Posted by RR Smith on February 07, 2000 at 18:21:08:
The VA Loan guarantee is supplied by the VA to guarantee that the loan payments will be made to the bank/mortgage company that makes the loan. It is transferable but the people that assume the loan (guess what?) have to requalify for the mortgage with the VA and the people that wrote the mortgage?(even though the VA GUARANTEES THE PAYMENTS). So my point is that it truly is not a type of mortgage per se but a GUARANTEE WITH PROVISIONS (good provisions, low down, no per payment penalty, etc.)on top of another mortgage that can be ?packaged? along with several hundred other mortgages and sold as a group to investors as a commodity. After you sell your loan guarantee the VA will happily issue you another one and you can sell that one too (if your into pain and suffering)etc. etc.
Mike,
There are no consequences except that you’ve tied up your VA loan. Check out the VA website for details.
The VA just requires that you use the loan to purchase a home that you intend to occupy. Since you occupied it, you are in the clear and can lease it. If you are moving far from your home I would suggest finding a good property manager.