VA Certificate of Eligibility - What does this mean?

[DRTDEVL]

I pulled my COE a while back, and can't figure it out.

Backstory:

 

Filed divorce in 2016, final 1/18.  Ex ran up as much as she could during the separation and contested everything along the way to prolong the proceedings.  14 days after the final decree, my CH 13 was filed.

 

I did NOT reaffirm the house she was still living in and she refused to refinance in her name (or assume the VA loan, as she was a vet herself) and it went to Foreclosure.  It was IIB, as it was not reaffirmed, and was sold in late 2018, fixed up, then resold in 2019.  The initial loan was an IRRRL refi in 2/16.

 

Here's what my COE says:

Quote

 

Loan amount: $118,850

Date of Loan: 2/12/2016 

Entitlement Charged: $36,000

Status: Foreclosure/Deed in Lieu

 

THIS VETERAN'S BASIC ENTITLEMENT IS $0*

TOTAL ENTITLEMENT CHARGED TO PREVIOUS VA LOANS IS $36,000*

 

 

What would be required to obtain future eligibility?  Does this mean I need to pay the VA $36k?  Or is there a different amount I would have to determine to make them whole and reestablish eligibility?

 

If its $36k, I'd be better off just going traditional or FHA for anything in the future.

 

[8ball]

I had to ask perplexity but you should talk to a loan officer.

Can You Get Another VA Loan?

• Yes, but with limitations. Even if your basic entitlement is $0, you may still have bonus or second-tier entitlement available, especially for loans exceeding $144,000348.

• The amount you can borrow with no down payment is limited to 25% of the difference between your county’s conforming loan limit and the amount of entitlement already charged458.

• For example, if the conforming loan limit in your area is $766,550 (most counties in 2024), your total maximum entitlement is $191,638 (25% of $766,550)4. Subtract the $36,000 charged, and you have $155,638 in remaining entitlement, which means you could potentially borrow up to $622,552 ($155,638 × 4) with no down payment, subject to lender approval and your credit/income458.

[DRTDEVL]

4 hours ago, 8ball said:

I had to ask perplexity but you should talk to a loan officer.

Can You Get Another VA Loan?

• Yes, but with limitations. Even if your basic entitlement is $0, you may still have bonus or second-tier entitlement available, especially for loans exceeding $144,000348.

• The amount you can borrow with no down payment is limited to 25% of the difference between your county’s conforming loan limit and the amount of entitlement already charged458.

• For example, if the conforming loan limit in your area is $766,550 (most counties in 2024), your total maximum entitlement is $191,638 (25% of $766,550)4. Subtract the $36,000 charged, and you have $155,638 in remaining entitlement, which means you could potentially borrow up to $622,552 ($155,638 × 4) with no down payment, subject to lender approval and your credit/income458.

That's a relief.  It would appear the max conforming in my county is $806,500 for 2025.  Mathematically, with that formula, I could borrow up to $662,500, which is nearly triple what I would seek.

 

Thanks for the insight.