Veterans United Overcharged the VA and I Want My Eligibility Back


Dear Steve,

I purchased a house using my VA. The VA appraiser appraised what wasn’t there.

However I after moving in found out it required over $30,000 in permits, plans, and work to be livable, without penalties or fines.

I asked Veterans United what to do; they told me to deed in lieu. The paperwork showed I would owe nothing, yet they made a $40,000 claim against my eligibility.

They found Veterans United ( Mr. Cooper had overcharged VA $11,500, in which after a year, credited, however, won’t credit, the rest. So I have no VA eligibility. No one from VA will help.

How do I get my eligibility back?


Damon Day - Pro Debt Coach


Dear Ervin,

I have no idea what the exact scenario of your specific situation is other than what you allege.

Research has informed me that you can request a “one-time restoration” of entitlement to purchase another home.

And as with everything else with the government, there is a form for that.

This presentation from the VA led me to the form 26-1880. The VA presentation says you are entitled to a restoration of benefits by following the process below.

You can find the current copy of the Department of Veterans Affairs Request for a Certificate of Eligibility Form 26-1880.

According to Military Times, “Beneficiaries can reclaim their entitlement once if they’ve paid off the VA-backed loan, even if they do not sell the property. After using this option, future VA loans must come with the disposal of any property financed via VA-backed loans. The borrower also must continue to meet VA loan requirements, including residency rules; in other words, you’ll need to be a full-time resident of the new home.”

Since you stated there was no ongoing mortgage claim and the previous loan was showing as satisfied, this solution seems to be a reasonable step to take.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

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