Re: SHOW ME THE WAY…THERE MUST BE A WAY… - Posted by Troy M
Posted by Troy M on March 12, 2000 at 09:11:11:
It’s my understanding that the VA actually does allow owners to sell using a ‘contract for deed’. I believe it was Bronchick who relayed this (though I could be wrong, so check it out for yourself). So, if the VA will allow it, you can then show the VA that the property has been sold and the loan should not count against the seller when he tries to qualify for a new loan. (However, he will most likely remain liable for the debt).
Also, the total limit for VA eligibility is somewhere around 270k? (Double check this). This means the balance of the loan on the property you’re buying will be deducted from his eligibility. So, it depends on the current balance of his VA loan and the amount he wants to borrow for his next home. It can be done, but get ready to jump through some hoops. I would suggest looking for another home, preferably with more equity and less hoops.