Updated 3 months ago on . Most recent reply
Inherited Home with VA loan – anyway to keep low rate?
My wife and I recently inherited a property from my parents' estate, and I'm trying to sort out both the legal and loan side of things. We've been renting the house from my parents for the past 8 years (can document payments). The property is worth about $1M with a $370k mortgage at a 3.6% VA loan rate (through PennyMac).
Since VA loans are tied to the veteran (my dad, who has passed), is there any legal or financial strategy to keep this existing loan instead of being forced to refinance into today's 6%+ rates?
This would make a huge difference in affordability and family cash flow. Has anyone dealt with an inherited property and a VA mortgage — and if so, is loan assumption or transfer possible through the estate process?
Would really appreciate insights from anyone with mortgage, estate, or legal experience around this.