I currently have a VA loan on a house. Can I sell my house and use that same VA entitlement for another house?

Question

If so what are the steps involved?

Answer 1

We're in the middle of doing this right now. The biggest thing is that you will have to close the sale of your current home before you can actually buy the new home. You will also need an original Certificate of Eligibility from the VA. You have to fill out a form and mail it to the VA, along with either a statement of service or your DD-214 (they told me it would take 3-5 days once they received it). Sometimes the lender on your new home can retrieve this online, but ours was unable to because of the fact that we are currently using my husband's VA entitlement. After you receive that paper, you will need to take it to the closing of the new home, along with settlement papers from the sale of your old home (to prove that you are free and clear on the first loan).

The whole process is a little complicated, but it's easier than I thought it would be. We used USAA for our new mortgage and they are used to dealing with the VA so they were able to tell me what to do. Also, if you live in a military area the realtors will be used to your situation and they can help out.

Answer 2

Yes you can, just as long as the person who bought your home used a new loan and did not just assume your VA mortgage, never let anyone assume your VA mortgage. Assume it and lose it is a proper term in those circumstances.

You will be able to aquire a new certificate of elegibillity once your home closes and the old VA loan has been paid off. The VA website has more information on this, you can call them and get specific information as well.

Answer 3

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. For more details, see the attached VA loan link.