When you buy a house, you do so under the assumption that you’ll continue making payments on your mortgage until the end of the loan’s term or you decide to sell the property. Though this is what happens for the majority of homeowners, there may come a time when you need to transfer the mortgage to someone else. But what happens if you’ve financed your home with a VA loan and met all the VA loan requirements set forth by your lender and still need to transfer the loan to someone else?
VA Loans Are Transferable
Believe it or not, VA loans are transferable as long as your lender allows what’s called loan assumption. This happens when your lender determines that another person meets the VA loan requirements and could qualify for a loan on their own. If approved, the other person assumes financial responsibility for the mortgage.
The biggest benefit of VA loan assumption is that the person assuming the loan doesn’t have to be a qualified veteran or current service member. As long as the person assuming the loan meets the lender’s financial VA loan requirements, they’ll be approved and able to take over the loan.
Not All Lenders Allow VA Loan Assumptions
It’s up to the lender to determine whether or not they want to allow VA loan assumptions in the first place. Some are able to process the transfer quickly and easily. However, others refuse to altogether. If you’re considering transferring your mortgage to someone else, the best thing you can do is to speak with your lender. Let them know what’s going on and see if the transfer is even a possibility. If it is, they’ll be able to guide you through the process and let you know what they need to get the ball rolling.
It’s Always Best to Compare Your Options
Remember, interest rates fluctuate. If you’re thinking of assuming a VA loan, even if you meet the VA loan requirements, it’s best to compare your options. You may end up saving money by taking out an entirely new loan or applying for a conventional mortgage, depending on your financial situation.
Get More Info Today
Whether you’re considering a VA loan assumption and want to find out more about the current VA loan requirements or want to get quotes on conventional mortgages, Mortgage Solutions Financial is here to help. Contact our team to discuss your unique situation today.