Discuss Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam Topic 2 Question 18

If a lender has granted a VA-guaranteed loan to a veteran, the veteran

Amakes the down payment directly to the VA.

Bcannot apply for another VA loan in the veteran's lifetime.

Ccannot prepay any of the principal amount of the loan.

Dmay sell the property to another veteran who assumes the loan.

Suggested Answer: D

Comprehensive and Detailed Explanation (150--250 words):

A VA-guaranteed loan allows veterans to purchase with little or no down payment. Once the loan is made, the veteran deals directly with the lender --- not the VA. The VA guarantees repayment to the lender if default occurs.

A: Down payments, if required, are paid to the lender, not the VA.

B: Veterans may obtain multiple VA loans in a lifetime, depending on eligibility and entitlement.

C: VA loans allow prepayment without penalty.

D: VA loans are assumable, meaning another veteran (or even non-veteran, with lender approval) may assume the existing financing, often a benefit if the loan has a favorable interest rate.

Correct answer: D.

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21 comments · newest first

Lonny 2 days ago

C is also wrong. Veterans can prepay without penalties.

Benedict 7 days ago

Exactly! B is a common misconception. They can reuse benefits.

Casey 12 days ago

B is definitely incorrect. Veterans can use VA loans multiple times.

Shalon 18 days ago

Right, A is misleading. VA guarantees, not collects payments.

Dalene 23 days ago

A seems wrong. VA doesn't take down payments directly.

Kip 28 days ago

Agreed, D allows for loan assumption. It's a great benefit.

Rosalia 1 month ago

I think D is the best answer. Selling to another veteran makes sense.

Alberta 1 month ago

A is definitely wrong; the VA doesn't take down payments directly.

Sharika 1 month ago

Totally agree with D! It's a great benefit for veterans.

Malinda 2 months ago

Wait, can they really prepay the loan? I thought that was a no-go.

Kattie 2 months ago

I thought veterans could only use one VA loan at a time?

Galen 2 months ago

D is correct! Veterans can sell to another veteran who assumes the loan.

Carlene 2 months ago

B is misleading; veterans can use their benefits multiple times!

Sherita 2 months ago

A is definitely wrong; VA doesn't take down payments.

Diane 2 months ago

Wait, can they really sell it to another vet? Sounds too good to be true.

Margot 3 months ago

Totally agree with D! It's a great benefit.

Tammara 3 months ago

D is correct! Veterans can transfer loans.

Leota 3 months ago

I definitely remember that veterans can use their VA loan benefit more than once, so I don’t think option B is correct.

Hoa 3 months ago

I’m a bit confused about the down payment part. I thought VA loans didn’t require a down payment, but does that mean they pay something to the VA?

Alfreda 3 months ago

I feel like I saw a question similar to this in our practice tests, and I think the answer was about assuming the loan.

Bernardo 4 months ago

I think I remember that veterans can actually sell their property to another veteran who assumes the loan, but I'm not completely sure.

Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam - Topic 2 Question 18 Discussion