Posted by JPiper on February 26, 1999 at 11:46:47:
As it pertains to a VA assumption, anyone can assume, either Veteran or non-Veteran. As far as I know there is no advantage to being a Veteran when it comes to an assumption.
Your VA eligibility however is an advantage for you. As you know you can buy 0 down, and you can have the seller pay your closing costs. In other words, you can buy with 0 out of your pocket. To use it you need to meet VA standards??standards which are normal for most types of new loans. You should know that the property needs to meet VA guidelines as well. So properties needing significant rehab as an example aren’t going to fly with VA. Income guidelines are the same as FHA?..29% front end ratio, 41% back end ratio.
Make sure you deal with a direct endorsement underwriter. This is a lender who can approve a VA loan internally. If you deal with someone who doesn’t have the direct endorsement capability, it will extend the time on your loan to include VA approval. With a direct endorsement underwriter you can do a VA loan as quickly and easily as an other type of loan.
I’d get out there and use your VA. It’s a great loan?.and later it when you sell it’s worth money in your pocket. Go get yourself a house. The terms on your own VA loan are going to be better than on ANY assumption you’ll be able to find.
Posted by Bob-Tx on February 24, 1999 at 13:52:51:
Seller believes his VA loan is a QA one. Loan taken out in Sept. of 1986. Can anyone advise if this could be true without me getting my hands on his paperwork. I forget when the end of assumable federally insured loans occurred.
Thanks
Posted by Dave T on February 24, 1999 at 22:18:59:
Additional qualification to the comments posted below:
Even though the loan may be a non-qualifying assumable, IF the seller is a veteran AND wants his full VA loan eligibility reinstated, then a release of liability will be required.
A release of liability is only possible if the person assuming the loan also “qualifies” for the loan. In this instance, a non-qualifying assumable becomea a Qualifying Assumable.
Posted by JPiper on February 24, 1999 at 17:55:18:
All VA loans are assumable. Those VA loans originated before March 1, 1988 are assumable without qualifying with the lender for a $45 fee. You fill some paperwork out and pay the owner whatever you have negotiated for his equity.
Posted by JPiper on February 24, 1999 at 22:42:03:
Just to add some clarification, a Veteran doesn’t NECESSARILY need a release of liability to obtain another VA loan, nor does he need FULL VA loan eligibility reinstated to obtain another VA loan.
Rather, a calculation is made concerning VA loan eligibility, taking into account the remaining VA loan balance and the proposed new VA loan. Whether the Veteran is eligible for a new VA loan when he has liability on an existing VA loan is something that needs to be calculated given each set of circumstances.
Can you comment further on Vet-to-Vet assumables if you have any information about that?
I have not looked into these for years. I didn’t find any info on the VA web site, in fact less than I’ve found here and from you. It seems from the past I recall something about vet-to-vet transfers.
I’m the vet, have never used my elligibility, but did buy/sell one residence. I have my elligibility letter. I’d be looking for, I think my best bet, a 4-and-under unit (as VA considers 4 and under not to be investment) live in one unit as a start.
Naturally, I’m on this board for investing, but I also
am currently renting, so I need to fix that.