Did you know that Veterans Affairs loan assumptions are not restricted to veterans who have VA eligibility? Anyone can assume a VA loan if they meet the occupancy, credit and income requirements set forth by the VA.
Here are some quick facts:
1. The prospective homebuyer must apply for a loan assumption with the servicing lender of the current mortgage.
2. The servicing lender may charge a processing fee.
3. The new borrower, if approved, will be charged a .5% funding fee on the balance of the current loan.
4. If the assuming borrower is not a veteran, the current veteran borrower's eligibility will remain with the loan to insure the VA Guaranty. The current veteran borrower will not be able to use that portion of their eligibility until that debt is paid off.
5. If the assuming borrower is a veteran, they can substitute their own eligibility for the current veteran borrower's, allowing the current veteran borrow to have their entire eligibility restored.
6. If a non-veteran assumes a VA loan and defaults on that loan, the portion of the eligibility that was used to insure that loan will be unavailable to the original veteran borrower until the paid claim debt is paid off to VA.
Mention this to your real estate agents. Ask them to double check their listings and offer the option as an additional way to generate leads. With interest rates at all-time lows, there will be a lot of attractive VA loans out there. This also makes a great Facebook post/reminder for your agents too.
Karen Deis is the publisher of
