Ask him to see the loan paperwork to see if there is anything in the fine print. It is my understanding that even with the assume, no qualify loans(pre March 1,1988) that the veteran is still liable unless the VA gives them a release of liability. I believe the wording is “the veteran is strongly urged to request a release of liability from VA.” Unlike the old FHA assumable loans there is no 5 year limit period on the veteran’s responsibility if there is no liability release. In order to get a release of liability the buyer and assumption must be approved.
So these loans are fully assumable- it’s just that the vet gets stuck with liability without the release. So, the only one who could say no to you doing the assume without qualify is the vet, not the lender.
Lender saying that 1985 VA loan is NOT NQA? - Posted by Steve C (TX)
Posted by Steve C (TX) on December 30, 1999 at 24:32:32:
Can this be so? I thought that all VA loans Prior to 1988 were Non-Qualifying Assumable. Here’s the deal - $16,000 left on this mortgage but it’s half of my purchase price, ARV is about $55,000 and repairs will be $4,000. The seller is taking back a 2nd for most of his equity so this is a very little down deal if the 1st can be assumed into my new corporation.
The current mortgage holder is saying that I have to qualify in order to assume the 1st. I tried my best to argue that this is a NQA but according to his “past experience” I, personally, must qualify. He said he’d take the matter to his Bord of Directors and their attorney and get back with me.
I think he’s feeding me a bunch of baloney but I do not have the experience (other than what I’ve heard) to refute his claims. What else can I tell him? I thought about saying I’m going to get the deed whether he likes it or not but I do not want to rock the boat too much yet. All advice from those that have walked before me would be appreciated.