There are certain conditions in which a veteran who has previously purchased a home using a VA home loan, can take their previously used entitlement and actually have it restored to its original amount. This is what restoration of entitlement is all about. It allows veterans to purchase another home.
Of course, to reap the benefits of this provision, one or the other of the following required conditions must be met. First, the property that was bought with the previous VA loan must already be sold and the loan should be paid in full. Second, the buyer (also called a qualified veteran-transferee) agrees to assume the remaining balance on the previous VA loan. This buyer will then substitute his or her entitlement for the same amount of entitlement that was used by the seller.
Restoration of entitlement can be granted only once. The veteran must have already paid the loan in full.
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