Sometimes, stuff happens in life right? What's the old saying? "Plan for the worst, hope for the best and settle for something in the middle?" Two years ago you sold this couple their beautiful first starter home. You just received a call from one of them that they're divorced and they want to buy a new house and use you as their Realtor® but they don't know what's the status of the their VA elibility?
So what happens to your VA eligibility if you purchased a home with your spouse using your VA benefits and you got divorced and he/she got the house?
Good question, the short answer is, entitlement cannot be restored unless the ex spouse refinances the property and/or pays off the VA loan in full, or, is a veteran themselves and substitutes their benefits for yours. Check out FAQ's here of the VA. Short of that, you just tied up your benefits for a long time, maybe for the entire life of the loan. Bummer, yes! But if you plan ahead of time and identify such a scenario in a pre-nuptial agreement perhaps this type of situation could be avoided. Just food for thought.
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