Homeownership is everyone’s dream, and the VA loan program is one of the most substantial ways that veterans and active-duty service members alike can achieve it. One of the most underappreciated yet complex areas associated with a VA loan is how to restore entitlement. This can be further challenging in a state like Florida, with its unique real estate market.
The 2024 VA loan limit in Florida is $766,550 in most counties. This means eligible veterans can borrow that much, or less, with no down payment if they have full entitlement.
As such, this blog will serve to fully educate veterans on the restoration of VA loan entitlement in Florida, guiding them through the process and pointing out a few key considerations.
Get Familiar With Restoration Of Entitlement?
A borrower can have their entitlement “restored” one time to purchase another home with a VA loan if they have paid off the prior loan but still own the property.
This happens often when an active duty member gets transferred (PCS) to another location but plans to move back to their original home when they retire.
In cases, though, where the previous loan has already been paid, and the borrower no longer owns the property, entitlement may be reestablished numerous times so the borrower may use the available VA loan benefit for each succeeding home purchase.
When You Need VA Loan Entitlement Restoration?
Entitlement restoration is a process where a veteran mortgage Florida needs to regain full loan entitlement benefits after previously using part or all of his entitlement. Some of the circumstances under which restoration may be required include:
- Repayment of a Previous VA loan: If the loan was earlier fully paid and the property sold, entitlement can be restored.
- A veteran may refinance to get back their entitlement by refinancing the original loan with a non-VA loan and paying it off.
- Owning multiple properties: Veterans seeking to reuse their VA loan benefits but would like to retain the current property.
Follow These Steps to Restore VA Loan Entitlement
The entire process for the restorative course of entitlement to a VA loan for a veteran mortgage Florida has numerous steps. Here’s a step-by-step guide to help veterans walk through the process:
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Pay off the Loan Completely
The very first step to reestablish entitlement would be to pay off the prior VA loan. It can be done either from the proceeds of selling the property or through refinancing to another type of non-VA loan.
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Obtain Proof of Loan Payoff
Veterans must show proof that the loan is paid in full. Proof can include a paid-in-full statement from the VA home lender or a HUD-1 Settlement Statement if the property was sold.
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Complete VA Form 26-1880
VA Form 26-1880 Request for a Certificate of Eligibility must be completed and returned to the VA. This form will be used to request entitlement to be reinstated. Veterans mortgage florida can apply online through the VA’s eBenefits portal or by mailing this form in.
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Submit Supporting Documents
In addition to the VA Form 26-1880, accompanying supporting documents are required to include:
- Proof of loan payoff: As mentioned above, a statement from the VA mortgage lender Florida or a settlement statement
- Proof of service: DD Form 214 for Veterans or a statement of service for active duty members
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Wait for Processing
The VA will process the request. Once approved, a new Certificate of Eligibility (COE) will be issued reflecting the restored entitlement.
For personalized assistance, you can also search for “VA lenders near me” to find local experts who can guide you through this process.
Are VA loans Really Hard To Get Approval?
In general, it is much easier to get a government-backed VA loan approved than a conventional loan. Now, the reason is straightforward: the government’s guarantee over it cuts down the risk on the lender’s side. Hence more accommodation can be made toward the borrowers.
One of the strongest advantages of VA loans is that they can usually be obtained without a down payment. Plus, mortgage lenders usually impose significantly lower credit standards.
Even with a not-so-favorable credit score or a previous foreclosure, a borrower may still be able to secure a VA loan.
However, although the VA gives the guidelines, lenders themselves still have their respective qualification criteria.
Tips to Help You Through a Smooth Entitlement Restoration Process
The process of restoring VA loan entitlement can be pretty complicated, but with these tips, it shall all be smoother than anticipated.
- Work with Skilled Professionals
Their experience will significantly help. A real estate agent and a VA mortgage lender Florida who specializes in VA loans will give you a way forward in the restoration process and help you wade through the particular Florida market conditions.
- Stay Organized
Keep all documents related to your prior VA loan in good order, including payoff statements and settlement statements, easily accessible. It will make the process of submitting them much more accessible.
- Plan Ahead
Restoring entitlement may take some time. So plan, marks, especially if you are in a competitive real estate market. The earlier you start, the less likely you are to experience delays once you find your next home.
- Occupancy Requirements
A VA mortgage loan in Florida requires you to occupy the property as your primary residence. If you intend to keep your current residence as a rental property, be sure you meet the occupancy requirements and understand how that affects entitlement restoration.
- Be Patient
The VA loan entitlement restoration process occurs through a few steps and can take several weeks. Be patient and follow up with the VA as necessary to help ensure an outcome is successful.
Conclusion
Restoring the entitlement of a VA loan in Florida is very crucial for a veteran if he desires to continue to benefit from the program offered by this credit facility. Through knowledge of the process, knowledge of the required documents, and knowledgeable people to deal with, a veteran is well equipped to master the intricacies of entitlement restoration on the way to attaining his goals regarding homeownership in the Sunshine State.
The unique real estate market in Florida is high-priced and susceptible to natural disasters, so careful planning and decision-making will be put in place for the veterans to utilize their VA loan perks to the fullest extent and get the home of their dreams in Florida.