How Does Divorce Affect VA Loan Re-Eligibility?
This vignette highlights the rules.
If a veteran with a spouse purchases a home with a VA loan they are not eligible for another VA loan until that loan is paid in full.
If the veteran’s spouse is awarded the property in a divorce settlement, the veteran’s entitlement cannot be restored and they can’t obtain another VA loan until their ex-spouse refinances the property and/or pays off the VA loan in full.
If the ex-spouse is also a veteran they may be able to substitute their entitlement; consult with the VA for situations with this level of complexity.