VA loan assumption question?
Being offered a VA loan assumption and not sure where to start. Has anyone had experience this and usually what it entails? I know I have to get approved
Are you looking to assume someone else's VA loan, or someone else will be assuming yours?
The person assuming the loan must have available VA entitlement, as they essentially will be ‘swapping' whose VA entitlement is being utilized.
Also, the person assuming the VA loan will need to be prepared to pay the ‘seller' the equity amount in the home. For example, if the home is worth $300K but there is only $200K remaining on the VA loan, the ‘seller' will require $100K at the time of assumption to be made whole.
It’s more complex and nuanced than that (approval process, etc), but those are two typical sticking points.
I can tell you anything you want to know about VA assumptions. Our company, Assumption Solutions consults on and processes VA & FHA mortgage loan assumptions between home buyers, sellers, and real estate agents. We have tons of resources at assumptionsolutions.com as well.
@Joel Allen
When you mentioned pay the seller the equity, can the seller finance equity amount?
WD
#2 All Forums Contributor
- Investor
- Austin, TX
Get a third party authorization signed by the seller and start going through the assumption process with the lender.