The VA loan benefit is offered to all qualifying veterans who have met their time in service requirements and/or discharge requirements. Some military people 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.
VA loan rules state that a borrower who has purchased and paid off a home with a VA insured mortgage can apply for another home loan--but the first requirement is that the borrower must apply for restored VA loan eligibility. This means showing proof that the original VA loan has been paid in full or otherwise satisfied.
To get your full entitlement restored, borrowers are required to sell the property before getting VA loan eligibility restored. But on a one-time basis the Department of Veterans Affairs does permit a new VA loan without requiring the borrower to sell the first property. In this specific case, though, you would need to have repaid the loan in full.
But you do not need to repay the loan in full to seek another VA loan. It’s possible to have two or more VA loans at the same time. It is also possible to have a VA loan foreclosed upon and be able to use leftover VA loan entitlement for another VA-backed mortgage.
Talk with a lender in more detail if you are wanting to use a VA loan after a default or while having another outstanding VA loan. Using your remaining entitlement can come with some additional requirements, and some lenders understand how to do this better than others. Don’t let a lender tell you that you cannot seek another VA loan if you already have one active or if you’ve defaulted on one in the past.
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.
