Ack! VA Loan confusion - Posted by Sandy FL

Posted by rudy on March 31, 1999 at 16:56:37:

property with a VA loan after the DOS clause can be purchased on a contract( VA reg,). rudy-austex

Ack! VA Loan confusion - Posted by Sandy FL

Posted by Sandy FL on March 31, 1999 at 10:24:52:

Secnario 1: Seller wants buyer to assume his VA (with qualifying) loan, and thereby the thing will be out of his name, and he can go use his VA status to buy a house in his new state.

Scenario 2: Seller wants buyer to take over his payments,
will sell “Subject to”, and then get a waiver (or something) from VA to say he is no longer responsible for the loan, and he can go get another VA loan in his new state.

Is scenario 2 possible? I have never heard of that.

Sandy FL

Re: Ack! VA Loan confusion - Posted by Scott(AK)

Posted by Scott(AK) on March 31, 1999 at 10:46:38:


To my knowledge scenerio number two is not done by VA.

One thing a lot of folks do not know though. If the borrower has not used the entire limit on his/her VA loan status they can get a second or third or howmany ever loans they can get that will total the VA amount.

OK say VA loan limit is $207K and a person has a loan now for 100K, they still have 107K they can use on another loan. So if they only used 50K on that they could even go get a third one for57K…the total of all loans cannot exceed the $207K.

There is one thing though…the borrower MUST be able to qualify for the amount of all the loans. I am not sure if VA would look at a lease as covering that loan and give them some credit towartds that or not. You lnow what I mean? How a lender will give someone 75% credit on a debt that is covered so the hit against the income is actually only 25%.

Maybe someone else can shed some light for us.