Subject to with a VA loan

[Sean Sullivan]

Hi Everyone,

I have a seller with a VA loan who is willing to sell the property to me on a subject to basis. She's not concerned with taking out another loan so, the entitlement limits are not a concern. My difficulty is in finding a title company that will handle this transaction. I'm in Northern Nevada if anyone has any recommendations. - TIA

[Wesley Pittman]

Hey Sean, why are you looking at doing subject to? VA loans are assumable so you can just formerly take over the loan. There entitlement stays on the property all the same but it's cleaner because you don't have to worry about due on sale or managing the sellers insurance, power of attorney, etc. You don't have to owner occupy or anything like that either. Just need to meet the loan guidelines for credit, debt to income, etc. to assume. They don't do an appraisal so condition can be rough.

We recently helped a seller in Fallon that had an unfinanceable property, but she had a VA loan with a good rate. It wasn't a good enough deal for us to take down so we listed it for her and found her a buyer willing to assume the loan which allowed her to get way more for the property than if it was being sold in as-is condition.