Percy:
Yes, you can attempt to have your “entity” ; the Trust FORMALLY assume this Non qualifying VA loan and its future repayment liability.
I took over an older low interest rate Non qualifying VA loan years ago using one of my corporations as the entity that assumed the indebteness.You will have to provide the lender with a Tax ID # or some other means of identifying the entity that will take over the loan.
You should have your title company request a formal “assumption package” from the lender and then see exactly what information the forms require to be filled in.
If the property sellers wish to be removed from liability then there is also a specific “release of liability form” that must be provided to the lender as well.
I have come across a Non-Qualifying Assumable VA loan. (Originated in 1986). I know I can buy ‘Subject To’, but the seller is interested in getting the loan out of their name.
Anyone have any experience having the a Land Trust assume the loan? I am think I can just request a Tax ID number for the trust and let it assume the loan.
Michael is right that an “entity” may be able to assume the loan, however a land trust is not any entity and doesn’t have a tax ID number. A land trust is just a way to hold title to a property (so you don’t use your own name) and has nothing to do with who is liable for making payments on said property.