A Common Misconception about VA Home Loans
A common misconception of the VA Loan Program is that once you take out a VA loan to purchase a home, it is a one-time benefit that cannot be used again. However, that is simply not the case. According to the U.S. Department of Veterans Affairs, once a member of the military has met the eligibility requirements and earned the benefit, it can be utilized for the remainder of their lifetime. This re-use of the benefit is what is referred to as “restored entitlement.” In order for a veteran or servicemember to restore their VA loan entitlement, the following must occur:
- The property is sold, and
- The VA loan is paid in full
However, there are exceptions to this rule. If the veteran or servicemember pays off their VA loan, but elects to keep the property, they can receive a one-time restoration. Examples of this would be if the veteran or servicemember refinances their VA loan with a non-VA loan, or if they purchased the home decades ago and paid off the loan in full but still live in the property. This one-time restoration would allow the veteran or servicemember to keep the home they are currently in and still be able to purchase another home while utilizing their VA home loan benefit.
A VA home loan is a valuable resource for retired and current members of the military to utilize. To obtain more information on VA Home Loans, you can explore the U.S. Department of Veterans Affairs website at this link.