69. A veteran purchased a home on a VA mortgage. Later, the veteran sold this home, paid off the loan, and made an offer on a more expensive home. Can another VA loan be obtained
Answer: C
Yes, because the first loan was paid
A veteran can obtain another VA loan after selling their home and paying off the original VA mortgage, as the entitlement used for the first loan is restored upon repayment.
A) No, there is a 5-year wait to obtain another VA loan
This option is incorrect. There is no mandatory waiting period of 5 years for veterans to obtain another VA loan after repaying their existing loan. Once the first loan is paid off, the veteran can apply for a new VA loan immediately.
B) No, a veteran may have only one such loan in a lifetime
This statement is also incorrect. Veterans are not restricted to just one VA loan in their lifetime. They can have multiple VA loans, provided they have restored their entitlement by paying off previous loans or meeting certain criteria.
C) Yes, because the first loan was paid
This option is correct. When a veteran pays off their VA loan, their entitlement is restored, allowing them to apply for another VA loan without any waiting period, as long as they meet the lender's requirements.
D) Yes, but for only half of the purchase price of the second home
This option is incorrect. There is no stipulation that limits the second VA loan to only half of the purchase price. The amount a veteran can borrow depends on their remaining entitlement and the purchase price of the new home, not a fixed percentage.
Conclusion
The correct answer is C, as it accurately reflects the policy that allows veterans to obtain a new VA loan after paying off their previous loan. Options A and B misrepresent the regulations concerning VA loans, while Option D incorrectly suggests a limitation on the loan amount that does not exist. Therefore, C is the only option that aligns with the current VA loan guidelines.