Deal Analysis - Subject To on VA loan

[Mike Cartmell]

Hi All,

I have come across a property that the seller will sell subject to the existing mortage. He owes approximately 140k and its worth around 150k. Not much equity but the existing financing makes it attractive. It has a fixed 3.25% mortgage with a principle and interest payment of $621. Market rent is about $1200. This seller does not want any cash but simply wants me to take over the payments.

Is this something I should pursue?

Are there any issues to look out for with a sub-to on a VA loan?

Thanks in advance,

Mike

[David Scott]

Bill is right.

Plus, you also might want to check over the loan you are assuming very thoroughly. I have a VA loan that is NOT assumable, unless you qualify for a VA loan. If this is the same loan he has then it's a no go.