California Department of Veterans Affairs (CDVA) Accreditation Practice Exam

Loan Guaranty entitlements are a benefit provided to veterans to help them secure loans for purchasing homes, farms, or businesses. The correct statement regarding these entitlements is that they can be restored under certain conditions. This means that if a veteran had previously utilized their entitlement and has repaid the loan in full, they can apply for a restoration of that entitlement. In addition, entitlements may also be restored if the property is sold and the loan is paid off, or if the veteran assumes the loan under certain conditions.

The ability to restore entitlements is significant because it enables veterans to benefit from the loan guaranty program multiple times throughout their lives, depending on their circumstances. This flexibility helps veterans acquire new housing opportunities as their financial situations or needs change.

The other statements do not accurately describe the nature of Loan Guaranty entitlements. For example, they can be applied for multiple times, not just once, and they are typically used for specific types of loans related to housing or business, rather than any loan type. Additionally, entitlements do not have a five-year expiration period after discharge; instead, they remain active and can be restored as conditions are met, allowing for ongoing use by veterans.