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VA LoansCan the eligibility be renewed?

The United States Department of Veteran Affairs guarantees loans provided to veterans of the United States armed forces including the reserves and national guard. This is a part of the benefits conferred to veterans under the original Servicemen\'s Readjustment Act passed in 1944. The loans should be availed only from a authorized lender. They can be home, farm and business loans made to veterans or their surviving spouses if they have not remarried.

The eligible amount for a veteran varies from region to region. A funding fee is levied by the VA office. This amounts to 2.15% with no down payment for first time use and 3.3% for subsequent use. If a down payment is made, the funding fee is reduced. The veteran may choose to avail the complete amount or just a portion of the total amount eligible. This eligibility can be reused depending on a few criteria.

The eligibility for a VA loan is reusable if the previous loan has been completely paid and the property has been sold off. If the property is still owned, then the eligibility can be reused only once. When only a portion of the eligibility has been utilized initially, this remaining amount can be used after consulting with the lender.

If the payment of the loan incurs a default or if there is a foreclosure, the government will pay the loan. However, this will be considered as a loss to the government. Until the loss has been repaid, there will be no restoration of the eligibility.