Are you a veteran looking to buy or sell a home? Did you know that a VA home loan assumption is one of the most cost-effective methods to achieve this goal? However, many veterans need to be aware of this benefit, and the process can seem daunting. This guide will help you understand VA home loan assumptions and how they can benefit you.
What is a VA home loan assumption?
It is a process where a veteran assumes the responsibility of an existing loan of another veteran, including the interest rate and mortgage payments, when taking ownership of the home. This benefit offers lower interest rates, minimal closing fees, and an expedited transaction process, making buying or selling homes easier for veterans.
Assuming a VA home loan can provide many benefits for veterans:
- You get a locked interest rate, which can be lower than current rates.
- Assuming a VA loan saves time and money, simplifying the transfer and avoiding the lengthy sales process.
- The seller’s benefits can be restored fully, allowing them to use their full VA home loan entitlement.
Qualifying for VA Home Loan Assumption
To qualify you need to have enough residual income to cover the new monthly mortgage payment, submit evidence of on-time mortgage payments, and agree to take over all liabilities associated with the mortgage. You’ll also need to meet the credit requirements of the lender.
Why Haven’t I Heard of This Before?
Many veterans are not aware of VA home loan assumptions because of a combination of ignorance and greed. Loan officers, even self-proclaimed VA home loan experts, have little-to-no experience in the assumption arena. Also, mortgage loan officers do not make money off VA loan assumptions and, thus, will not promote products that reduce their business.
In conclusion, VA home loan assumption is a cost-effective method that can help veterans buy or sell homes. It offers locked interest rates, saves time and money, and allows sellers to restore their VA home loan benefits. To learn more about qualifying on this and how to finance your new home purchase in Hawaii,
Get in touch with Elias Halvorson to learn more and how he can help you finance the purchase of your new home in Hawaii. He has over a decade of experience in the industry and is one of the top brokers in this specialist field.