Borrowers should know there is no time limit or "maximum age" limit on VA loans. As long as a borrower is otherwise qualified, age and time do not play a part in the loan approval process, except where legal minimum age and mental competency are concerned. A borrower must be of legal age and considered competent to sign a binding contract in the state where that contract is to be enforced. But there is no expiration date with the VA home loan benefit.
Lenders are barred from discriminating on the basis of age, race, religion, gender or national origin. If a lender tells you your options are limited based on your age, find a new lender. The VA loan benefit is offered to all qualifying veterans who have met their time in service requirements and/or discharge requirements. Some military service members use their VA home loan benefits as soon as they are eligible, while others wait until later in life to invest in a home.
Borrowers who buy early, pay off their VA mortgages and decide to purchase again later on may wonder if there's a time limit or even an age limit for VA home loan eligibility. Fortunately, VA home loan rules are clear on these subjects.
The VA home loan benefit is reusable and can even be used to finance two homes concurrently in some cases. Let’s look at some examples:
If you own your home outright, you may be eligible for a one-time restoration of entitlement. Once you provide documentation that your VA loan is paid in full, you’ll be able to retain your home and buy another using the full VA loan entitlement.
After selling a home that you purchased using a VA loan, your full entitlement will be restored, allowing you to use your benefit again.
In many cases, veteran homebuyers purchase a home for less than their available entitlement amount. It may be possible to use your remaining entitlement to purchase another home without selling, as long as the new home will be your primary residence.
If you have previously defaulted on a VA loan, you’ve likely lost access to the entitlement that was tied up in that loan. However, your remaining entitlement should be available to purchase another home, assuming you meet the mandatory waiting period and credit requirements.
Talk with a lender in more detail about how to restore your VA entitlement. Using your remaining entitlement can come with some additional requirements, and some lenders understand how to do this better than others. A loan officer with experience in VA loans should have a thorough understanding of the rules around using and reusing your VA loan benefit.