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.