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 initial VA mortgage, as the entitlement used for the previous loan is restored upon its payoff.
A) No, there is a 5-year wait to obtain another VA loan
This option is incorrect because there is no mandatory 5-year wait for veterans to apply for a new VA loan after paying off their previous one. The restoration of entitlement allows veterans to secure new financing without such a delay.
B) No, a veteran may have only one such loan in a lifetime
This statement is incorrect as well. Veterans are not limited to a single VA loan in their lifetime. They can utilize their VA loan benefits multiple times, provided they pay off the previous loan and restore their entitlement.
C) Yes, because the first loan was paid
This option is correct. Once the veteran sells their home and pays off the VA mortgage, they can access their entitlement again, allowing them to obtain a new VA loan for a more expensive home.
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 amount of the second VA loan to only half of the purchase price of the new home. A veteran can fully finance a new home up to the VA loan limits if their entitlement is restored.
Conclusion
The correct answer, C, highlights the ability of veterans to access their VA loan benefits again after paying off a previous loan, thereby facilitating the purchase of a new home. Options A and B misrepresent the entitlement rules, while D incorrectly limits the financing potential, making them unsuitable choices.