VA Qualifying Assumption Questions - Posted by Kelvin (Austin,Tx.)

Posted by James Harris on June 06, 2007 at 09:23:32:

Kelvin, If you want someone to assume your VA loan, it will have to be a Vet then after that you will get your entitlement back. There is also VA Vendee financing for those properties that the lender has forclosed on. Investors can get VA financing with 10% down.

VA Qualifying Assumption Questions - Posted by Kelvin (Austin,Tx.)

Posted by Kelvin (Austin,Tx.) on June 05, 2007 at 16:52:33:

VA Qualifying Questions
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Posted by Kelvin (Austin,Tx.) on June 04, 2007 at 17:15:02:

Purchased a new home in 2003 with a VA loan fixed at 5.5% intrest for 30 years. There is 25k in equity at this time and I want to sell the property. There are 2 issues: How do I get Release of liability and Restoration of entitlement. I have gotten several different answers and would like to find out from someone who has actually sold their own house as a veteran, who originated the VA loan or an experienced investor who may know exactly how this really works. Also what are the rules if I wanted to let someone assume the loan? I feel like this is a great intrest rate and would be open to any creative ways to sell as well. Thanks in advance for any help or suggestions.


Re: VA Qualifying Assumption Questions - Posted by Dave T

Posted by Dave T on June 07, 2007 at 14:49:53:

Your question has two components, loan assumption and restoration of entitlement.

As I understand the VA loan rules, any owner-occupant buyer who meets the lender’s qualifying criteria can assume your VA loan. The buyer does not need to be a veteran, but must meet all the credit and income criteria normally required for a new loan. The original borrower will remain liable for the loan, even though the buyer has assumed the loan.

Reinstatement of entitlement can be accomplished in two ways. First sell the property or otherwise pay off your VA loan. Then apply to the VA for reinstatment of entitlement if you want to apply for another VA loan.

The second way is to allow your VA loan to be assumed with a release of liability. In this case the veteranâ??s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.