VA Eligibility on an Assumable Mortgage

If you currently serve in the military or you previously served, one of the benefits you can take advantage of is the home loan program. If you already have a VA loan, you can also use it as a selling tool when you sell your home. By allowing another buyer to assume your mortgage, you can sometimes improve the chances of selling. Before allowing someone to assume, you must consider how it can affect your VA loan eligibility.

When you allow someone else to assume your loan, it can affect your eligibility for future VA loans. If you allow another veteran to assume your mortgage loan, his eligibility will essentially be substituted for your own eligibility. This will free up your eligibility to get another VA loan. However, if you allow a citizen who was not in the military to assume your loan, then it can keep you from being able to get another VA loan.

One of the potential disadvantages of allowing another individual to assume your loan is that you could technically still be responsible for the payments. If you have a mortgage loan that was created before March 1, 1988, you can allow anyone to assume it without going through any credit checks or application process. If that person defaults on the loan, you would be responsible for the debt and it would make it impossible to get another VA loan.

If you are allowing another individual to assume your loan, you may want to make sure that a novation clause is signed. A novation is a clause that releases you from personal liability on the mortgage. With mortgages created after 1988, this is usually a standard feature of the contract provided by the lender. However, you should always check to make sure that it is included. Otherwise, it could negatively affect your VA mortgage loan eligibility in the future.

VA mortgage loan assumptions can be popular when interest rates rise. If homebuyers cannot get decent interest rates in the market, they can assume a mortgage that has a low interest rate attached to it and get a lower monthly payment. If you have a VA loan with a low interest rate, you can use this as a marketing tool when trying to sell your house. Just make sure that you are working with a quality buyer if you have an older loan that does not require lender approval.

VA Loan Qualifications and Basic Eligibility Requirements
www.veteranloancenter.com/valoanqualifying.htm
VA loans can be a viable option for those who are eligible. There are relatively strict guidelines as to who can obtain a loan with VA financing, and the first step ...
Eligibility - Home Loans - U.S. Department of Veterans Affairs
www.benefits.va.gov Purchase & Cash-Out Refinance Loans
Eligibility. You must have suitable credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan.
VA Loan Eligibility: Bonus Entitlement Military.com
valoan.military.com VA Loans
All VA-eligible veterans start with basic entitlement of $36,000 enough guarantee for a loan of up to $144,000. Nowadays, many homes cost more than that.
VA Loan Information - VA Loans for Veterans and Active Military
www.valoans.com
Learn about the VA loan program -- VA Loans and VA ARM loans for veterans and military personnel.
Loan Limits - Home Loans - U.S. Department of Veterans Affairs
www.benefits.va.gov Purchase & Cash-Out Refinance Loans
Loan Limits. VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually ...
VA Streamline Refinance : The VA IRRRL Mortgage Program
themortgagereports.com/10592/va-streamline-refinance
Update : Explanation of the VA mortgage loan program including Q&A, the VA Streamline Refinance (IRRRL), and today's VA mortgage rates.
VA Home Loans from VA Mortgage Center.com
www.vamortgagecenter.com
VA Mortgage Center.com - Prequalify online for a $0 down VA Loan through VA Mortgage Center.com. At VA Mortgage Center.com, our specialists make the mortgage
VA Home Loans are Assumable Mortgages
www.varealty.com/home-loans/assumable--mortgages.html
VA Loans are Assumable What is an Assumable Loan? An assumable mortgage loan is one that allows a new home buyer to take over the obligation of the seller's loan
Can Someone Assume My VA Loan - EzineArticles.com
ezinearticles.com Finance VA Loans
Nov 07, 2006 If you are selling a home or have sold a home that was financed with a VA Loan, you should read this article.
Easy-To-Read Guidelines : Confirm Your VA Mortgage Eligibility
themortgagereports.com/13120/va-mortgage-requirements-for-eligible...
The Department of Veterans Affairs home loan is arguably the top mortgage program for eligible U.S. buyers and existing U.S. homeowners.