Kennewick, WA · Member since 2012 · 2 posts · 0 votes
I have a property coming available that I am looking to wholesale or put a tenant buyer in that the existing mortgage is a VA loan. There is something in the back of my head that remembers something sticky with VA loans.
Do you know if there are any pitfalls when dealing with VA loans?
We have a VA loan on our primary residence, thanks to Hubby's service in the Navy. The first thought that comes to mind is VA loans are assumable BUT the new buyer must be vetted through the VA first. Not sure how you will work this with a tenant buyer or wholesaling it.. I guess you could try to do it w/o informing the VA but they have due on sale clauses just like any other loan.
If you are able to do it, I would think you can add a lot of value by marketing the property to Veterans . . . as a loan assumed by another Vet restores the VA benefit back to the original loan loan (normally it's restored when the loan is refied OUT of a VA loan or sold). They (VA) just substitute benefit B for benefit A.