|
Is it true that a VA Home Loan is not assumable? I want to sell my house and buy another one, but I have heard that a VA Loan cannot be assumed unless it is by another veteran with entitlement money left.
As is the case with any myth whether it concerns VA Home Loans or any other topic, you can usually trace it back to an element of truth. The assumable VA Loan is a good example of this phenomenon. In an attempt to get all the facts out, the explanation of this type of transaction has created as much confusion as it has understanding.
Make no Assumptions about Assumption The key to selling your VA Loan property on an assumption note is to check the rules. In the Q & A section of the VA home loan Guaranty section on their web site (http://www.homeloans.va.gov/faqpstln.htm) the question is asked, "Does having a VA loan limit a veteran's right or ability to sell the property?" The official answer to the question is, "No. A veteran may sell the property to a veteran or non-veteran at any time. However, if the loan was closed after March 1, 1988, and it will be assumed, the qualifications of the assumer must be reviewed and approved by the lender or VA." You can sell your house on an assumable note. What's the Punch Line? You need to understand that, while you can sell your VA Secured Loan to anyone who is approved by the VA, you will not be able to buy another house until that loan is totally paid off – unless the person assuming the loan is also a veteran who substitutes his or her entitlement for that of the seller. You can get a release of liability for the loan, but your entitlement will not be restored unless it is replaced by another or the loan is totally paid off.
Trackback(0)
 |
TrackBack URI for this entry
I am a DOD civilian...is this possible?
thank you