va assumptions frequently asked questions

Did you know that all VA loans are assumable even if you are not a veteran with VA eligibility? There are two common misunderstandings when it comes to VA loan assumption:

  1. VA loans are no longer assumable and that
  2. If they were still assumable, only eligible veterans would be able to take advantage of the program.

The great news is that VA loans are one of the last remaining assumable loans. VA loan assumptions are not restricted to Veterans who have VA eligibility. Anyone can assume a VA loan as long as they meet the occupancy, credit and income guidelines as outlined by the Veterans Administration.

Facts about a VA Loan Assumption

  1. If you are interested in assuming a VA loan, you are required to apply for a loan assumption with the lender who currently services the mortgage.
  2. That servicing lender is allowed to charge a processing fee.
  3. If you are approved, you will be charged a .5% funding fee on the balance of the current loan.
  4. If you are NOT a Veteran the current Veteran borrower’s eligibility will remain with the loan to insure the VA Guaranty. The current Veteran borrower will not be able to use that portion of their eligibility until that debt is paid off. This is an extremely important piece of information for the seller/current owner to understand.
  5. If the borrower assuming the loan IS a Veteran, they are able to substitute their own eligibility for the current Veteran borrower’s, allowing the current Veteran borrow to have their entire eligibility restored.
  6. If a non-Veteran assumes a VA loan and defaults on that loan, the portion of the eligibility that was used to insure that loan will be unavailable to the original Veteran borrower until the paid claim debt is paid off to VA. With interest rates at all-time lows, VA assumptions will become more and more popular.

***As an agent, there will be a lot of attractive VA loans on your future listings. Don’t forget this important marketing detail in your current and future business!

Start using your VA Benefits and be on your way to owning a home of your own. Pre-qualify for a VA Loan Today.


VA Assumptions are for More than Just Veterans was written by Rebekah Radice.

 

 

 

 

 

 

 

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This post has been included in Colorado Real Estate News El Paso County, CO Real Estate News Colorado Springs, CO Real Estate News
Post is included in group: 1st Time Buyers
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Post is included in group: VA Loan Group

9 Comments on VA Assumptions are for More than Just Veterans

OCT
02
2011
487,581 Points 6 Featured Posts Outside Blog

Rebekah:

This is a very good post and grat reminder. Have a super weekend. 
10:27am • #1
194,319 Points 11 Featured Posts Called Shot Master

"Did you know", No I did not this is real good info.  Thanks as always for sharing, it's a good life.

 
11:39am • #2
347,036 Points 70 Featured Posts Outside Blog Called Shot Master

Do you tuck these up your sleeve for Sunday mornings? :)  Good morning, my friend . . .
11:49am • #3
381,856 Points 8 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

And here I thought assumptions had pretty much fallen by the way side when they can be a good oppotunity for a qualified buyer to get into a home.
11:55am • #4
584,863 Points 46 Featured Posts Outside Blog Called Shot Master

You have educated me today!  Thanks and make it a great day in all you do.
12:04pm • #5
260,522 Points 55 Featured Posts Outside Blog Called Shot Master

Thank you Alan and Michelle!  I hope you enjoy your Sunday!

Yes it is Joe - hope you're enjoying a beautiful weekend!

LOL..I may have a few of these tucked away just for the weekend.  You know me Mimi...always trying to spread the word about VA loans!

Teral - That is what most people thik.  They're surprised to find out the VA and FHA loans are bot still assumable.

John - An education on a Sunday??  Shame on me! ;)  We're supposed to have at least one day off from all this work stuff.
1:54pm • #6
584,667 Points 105 Featured Posts Outside Blog Called Shot Master

This is important information for home sellers. While some might not want to give up their own VA eligibility, for others it's a wonderful opportunity to make their home available to a larger pool of buyers.
2:41pm • #7
589,475 Points 31 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

the first home I ever bought was a VA assumption, I had to put more money down but my Dad assured me it was a good deal, 30 years ago I thought 15% was a good deal!!!
11:15pm • #8
OCT
04
2011
Outside Blog

If a VA loan is assumed by a non VA buyer, can the seller use the difference of his eligibilty to purchase a property VA?  Like when you personally own two properties under the same certificate?
5:06pm • #9

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Rebekah Radice Social Media Marketing, Management & Strategies

Burbank, CA

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Manager of Industry Engagement, Better Homes & Gardens RE

Address: Burbank, CA, 91505

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Author Bio: Rebekah Radice is a social media marketing, internet marketing and content marketing specialist. Rebekah Radice consults with business professionals to assist with their social media and blog marketing efforts.

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