source:
  type: guide
  id: va-m26-7-ch02-t06
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 6 — Restoration
    of Previously Used Entitlement
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 6 — Restoration
    of Previously Used Entitlement.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch02-t06-full
  canonical_id: va-m26-7-ch02-t06-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 6 — Restoration
    of Previously Used Entitlement
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 6 — Restoration
      of Previously Used Entitlement
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 488cf6b152dfffb7
    fetched_at: '2026-05-23T01:53:52Z'
    content_hash: sha256:b9f2259ef4bf182c8700374d01f483bbad8bde952afea193cdbca84386d635e6
    paragraph_quote: '6. Restoration of Previously Used Entitlement a. Basic Restoration
      Entitlement previously used in connection with a VA home loan may be restored
      under certain circumstances. Once restored, it can be used again for another
      VA loan. Restoration of previously used entitlement is possible if: • property
      which secured the VA-guaranteed loan has been sold, and the loan has been paid
      in full; or • eligible Veteran-transferee has agreed to assume the outstanding
      balance on a VA loan and substitute his or her entitlement for the same amount
      originally used on the loan. The assuming Veteran, substituting his/her entitlement,
      must also meet occupancy, income, and credit requirements. This should be completed
      before requesting the Loan Guaranty Certificate in WebLGY, on the new loan.
      b. Special Restoration Cases In addition to the basic restoration criteria outlined
      above, a Veteran may obtain restoration of the entitlement used on a prior VA
      loan under any of the following circumstances: • Regular “cash-out” refinance
      where the prior VA loan has been paid in full and the Veteran has made application
      for a refinance loan to be secured by the same property which secured the prior
      VA loan. This includes refinancing situations, in which the prior loan will
      be paid off at closing from a VA refinancing loan on the same property, or •
      One –time restoration where the prior VA loan has been paid in full, but the
      Veteran has not disposed of the property securing the loan. The Veteran may
      obtain restoration of the entitlement used on the prior loan in order to purchase
      a different property, one time only. Once such restoration is used, the Veteran’s
      COE will indicate the one-time restoration. The COE will also advise that any
      future restoration (purchase or cash-out refinance) will require disposal of
      all property or properties obtained with a VA loan. Example. A Veteran used
      all his entitlement to purchase a home for $453,100 in a non-high cost county
      in Maryland. Prior to job relocation to GA, he refinanced the loan to a non-VA
      loan. The loan was paid in full; however, he still owned the property. He now
      wants to purchase a home in GA and applies for a one-time restoration. This
      is possible. If the Veteran wants to use the benefit in the future for another
      purchase or regular “cash- out” refinancing, both properties would have to be
      disposed of before entitlement can be restored. VA Pamphlet 26-7, Revised Chapter
      2: Veteran’s Eligibility and Entitlement 2-19'
  judgment: false
