Sell your home
What selling can mean for your VA entitlement
Payoff, assumption and substitution affect your next benefit differently.
7 minute read
Sold and paid in full
- Entitlement is generally restored when the property is sold and the loan is paid in full.
- If you have not restored entitlement, you may still have remaining entitlement for a next VA purchase, and county limits can apply.
Source: VA home loan entitlement and limits; VA Form 26-8978: Rights of VA Loan Borrowers
When a buyer assumes
- If a buyer assumes your loan and does not substitute entitlement, the entitlement you used can stay tied to that loan.
- An eligible veteran buyer who qualifies for substitution of entitlement may restore yours. A release of liability by itself is not the same thing.
Source: VA Form 26-8978: Rights of VA Loan Borrowers; VA Form 26-10291: Assumption Entitlement Acknowledgment; VA Circular 26-23-10: VA Assumption Updates
Your calculation
- Your individual entitlement belongs to VA and your lender. Request a Certificate of Eligibility before relying on it.
Source: VA home loan eligibility / Certificate of Eligibility; VA home loan entitlement and limits
Sources
Official material this lesson draws on. Vanguard's explanation is educational; current official requirements govern.