Hawaii Pre-Licensing National Practice Exam

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What benefit does a veteran receive upon full repayment of a VA mortgage?

Release of liability
Access to new property at a discount
Restoration of loan benefits for future use
Cash bonus

The correct answer is: Restoration of loan benefits for future use

Upon full repayment of a VA mortgage, a veteran is entitled to the restoration of loan benefits for future use. This is significant because the VA loan program allows veterans to use their entitlement multiple times as long as they fully repay their previous loans. By restoring the veteran's entitlement, they can qualify for another VA loan without needing a down payment or having to pay private mortgage insurance, enhancing their ability to purchase homes in the future. The other options do not accurately represent the main benefit received. For instance, while release of liability is a feature of VA loans when the borrower transfers their interest, it does not specifically relate to the repayment of a mortgage. Access to new property at a discount is not a recognized benefit tied to VA loans or the repayment process, and receiving a cash bonus is not a standard benefit within the VA loan system. Therefore, the restoration of loan benefits is the key advantage gained after full repayment, enabling veterans to maximize their borrowing capabilities in the future.