.
If you were discharged from the
Selected Reserves or the National Guard, you must include
copies of adequate documentation of at least 6 years of
honorable service. If you were discharged from the Army or Air
Force National Guard, you may submit NGB Form 22, Report of
Separation and Record of Service, or NGB Form 23, Retirement
Points Accounting, or it’s equivalent. If you were discharged
from the Selected Reserve, you may submit a copy of your latest
annual points statement and evidence of honorable service.
Unfortunately, there is no single form used by the Reserves or
National Guard similar to the DD Form 214. It is your
responsibility to furnish adequate documentation of at least 6
years of honorable service.
If you are still serving in the
Selected Reserves or the National Guard, you must include
an original statement of service signed by, or by the direction
of, the adjutant, personnel officer, or commander of your unit
or higher headquarters showing the length of time that you have
been a member of the Selected Reserves. Again, at least 6
years of honorable service must be documented.
Q: How can I obtain proof of
military service?
A:
Standard Form 180, Request Pertaining to Military Records,
is used to apply for proof of military service regardless of
whether you served on regular active duty or in the selected
reserves. This request form is NOT processed by VA. Rather,
Standard Form 180 is completed and mailed to the appropriate
custodian of military service records. Instructions are provided
on the reverse of the form to assist in determining the correct
forwarding address.
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 VA a completed
VA Form 26-1880 to one of our
VA Eligibility Centers. 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.
Q: I sold the property I
obtained with my prior VA loan on an assumption. Can I get my
eligibility restored to use for a new loan?
A: In this case the
veteran’s eligibility can be restored only if the qualified
assumer is also an eligible veteran who is willing to substitute
his or her available eligibility for that of the original
veteran. Otherwise, the original veteran cannot have eligibility
restored until the assumer has paid off the VA loan.
Q: My prior VA loan was assumed,
the assumer defaulted on the loan, and VA paid a claim to the
lender. VA said it wasn’t my fault and waived the debt. Now I need a
new VA loan but I am told that my used eligibility can not be
restored. Why?
Or,
Q: My prior loan was foreclosed
on, or I gave a deed in lieu of foreclosure, or the VA paid a
compromise (partial) claim. Although I was released from liability
on the loan and/or the debt was waived, I am told that I cannot have
my used eligibility restored. Why?
A: In either case,
although the veteran’s debt was waived by VA, the Government
still suffered a loss on the loan. The law does not permit the
used portion of the veteran’s eligibility to be restored until
the loss has been repaid in full.
Q: Only a portion of my
eligibility is available at this time because my prior loan has not
been paid in full even though I don’t own the property anymore. Can
I still obtain a VA guaranteed home loan?
A: Yes, depending on the
circumstances. If a veteran has already used a portion of his or
her eligibility and the used portion cannot yet be restored, any
partial remaining eligibility would be available for use. The
veteran would have to discuss with a lender whether the
remaining balance would be sufficient for the loan amount sought
and whether any down payment would be required.
Q: Is the surviving spouse of a
deceased veteran eligible for the home loan benefit?
A: The unmarried surviving
spouse of a veteran who died on active duty or as
the result of a service-connected disability is eligible
for the home loan benefit. If you wish to make application for
the home loan benefit as a surviving spouse, contact one of our
VA Eligibility Centers. In addition, a surviving
spouse who obtained a VA home loan with the veteran prior to his
or her death (regardless of the cause of death), may obtain a VA
guaranteed interest rate reduction refinance loan. For more
information, contact one of our
VA Eligibility Centers.
[NOTE: Also, a surviving spouse who remarries on or after
attaining age 57, and on or after December 16, 2003, may be
eligible for the home loan benefit.
However, a
surviving spouse who remarried before December 16, 2003, and on
or after attaining age 57, must apply no later than December 15,
2004, to establish home loan eligibility. VA must deny
applications from surviving spouses who remarried before
December 16, 2003 that are received after December 15, 2004.]
Q: Are the
children of a living or deceased veteran eligible for the home loan
benefit?
A:
No, the children of an eligible veteran are not eligible for the
home loan benefit.
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Q: How much can I borrow?