Posted by chris on December 30, 1999 at 03:24:06:
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.