Getting a loan assumption from the Department of Veterans Affairs (VA) can save you money and help you keep your home.
If you’re a veteran, you may be eligible for a VA loan assumption. This type of loan allows you to transfer your loan to another person, typically with little or no money down. The new borrower assumes responsibility for the loan and makes all future payments.
In this article, we’ll discuss the VA loan assumption process, VA loan assumption requirements, and how to get a VA loan assumption.
What Is a VA Loan Assumption and How Does it Work?
A VA loan assumption is when a new borrower takes over the mortgage payments and responsibilities of an existing VA loan. This can be an attractive option for borrowers who want to avoid the hassle and expense of getting a new mortgage, or who want to take advantage of the low interest rates and terms available on VA loans.
The Benefits of a VA Loan Assumption
VA loan assumptions come with a few key benefits. First, they can help you avoid paying any mortgage closing costs. Second, they can help you get a lower interest rate on your mortgage, since the assumption process is often quicker and easier than getting a new mortgage. Finally, VA loan assumptions can help you build or improve your credit score, since the lender will report the assumption to the credit bureaus.
VA Loan Assumption Requirements
There are a few requirements you’ll need to meet in order to qualify for a VA loan assumption. First, you’ll need to have an existing VA loan that is in good standing. Second, the new borrower will need to be eligible for a VA loan. Finally, the new borrower will need to have the financial resources to make the monthly payments on the mortgage.
If you meet these requirements, a VA loan assumption can be a great way to get a new mortgage with little or no money down. For more information on VA loan assumptions, consult a qualified lender or the Department of Veterans Affairs.
There are a few more requirements that must be met in order to qualify for a VA loan assumption:
The existing loan must be current, with no more than two 30-day late payments in the last 12 months
The new borrower must meet all VA eligibility requirements
The property must be owner-occupied
You must get approval from the lender or servicer of the loan
Other than this, the process for getting a VA loan assumption is relatively simple.
How to Get Your VA Loan Assumption Approved
In order to get your VA loan assumption approved, you’ll need to meet a few requirements. First, you’ll need to find a new borrower who is willing to assume your mortgage payments and responsibilities.
This person will need to complete a credit check and provide proof of income and employment. Second, you’ll need to obtain a signed agreement from the original borrower, which releases you from all future liability on the loan. Finally, you’ll need to provide a copy of the assumption agreement to your lender.
The Steps Involved in Getting a VA Loan Assumption
If you’re interested in getting a VA loan assumption, there are a few steps you’ll need to take. First, you’ll need to find a qualified borrower who is interested in assuming your mortgage. This person will need to meet the credit and employment requirements set by your lender.
Next, you’ll need to obtain a signed agreement from the original borrower, which releases you from all future liability on the loan. Finally, you’ll need to provide a copy of the assumption agreement to your lender.
Get started today by finding a qualified borrower and obtaining a signed agreement. Then submit your application to your lender for final approval. With a VA loan assumption, you can enjoy all the benefits of a new mortgage without any of the hassle.
The Bottom Line
A VA loan assumption can be a great way to save money on your mortgage and build or improve your credit score. To get your assumption approved, you’ll need to find a new borrower and obtain a signed agreement from the original borrower. Once you’ve done that, you’ll need to provide a copy of the assumption agreement to your lender.
