VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement

Chapter 2
Veterans Eligibility and Entitlement
Overview

In this Chapter This chapter contains the following topics.
Topic See Page
2.01 How to Establish the Applicants Eligibility for a VA
Loan
2-2
2.02 What the ertificate of Eligibility Tells the Len!er 2-"
2.0# How to Apply for a ertificate of Eligibility 2-$
2.0" %roof of &er'ice (e)*ire+ents 2-10
2.0, -asic Eligibility (e)*ire+ents 2-1#
2.0. (estoration of %re'io*sly /se! Entitle+ent 2-1,
2.00 1is*se of Veterans Entitle+ent 2-10
2.0$ ertificate of Veteran &tat*s23HA Loans 2-1$
E4hibit 2-A 5*ic6 (eference Table for VA Eligibility 2-20
2-1
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.01 How to Establish the Applicants Eligibility or a VA
!oan

What is
Elig
ibili
ty?
Eligibility is the 'eterans entitle+ent to VA ho+e loan benefits *n!er the law7
base! on +ilitary ser'ice. An eligible 'eteran +*st still +eet cre!it an! inco+e
stan!ar!s in or!er to )*alify for a VA-g*arantee! loan. A len!er cannot +a6e
a VA-g*arantee! loan to an ineligible applicant *n!er any circ*+stances.

The Lenders
Rol
e
-efore processing a loan for an applicant7 the len!er +*st ens*re VA has
!eter+ine! the applicant is an eligible 'eteran. Each application +*st be
e'al*ate! by VA to see if the applicant +eets criteria establishe! by law.
8t is critical that a potential borrowers eligibility be establishe! early in the loan
process. This ass*res that a len!er is wor6ing with an eligible party. 9elaying
the application for eligibility can create the following proble+s:
Ti+e an! +oney +ay ha'e been e4pen!e! nee!lessly7 if VA !eter+ines the
'eteran is not eligible.
The loan closing +ay be !elaye! pen!ing a final !eter+ination7 if the
'eterans eligibility !eter+ination is +ore co+ple4 than nor+al.
;nce VA fin!s an applicant eligible7 VA iss*es the 'eteran either
VA 3or+ 2.-$#207 ertificate of Eligibility for Loan <*aranty -enefits7 or
VA 3or+ 2.-$#20a7 ertificate of Eligibility for Loan <*aranty -enefits
=(eser'es>?ational <*ar!@.
A Certificate of Eligibility is the only reliable Proof of Eligibility for the
Lender.
;nce a ertificate of Eligibility =;E@ is recei'e!
there is generally no nee! to ha'e it *p!ate! before loan closing7 an!
contact VA if there is so+e )*estion as to the acc*racy of !ata on the ;E.
Contined on ne!t page
2-2
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.01 How to Establish the Applicants Eligibility for a VA
Loan, Continued

The
Len
der
s
Rol
e
=con
tin*
e!@
Altho*gh this chapter !isc*sses so+e of the basic eligibility criteria7 it is not
inten!e! to pro'i!e a len!er with all the 6nowle!ge necessary to +a6e an
eligibility !eter+inationA conse)*ently7 all the 'ario*s e4ceptions an! n*ances
of eligibility are not incl*!e!. E4hibit 2-A at the en! of this chapter pro'i!es a
)*ic6 reference an! o'er'iew of basic eligibility criteria.
The final eligibility !ecision is always +a!e by VA.
8n all cases in which the applicant !oes not alrea!y ha'e a ;E7 the applicant7
the len!er7 or an a*thoriBe! representati'e acting on the applicants behalf7
sho*l! s*b+it a properly co+plete! VA 3or+ 2.-1$$0 7 (e)*est for a
ertificate of Eligibility for VA Ho+e Loan -enefits to VA7 e'en if it appears
the applicant is not eligible.
8t is i+portant to allow VA to +a6e a for+al !eter+ination an!7 if the applicant
is ineligible7 to notify the applicant of his or her appeal rights.

2-#
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.02 "hat the Certiicate o Eligibility #ells the !ender
Elig
ibili
ty
The len!er +ay rely on a ertificate of Eligibility as proof that a 'eteran is
eligible for a VA ho+e loan.
Am
ont
of
Enti
tlem
ent
The a+o*nt of a'ailable entitle+ent can be fo*n! at the center of the ;E in
the entitle+ent section. The +a4i+*+ a'ailable entitle+ent that can be shown
on the ;E is C#.7000.
E'en tho*gh the 'eteran +ay *se *p to C,070,0 of entitle+ent for certain loans
greater than C1""70007 the ;E will ne'er reflect the a!!itional C1"70,0 in the
a'ailable entitle+ent a+o*nt shown. 8nstea!7 an asteris6 by the wor!
Da'ailableE refers to a note which e4plains the a!!itional entitle+ent.
Amont of a!ailable entitlement is the most important item on a C"E to a
Lender# becase $As garanty on the loan generally cannot e%ceed this
amont&
An e4ception is the a!!itional C1"70,0 entitle+ent a'ailable on certain loans
greater than C1""7000.
8f a'ailable entitle+ent shown is less than C#.70007 it is for one of two reasons
the +a4i+*+ entitle+ent has been change! by law since VA iss*e! the
;E7 or
the 'eteran pre'io*sly *se! entitle+ent that has not been restore!.
The last fo*r changes in the law which i+pacte! the +a4i+*+ a'ailable
entitle+ent were as follows.
'a%imm Entitlement on C"E (eginning )ate
C#.7000 3ebr*ary 17 1F$$
C207,00 ;ctober 17 1F$0
C2,7000 ;ctober 17 1F0$
C107,00 9ece+ber #17 1F0"
Contined on ne!t page
2-"
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.02 What the Certificate of Eligibility Tells the Lender,
Continued

Amo
nt
of
Entit
leme
nt
=conti
n*e!@
8f the ;E shows a'ailable entitle+ent e)*al to the +a4i+*+ in effect on the
!ate the ;E was iss*e! or last *p!ate!7 there is no nee! to ha'e the ;E
*p!ate! to reflect the c*rrent +a4i+*+.
The len!er can ass*+e the 'eteran now has C#.7000 a'ailable.
8f7 howe'er7 the 'eteran pre'io*sly *se! entitle+ent which has not been
restore!7 a'ailable entitle+ent is re!*ce! by the a+o*nt *se! on the prior
loan=s@. The len!er has two options in this sit*ation:
1a6e the loan 6nowing that VAs g*aranty is li+ite! to the a+o*nt of
a'ailable entitle+ent7 or
Ha'e the 'eteran apply for restoration of pre'io*sly *se! entitle+ent.
Reference: &ection 2.0. for an e4planation of how to apply for restoration
an! *n!er what circ*+stances it +ay be grante!.
Note: A 'eteran witho*t f*ll entitle+ent b*t with so+e portion of the C#.7000
a'ailable can still *se the a!!itional C1"70,0 entitle+ent for certain loans
greater than C1""7000. A!! the a'ailable entitle+ent on the ;E to C1"70,0
to calc*late total entitle+ent a'ailable for s*ch loans.
Contined on ne!t page
2-,
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.02 What the Certificate of Eligibility Tells the Lender,
Continued
Con
ditio
ns
on!itions that the len!er an! 'eteran +*st co+ply with are liste! on the
;E.
&o+e ;E for+s list fi'e con!itions with a chec6+ar6 bo4 = @ in front of
each con!ition. VA places a chec6+ar6 by any that are applicable. The
following table pro'i!es the actions a len!er sho*l! ta6e for each con!ition7 if
applicable:
Condition What to )o
Vali! *nless !ischarge! or release!
s*bse)*ent to !ate of this
certificate. A certification of
contin*o*s acti'e !*ty as of the
!ate of note is re)*ire!.
Ens*re the 'eteran is still on acti'e !*ty
before closing the loan. 8f the 'eteran is
!ischarge! or release! prior to loan
closing7 re)*est a new eligibility
!eter+ination fro+ VA.
E4cl*!e! entitle+ent pre'io*sly
*se! for VA L8? GGGGGGGGG as
shown herein is a'ailable only for
*se in connection with the
property which sec*re! that loan.
8f the entitle+ent *se! for the prior loan
i!entifie! in this con!ition is nee!e! for
the propose! loan7 ens*re the propose!
loan will be sec*re! by the sa+e
property as the prior loan.
Entitle+ent has been *se! for
+an*fact*re! ho+e p*rposes.
(e+aining entitle+ent for
a!!itional +an*fact*re! ho+e *se
is: CGGGGGGGGGGGGGG.
8f the propose! loan in'ol'es a
+an*fact*re! ho+e7 a!here to the
entitle+ent li+it in!icate!.
?ot eligible for any loan to
p*rchase a +an*fact*re! ho+e
*nit *ntil 'eteran !isposes of *nit
p*rchase! with +an*fact*re!
ho+e loan n*+ber VA L8?GGGG.
8f the propose! loan in'ol'es a
+an*fact*re! ho+e7 ens*re that the
'eteran has !ispose! of the *nit
in!icate!.
Entitle+ent pre'io*sly *se! for
VA L8? GGGGGGGGGGGGGG has
been restore! witho*t !isposal of
the property7 *n!er pro'ision of
#$ /.&.. #002b="@. Any f*t*re
restoration re)*ires !isposal of all
property obtaine! with a VA loan.
This is infor+ation for the 'eteran. The
len!er nee! not be concerne! if this
con!ition is applicable7 as long as the
a'ailable entitle+ent shown on the ;E
is s*fficient for the len!ers p*rposes.
Contined on ne!t page
2-.
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.02 What the Certificate of Eligibility Tells the Lender,
Continued
"the
r
C"E
*or
ms
;ther ;E for+s +ay be generate! electronically. ;nly the con!itions which
apply to the partic*lar 'eteran will appear on the ;E.
2-0
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.0$ How to Apply or a Certiicate o Eligibility

Procedres 8f the applicant !oes not alrea!y ha'e a ertificate of Eligibility7 the len!er
+ay assist the 'eteran in following these proce!*res:
Step Action
1 VA 3or+ 2.-1$$0 7 (e)*est for a ertificate of Eligibility for VA
Ho+e Loan -enefits7 fro+ the nearest VA Ho+e Loan Eligibility
enter7 other VA office7 or at
http:>>www.'ba.'a.go'>p*bs>ho+eloanfor+s.ht+.
Reference: &ee Appen!i4 A for a listing of VA offices.
2 o+plete the for+ as thoro*ghly as possible.
3ail*re to co+plete necessary ite+s +ay ca*se !elays.
# Attach all re)*ire! !oc*+entation to the for+.
References:
%art DEE of the instr*ctions on the bac6 of the for+ !escribes the
proof of +ilitary ser'ice nee!e!.
&ee &ection 2.0" for f*rther !etails on the re)*ire! proof of
+ilitary ser'ice incl*!ing circ*+stances when it +ay not be
necessary.
" &*b+it the for+ an! attach+ents to the appropriate VA Eligibility
enter:
Los Angeles Eligibility enter7 if yo* li'e in: Alas6a7 AriBona7
Ar6ansas7 alifornia7 olora!o7 Hawaii7 8!aho7 8llinois7 8owa7
Hansas7 Lo*isiana7 1innesota7 1ontana7 ?ebras6a7 ?e'a!a7 ?ew
1e4ico7 ?orth 9a6ota7 ;6laho+a7 ;regon7 &o*th 9a6ota7
Te4as7 /tah7 Washington7 Wisconsin or Wyo+ing.
Winston-&ale+ Eligibility enter7 if yo* li'e in Alaba+a7
onnectic*t7 9istrict of ol*+bia7 9elaware7 3lori!a7 <eorgia7
8n!iana7 Hent*c6y7 1aine7 1arylan!7 1assach*setts7 1ichigan7
1ississippi7 ?ew Ha+pshire7 ?ew Iersey7 ?ew Jor67 ?orth
arolina7 ;hio7 %ennsyl'ania7 %*erto (ico7 (ho!e 8slan! &o*th
arolina7 Tennessee7 Ver+ont7 Virginia7 or West Virginia.
Reference: &ee Appen!i4 A for the a!!resses of the Eligibility
enters.
Contined on ne!t page
2-$
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.03 How to Apply for a Certificate of Eligibility, Continued
Application for
+nmarried
Sr!i!ing
Sposes
ertain *n+arrie! spo*ses of 'eterans are eligible for the VA ho+e loan
benefit =see &ection 2.0,@. 8f they are applying for the first ti+e7 they +*st
co+plete VA 3or+ 2.-1$10 7 (e)*est for 9eter+ination of Loan <*aranty
Eligibility-/n+arrie! &*r'i'ing &po*ses7 instea! of VA 3or+ 2.-1$$0. They
+*st co+plete VA 3or+ 2.-1$10 an! forwar! it to the appropriate VA
Eligibility enter.
Note: Eligibility !eter+inations for *n+arrie! s*r'i'ing spo*ses +ay ta6e
consi!erably longer to process than others.

Pre!i
osly
Isse
d
C"E
is
'issi
ng
8f the 'eterans ;E has been lost7 stolen or !estroye!7 the 'eteran +*st
follow the D%roce!*resE !escribe! in this section to obtain a !*plicate =that is7
s*b+it a co+plete! re)*est for+ with re)*ire! proof of +ilitary ser'ice@.

Proc
essin
g
Time
Again7 it is 'ery i+portant that the re)*est for a ;E be the first step in the
loan process for a 'eteran who !oes not alrea!y ha'e a ;E.
VA will +a6e e'ery effort to process re)*ests for a ertificate of Eligibility in
a ti+ely +anner.
1ost can be processe! within 0 !ays of receipt.
ases for which the applicant !oes not clearly +eet the basic eligibility
criteria will *s*ally re)*ire a!!itional !e'elop+ent an! longer processing
ti+e.
Example: A case in'ol'ing an applicant who recei'e! an other than
honorable !ischarge +ay re)*ire VA to re)*est !ischarge recor!s fro+ the
appropriate ser'ice !epart+ent.

2-F
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.0% &roo o 'ervice (e)*irements
)isc
harg
ed
$ete
rans
,Reg
lar
'ilit
ary-
99 3or+ 21"7 ertificate of (elease or 9ischarge 3ro+ Acti'e 9*ty7 will
generally contain all the infor+ation nee!e! for VA to +a6e an eligibility
!eter+ination for persons who ser'e! in a reg*lar co+ponent of the Ar+e!
3orces.
VA will accept originals or legible copies of the 99 3or+ 21".
%ersons separate! fro+ +ilitary ser'ice after Ian*ary 17 1F,0 sho*l! ha'e
recei'e! 99 3or+ 21". %ersons separate! after ;ctober 17 1F0F sho*l!
f*rnish opy " of 99 3or+ 21" which incl*!es character of ser'ice an!
separation reason . %ersons separate! fro+ acti'e !*ty before Ian*ary 17 1F,0
recei'e! !oc*+entation other than 99 3or+ 21". To be acceptable it sho*l!
in!icate
length of ser'ice7 an!
character of ser'ice.
$ete
rans
Still
on
Acti!
e
)ty
Veterans still on acti'e !*ty +*st pro'i!e a c*rrent state+ent of ser'ice signe!
by7 or by the !irection of7 the a!K*tant7 personnel office7 or co++an!er of the
*nit or higher hea!)*arters they are attache! to. There is no one for+ *se!
*nifor+ly by the +ilitary for a state+ent of ser'ice. While state+ents of
ser'ice are typically on +ilitary letterhea!7 so+e +ay be co+p*ter generate!.
The state+ent of ser'ice +*st clearly show
'eterans f*ll na+e
&ocial &ec*rity ?*+ber =&&?@
!ate of birth
the entry !ate on acti'e !*ty
the !*ration of lost ti+e7 if any7 an!
the na+e of the co++an! pro'i!ing the infor+ation.
Contined on ne!t page
2-10
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.04 Proof of Service Requirements, Continued
)ischarged
Reser!e./ard
'embers
There is no one for+ *se! by the (eser'es or ?ational <*ar! which is si+ilar
to 99 3or+ 21".
9ischarge! +e+bers of the Ar+y or Air ?ational <*ar! +ay s*b+it
?<- 3or+ 227 (eport of &eparation an! (ecor! of &er'ice7 or a points
state+ent.
Typically7 all +e+bers of the (eser'es an!>or <*ar! recei'e an ann*al
retire+ent points s*++ary which in!icates the le'el an! length of
participation. The applicant sho*l! s*b+it the latest s*ch state+ent recei'e!
along with e'i!ence of honorable ser'ice.
VA will accept originals or legible copies.
Crrent
Reser!e./ard
'embers
8n!i'i!*als who are still +e+bers of the (eser'es><*ar! +*st pro'i!e a
state+ent of ser'ice signe! by7 or by the !irection of7 the a!K*tant7 personnel
office7 or co++an!er of the *nit or higher hea!)*arters they are attache! to.
There is no one for+ *se! *nifor+ly by the +ilitary for a state+ent of ser'ice.
While state+ents of ser'ice are typically on +ilitary letterhea!7 so+e +ay be
co+p*ter-generate!.
The state+ent of ser'ice +*st clearly show
'eterans f*ll na+e
&ocial &ec*rity ?*+ber =&&?@
entry !ate of applicants (eser'e><*ar! !*ty7 an!
the na+e of the co++an! pro'i!ing the infor+ation.
Note: The state+ent +*st clearly in!icate that the applicant is an Dacti'eE
reser'ist an! not K*st in a control gro*p =inacti'e stat*s@.
Contined on ne!t page
2-11
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.04 Proof of Service Requirements, Continued
Assis
tance
in
"bta
ining
Re0
ired
Proo
f of
Ser!i
ce
There will be cases where an applicant !ischarge! fro+ ser'ice is *nable to
pro'i!e his or her proof of ser'ice. 8f the 'eteran has been !ischarge! fro+
reg*lar acti'e !*ty7 s*b+ission of VA 3or+ 2.-1$$0 to the appropriate
Eligibility enter sho*l! not be !elaye! while the 'eteran atte+pts to obtain
e'i!ence of ser'ice since VA +ay be able to +a6e a !eter+ination by referring
to internal recor!s. ;therwise7 !ischarge! reser'ists an! other !ischarge!
'ets for who+ VA has no internal recor!s sho*l! obtain an &3 1$07 (e)*est
%ertaining to 1ilitary (ecor!s fro+ the nearest Eligibility enter7 other VA
;ffice7 or at www.'ba.'a.go'>p*bs>for+s1.ht+. An &3 1$0 can be *se! by
the 'eteran to re)*est a copy of his or her 99 3or+ 21" or e)*i'alent.

2-12
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.0+ ,asic Eligibility (e)*irements
/ene
ral
Rle
for
Eligi
bility
A 'eteran is eligible for VA ho+e loan benefits if he or she ser'e! on acti'e
!*ty in the Ar+y7 ?a'y7 Air 3orce7 1arine orps7 or oast <*ar! after
&epte+ber 1,7 1F"07 an! was !ischarge! *n!er con!itions other than
!ishonorable after either
F0 !ays or +ore7 any part of which occ*rre! !*ring warti+e7 or
1$1 contin*o*s !ays or +ore =peaceti+e@.
2 Jear (e)*ire+ent: A greater length of ser'ice is re)*ire! for 'eterans who
enliste! =an! ser'ice began@ after &epte+ber 07 1F$07 or
entere! ser'ice as an officer after ;ctober 1.7 1F$1.
These 'eterans +*st ha'e co+plete! either
2" contin*o*s +onths of acti'e !*ty7 or
the f*ll perio! for which calle! or or!ere! to acti'e !*ty7 b*t not less than
F0 !ays =any part !*ring warti+e@ or 1$1 contin*o*s !ays =peaceti+e@.
Note: ases in'ol'ing other than honorable !ischarges will *s*ally re)*ire
f*rther !e'elop+ent by VA. This is necessary to !eter+ine if the ser'ice was
*n!er other than !ishonorable con!itions.
Contined on ne!t page
2-1#
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.05 Basic Eligibility Requirements, Continued
Wartime and
Peac
etime
Warti+e an! peaceti+e refer to the following perio!s of ser'ice:
Wartime Peacetime
Worl! War 88
F>1.>"0L0>2,>"0
%ost Worl! War 88 perio!
0>2.>"0L.>2.>,0
Horean conflict
.>20>,0L1>#1>,,
%ost Horean perio!
2>1>,,L$>">."
Vietna+ Era
$>,>."L,>0>0,
=The Vietna+ Era begins 2>2$>.1 for
those in!i'i!*als who ser'e! in the
(ep*blic of Vietna+.@
%ost Vietna+ perio!
,>$>0,L$>1>F0
%ersian <*lf War
$>2>F0L!ate to be !eter+ine!
Eligibility for
Rese
r!es
and.
or
/ar
d
1e+bers of the (eser'es an! ?ational <*ar! who are not otherwise eligible
for loan g*aranty benefits are eligible *pon co+pletion of . years ser'ice in the
(eser'es or <*ar!. The applicant +*st ha'e been honorably !ischarge! fro+
s*ch ser'ice *nless he or she is either
in an inacti'e stat*s awaiting final !ischarge7 or
still ser'ing in the (eser'es or <*ar!.
Eligibility for (eser'es an! <*ar! e4pires on F>#0>00.
Eligi
bility
of
Spo
ses
of
$ete
rans
&o+e spo*ses of 'eterans +ay ha'e ho+e loan eligibility. They are
the *n+arrie! s*r'i'ing spo*se of a 'eteran who !ie! as a res*lt of ser'ice
or ser'ice-connecte! ca*ses7 an!
the spo*se of an acti'e !*ty +e+ber who is liste! as +issing in action =18A@
or a prisoner of war =%;W@ for at least F0 !ays. Eligibility *n!er this
18A>%;W pro'ision is li+ite! to one ti+e *se only.
Contined on ne!t page
2-1"
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.05 Basic Eligibility Requirements, Continued

"the
r
1al
ifyin
g
Ser!i
ce
ongress has perio!ically grante! 'eteran stat*s to gro*ps other than +e+bers
of the Ar+y7 ?a'y7 1arine orps7 an! oast <*ar!7 s*ch as certain +e+bers
of the %*blic Health &er'ice7 ca!ets at the ser'ice aca!e+ies7 certain +erchant
sea+an7 etc.
Len!ers sho*l! contact the appropriate VA Eligibility enter for assistance
when one of these *ni)*e cases is enco*ntere!.
E%ce
ption
s to
Leng
th of
Ser!i
ce
Re0
irem
ents
There are n*+ero*s e4ceptions to the length of ser'ice re)*ire+ents o*tline!
in this section. 3or e4a+ple7 one !ay of ser'ice is s*fficient for an in!i'i!*al
who is !ischarge! or release! fro+ ser'ice =reg*lar or (eser'e><*ar!@ !*e to
a ser'ice-connecte! !isability.
-eca*se of the co+ple4ity an! n*+ber of e4ceptions7 this chapter !oes not
atte+pt to co'er all of the+. The e4ceptions pro'i!e another reason to s*b+it
a for+al eligibility application to VA in all cases7 e'en if it appears the
applicant is not eligible.

2-1,
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.0- (estoration o &revio*sly .sed Entitlement
(asic
Rest
orati
on
Entitle+ent pre'io*sly *se! in connection with a VA ho+e loan +ay be
restore! *n!er certain circ*+stances. ;nce restore! it can be *se! again for
another VA loan. (estoration of pre'io*sly *se! entitle+ent is possible if
the property which sec*re! the VA g*arantee! loan has been sol!7 and the
loan has been pai! in f*ll7 or
an eligible 'eteran-transferee has agree! to ass*+e the o*tstan!ing balance
on a VA loan an! s*bstit*te his or her entitle+ent for the sa+e a+o*nt
originally *se! on the loan. The ass*+ing 'eteran +*st also +eet
occ*pancy7 inco+e an! cre!it re)*ire+ents of the law.

Speci
al
Rest
orati
on
Case
s
8n a!!ition to the basic restoration criteria o*tline! abo'e7 a 'eteran +ay
obtain restoration of the entitle+ent *se! on a prior VA loan *n!er any of the
following circ*+stances:
the prior VA loan has been pai! in f*ll an! the 'eteran has +a!e application
for a loan to be sec*re! by the sa+e property which sec*re! the prior VA
loan7 or
Note: This incl*!es refinancing sit*ations in which the prior loan will be
pai! off at closing fro+ a VA refinancing loan on the sa+e property.
the prior VA loan has been pai! in f*ll7 b*t the 'eteran has not !ispose! of
the property sec*ring the loan. The 'eteran +ay obtain restoration of the
entitle+ent *se! on the prior loan in or!er to p*rchase a !ifferent property
one ti+e only. ;nce s*ch restoration is effecte!7 the 'eterans ertificate of
Eligibility will in!icate the one ti+e restoration. 8t will also a!'ise that any
f*t*re restoration will re)*ire !isposal of all property obtaine! with a VA
loan.
Contined on ne!t page
2-1.
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.06 Restoration of Previously Used Entitlement, Continued
2o3
to
Appl
y for
Rest
orati
on
The 'eteran +*st co+plete an! sen! VA 3or+ 2.-1$$07 (e)*est for a
ertificate of Eligibility7 to the appropriate Eligibility enter. 8f the 'eteran
has e'i!ence of pay+ent if f*ll of any prior loans =H/9-17 settle+ent
state+ent7 etc@7 a copy sho*l! be incl*!e!. A!!itionally7 any pre'io*sly iss*e!
;Es sho*l! be incl*!e!.
8f the 'eteran is applying for restoration in or!er to obtain another VA loan on
the sa+e property =as !escribe! abo'e in D&pecial (estoration asesE@7 the
'eteran sho*l! incl*!e a copy of the loan application s*b+itte! to the len!er
along with VA 3or+ 2.-1$$0. /n+arrie! s*r'i'ing spo*ses applying for
restoration of entitle+ent also nee! to co+plete VA 3or+ 2.-1$$0 s*pplying
the !ecease! 'eterans +ilitary ser'ice !ata an! VA clai+s file n*+ber.
2-10
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.0/ 0is*se o Veterans Entitlement
Wha
t
Cons
titte
s
'is
se?
A basic re)*ire+ent of the law go'erning the VA ho+e loan progra+ is that
the 'eteran has a bona fi!e intention of occ*pying his or her property as a
ho+e. Ho+e loan entitle+ent is not being *se! properly if the 'eteran
arranges to sell or con'ey the property to a thir! party prior to closing the
loan.
Wha
t to
)o
ontact the VA (egional Loan enter with K*ris!iction o'er the loan for
a!'ice regar!ing any case in which there +ay be a )*estion regar!ing the
legality of entitle+ent *se.
2-1$
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
2.01 Certiicate o Veteran 'tat*s 2 3HA !oans
/ene
ral
&ection 20#=b@=2@ of the ?ational Ho*sing Act per+its a 'eteran to obtain
slightly better ter+s than a non-'eteran when obtaining 3e!eral Ho*sing
A!+inistration =3HA@ +ortgage financing. Altho*gh this in'ol'es 3HA loans7
VA is charge! with +a6ing the entitle+ent !eter+ination for benefits *n!er
this pro'ision. VA will iss*e a ertificate of Veteran &tat*s7 VA 3or+ 2.-
$2.17 to any eligible 'eteran-applicant to *se when obtaining an 3HA loan.
2o3 to Apply The len!er +ay assist the 'eteran in following these proce!*res:

Step Action
1 ;btain VA 3or+ 2.-$2.1a7 (e)*est for ertificate of Veteran
&tat*s7 fro+ the nearest VA Eligibility enter.
Reference: &ee Appen!i4 A for a listing of VA offices.
2 o+plete the for+ as thoro*ghly as possible.
3ail*re to co+plete necessary ite+s +ay ca*se !elays.
# Attach proof of +ilitary ser'ice to the for+.
Reference: &ee &ection 2.0" for f*rther !etails on the re)*ire!
proof of +ilitary ser'ice.
" &*b+it the for+ an! attach+ents to the appropriate VA Eligibility
enter.
$ete
ran
*on
d
Ineli
gible
A!!itionally7 'eterans who apply for VA benefits on VA 3or+ 2.-1$$0 an!
are fo*n! ineligible7 +ay be fo*n! eligible for the 3HA progra+. 8f so7 they
will be iss*e! an 3HA ertificate of Veteran &tat*s conc*rrent with VAs
notice of !enial of eligibility for the VA progra+.
Contined on ne!t page
2-1F
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
2.08 Certificate of Veteran Status - FHA Loans, Continued
1al
ificat
ions
<enerally7 eligibility +ay be establishe! thro*gh
acti'e !*ty in the Ar+e! 3orces
acti'e !*ty for training in a reser'e co+ponent of the Ar+e! 3orces7 or
acti'e !*ty or acti'e !*ty for training in the ?ational <*ar! or Air ?ational
<*ar!.
The length of ser'ice re)*ire+ents are si+ilar to the re)*ire+ents for a VA
ertificate of Eligibility.
(rea
4 in
Ser!i
ce
;ne i+portant !istinction between VA an! 3HA eligibility re)*ire+ents is
3or an 3HA ertificate of Veteran &tat*s7 a 'eteran +*st ha'e been
!ischarge! or release! *n!er con!itions other than !ishonorable.
A VA ertificate of Eligibility can be iss*e! to a 'eteran still on acti'e !*ty.
An 3HA ertificate of Veteran &tat*s cannot be iss*e! to a person who is
still ser'ing on acti'e !*ty an! has ha! no brea6 in ser'ice.

2-20
VA Pamphlet 26-7, Revised Chapter 2: Veterans Eligibility and Entitlement
E4hibit 22A5 6*ic7 (eerence #able or VA Eligibility

ERA )ates Time Re0ired
WW 88 F>1.>"0L0>2,>"0 F0 !ays
%;&T WW 88 0>2.>"0L.>2.>,0 1$1 !ays
H;(EA? .>20>,0L1>#1>,, F0 !ays
%;&T H;(EA? 2>1>,,L$>">." 1$1 !ays
V8ET?A1 $>,>."L,>0>0,
Note: The Vietna+ Era began
2>2$>.1 for those in!i'i!*als
who ser'e! in the (ep*blic of
Vietna+.
F0 !ays
%;&T V8ET?A1 ,>$>0,LF>0>$0
,>$>0,L10>1.>$1
F>$>$0L$>1>F0
10>10>$1L$>1>F0
enliste!L1$1 !ays
officersL1$1 !ays
enliste!L2 yearsMM
officersL2 yearsMM
%E(&8A? </L3 $>2>F0Lpresent 2 years
55Note: The 'eteran +*st
ha'e ser'e! 2 years or the f*ll
perio! which calle! or or!ere!
to acti'e !*ty =at least F0 !ays
!*ring warti+e an! 1$1 !*ring
peaceti+e@.

"ther Eligible Persons Time Re0ired
Acti'e 9*ty 1e+ber
Note: ertificate only 'ali! while 'eteran
re+ains on acti'e !*ty.
F0 !ays =1$1 !*ring peaceti+e@
(eser'es><*ar! . years in &electe! (eser'es.
/?1A((8E9 &/(V8V8?<
&%;/&E&
?o ti+e re)*ire+ent. Veteran +*st ha'e !ie! on
acti'e !*ty or fro+ a ser'ice-connecte! !isability.
%;W>18A &po*ses Veteran +*st ha'e been %;W or 18A F0 !ays.

2-21
Chapter 2: Veterans Eligibility and Entitlement VA Pamphlet 26-7, Revised
Application for /n+arrie! &*r'i'ing
&po*ses....................................................F
-asic Eligibility (e)*ire+ents....................1#
ertificate of Eligibility............................"7 $
ertificate of Veteran &tat*s - 3HA Loans 1F
;E 3i'e on!itions....................................
;E %rocessing Ti+e..................................F
*rrent &tate+ent of &er'ice.....................10
99 3or+ 21"7 ertificate of (elease or
9ischarge 3ro+ Acti'e 9*ty..................10
Eligibility 9ecision.......................................#
Eligibility 9escription...................................2
Eligible Veteran 9eter+ination....................2
3HA Loan -rea6 in &er'ice.......................20
3HA Loan 5*alifications............................20
Han!ling 1is*se.........................................1$
How to Establish the Applicants Eligibility
for a VA Loan..........................................2
8ss*e! ;E is 1issing.................................F
1a4i+*+ A'ailable Entitle+ent.................."
1is*se 9escription.....................................1$
1is*se of Veterans Entitle+ent................1$
?<- 3or+ 227 (eport of &eparation an!
(ecor! of &er'ice...................................11
;ther 5*alifying &er'ice 1e+bers............1,
%roof of &er'ice (e)*ire+ents...................10
(e!*cing A'ailable Entitle+ent...................,
(eser'es><*ar! &tate+ent of &er'ice &igne!
................................................................11
(estoration of %re'io*sly /se! Entitle+ent
................................................................1.
The Len!ers (ole........................................2
VA Eligibility 5*ic6 (eference Table........21
Veteran 3o*n! 8neligible for 3AA Loans...1F
Veterans Eligibility an! Entitle+ent............1
Warti+e an! %eaceti+e (e)*ire+ents.......1"
2-22