With the VA Loan program, more of our military families can realize the American Dream of home ownership. How much do you know about VA Home Loans? Take our quiz and find out!
True or False – You can only use the VA loan benefits once.
False! – There is no limit! Active Duty military and Veterans can always take advantage of the VA loan product when purchasing a home. The borrower may have to make a down payment, should they exceed their entitlement, but there are no restrictions on how many times a Veteran or Active Duty Service Member can receive a VA loan.
True or False – VA mortgage benefits expire.
False! – VA mortgage benefits NEVER expire for eligible participants. The Montgomery GI Bill benefits expire 10 years after discharge, but those benefits are in regard to education, not homeownership.
True or False – A VA borrower is limited to one VA loan at a time.
False! – An Active Duty Service Member or Veteran can have multiple VA loans at a time as long as they have not exceeded the maximum entitlement and eligibility. The borrower may have to make a down payment, should they exceed their entitlement. In order to have multiple VA loans, the borrower must be able to afford both payments and sufficient entitlement is required.
True or False – You cannot lease your home.
False! – According to the law, homeowners with a VA loan are entitled to renting out their home, if previously occupied. However, when applying for a VA loan, the homeowner must certify that they intend on making the home their primary residence. Borrowers are not permitted to use their VA benefits to purchase rental property except if they are using their benefits to buy a duplex, triplex or fourplex. Under these circumstances, the borrower must certify that they will occupy one of the units.
True or False – An Active Duty Service Member or Veteran is not allowed to have another VA loan if they have a short sale or foreclosure on a VA loan.
False! – They will still be able to get another VA loan, even if there is a claim on the borrower’s entitlement. The maximum amount they would qualify for may be less due to the claim, but they are still eligible for another VA loan.
Source: NewTowne Mortgage NMLS number #214817