VA Assumptions = Great Investment Opportunity

Real Estate Agent with JTR Property Network at Keller Williams Realty Red River

VA loans are a great avenue for not only the military and veterans but normal people too!  Especially for Investors!


In the Barksdale AFB area we saw a slight rise in homes values when the Global Strike Command moved in.  Now that they are almost all here we have seen prices begin to drop in the area.  They are not dropping dramatically, just back to the pre-Global Strike real estate market.  Unfortunately, that is putting a lot of military personnel in a tough situation.  A lot people bought during that time, and now are PCSing to other areas. The problem they are facing is that the value of their home is slightly less than their mortgage because they haven’t lived here long here to pay off the VA funding fee, let only build equity in their home.  Though this is an unfortunate situation for the military, it is a prime time for investors to step in and lend a hand. 


By assuming a VA loan, an investor can obtain great properties with no money down.  The only cost would be the transfer and perhaps a commission if you hired a Realtor to assist in the transfer.  


You are probably, thinking, "Hey!  Isn't that taking advantage of our veterans." and as a military spouse who has done "the move" I can confidently say "NO!"  This process which does entail the veteran leaving his VA certificate with the loan (If the assumer is not a veteran with eligibility), but it will alleviate the stress that comes along with being upside down in a mortgage or in a situation where you cannot afford to pay a professional to sell your home without bringing money to the closing table. 


Everyone in the transaction has to understand what is happening and the implications of this kind of transaction, but most importantly, our military can move on without the threat of foreclosure or unwillingly becoming a long distance landlord; and the investor can get into properties cheaper than they could ever have.


Rebecca Radice wrote a great article on the Facts about VA Assumptions you should check out for more information!

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