Just wanted to say thanks for ACTUALLY going into detail on how this process works. Every other source of information I’ve looked at regarding VA loan assumptions has only the most basic details. I have a question. Is it important for the real estate agent to be familiar with this process, or does it mainly fall on the lender to manage the assumption? I’ve spoken with a few very reliable agents, but they don’t have experience with this form of financing.
If ur able to assume someone's VA loan, does the transfer count as a sale? I'm looking to buy in SoCal and tho property taxes r only 1%, it's still a ton of money when the property costs $1M+. Would be great if the property tax doesn't get reappraised at the new sale value😬🙏🏽🤞🏽
If you are a Veteran and you get the entitlement transferred to your name I would THINK you could streamline asap, since the loan itself was seasoned for at least 6 payments and 210 days. This seasoning law is newer and there are some nuances that may require you to make 6 payments yourself too. So at the longest you would have to wait would be 210 days from the first payment and having made 6 timely payments. That said, you may be able sooner. If you are NOT a veteran you can do a conventional refi as soon as you want.
selling the home is not ever impacted by your rate because the person buying the home gets the new current rates. If you find someone to assume the loan, that could be helpful but truly not many people assume loans but it is a good idea to look into.
Good video.... I'm a vet trying to do this right now, but I still cant find out how to even start the process. The loan servicer (BSI Financial) kept me on hold for over an hour......wont return my calls
@@lowvarates Trying to let someone assume mine.....My loan was sold(?) to BSI Financial last year and they wont return any of my phone calls or emails.....
How do I find a VA asumable loan? I'm a Disabled veteran with 100% disability and SSDI but I had a bankruptcy that was discharged May 2020, I know I have to wait until May 2022, this will be my 2nd VA entitlement.
Depending on the type of bankruptcy in the circumstances you do not have to wait that long. I think you should give us a call so we can go over the details
I have an 87 year old friend selling a house with a VA loan. His lender is telling him that his loan is not assumable. You touched on something saying lenders don't have to let the loan be assumed now? Can you give me more information on this? He was counting on this as a selling point for his home. I was told he may be able to go directly to the VA to do it and get around the lender.
100% of all VA loans are assumable. If the lender is saying it is NOT assumable they may be committing loan fraud. I would call them up and firmly use those words, "loan fraud" and find out why they say the loan is not assumable. Now maybe they are not approving the assumption, which is totally different.
Im laughing because you said rates might go up in the next few years. They sure did. Does the property tax stay the same on the payment? Do we pay the same exact payment after assuming the loan if I pay more for the house now?
Taxes go up and down so there is no way for me to say but taxes will NOT stay the same over time. You will pay the exact PI payments assuming it is fixed rate mortgage. Hope this helps.
Real estate agent here in Texas here I have a few questions, If I have a home listed for $500,000 the amount of the current loan is $400,000. The VA buyers wants to assume the loan, they have the$100K cash to pay the difference at closing. They still provided a 1 to 4 contract to sell the home with a loan assumption addendum. Therefore this mean they are in fact selling this home and closing at title company etc. The Texas (TREC) loan assumption addendum states: "Your liability to pay the notes assumed by Buyer will continue unless your obtain a release of liability from the noteholders. If you are concerned about future liability you should the TREC Release Of Lability Addendum." Is it typical that I get this signed or does the lender provide this upon approval? Is having this signed just extra security if noteholder does not provide this release upon approval? Also how do we make sure VA buyer substitutes their entitlement, does this release of liability form automatically ensure that? Who contacts VA to do the substitution, when does either the seller or buyer to this, after closing or prior to? Also the home insurance. Doesn't the buyer have to get this in their name, can they use any insurance company? Does the buyer contact the insurance company after the assumption approval or during the process to provide proof of insurance? Does the seller give notice to buyer they are canceling their insurance after closing how does this typically work? Is the buyer allowed to provide their documentation directly to the the lender or does the seller have to collect all of this and provide to the lender? Thank you for the video and additional information you can provide.
So we did a lot of research on this for you. In short, all of this must go through the servicer who is collecting payments currently on the mortgage trying to be assumed. They must approve it all. The only reason to do an assumption would be that low rate. If the person assuming is a veteran who also has VA home loan eligibility, then yes there is a form that would be completed transferring the entitlement out of the current vet's name and into the name of the vet assuming the loan. Hope this helps.
Thanks for the great video. I just purchased a VA assumable home, and I was wondering if I still need to wait a year to purchase another home with a VA loan.
It is not a black and white answer, you would need to move into the new home you want to buy. You can only buy a home with your VA loan, if the home is going to be your primary residence. Please contact us on our site and we can help you.
I wanted to ask you a question, In 2019 I transferred a va loan mortgage to a person. I was having financial difficulties and the person who i transfer the loan convinced me to transfer the property without the consent of the bank, and give some time or few months to pay off the entire loan and get rid of the debt. The problem after a while the person never released me from the mortgage loan and everything stayed in my name, in the contract he dont put a time limit to release me from the loan I fear that everything will stay the same for the life of the loan. I wanted to know if anything could be done about it. Sorry for mi english my main language is spanish
No need to say sorry about your language. That is a tough situation to be in. I want to make sure I understand. You moved out of the home, let someone else take over the mortgage payments for you, but you never actually sold the home. This person, stopped making your payments for a while (this may have hurt your credit). Does this sound correct? I want to understand that first.
@@lowvarates it's a possession tactic that a lot of investors use. Buyer and seller execute sale, but don't notify the lender. New buyer continues making the payments. Lender normally doesn't care, as they're receiving payments, but do retain the option to call the loan due, if it chooses to, but rarely do. Seller went into the deal, with the "verbal" promise that the buyer, will refinance into their own name down the road, reading the seller of all liabilities, but hasn't done so yet. Chances are that the buyer isn't going to refinance any time soon, as current rates are likely higher that the rate in the mortgage, plus he has no financial liability as it stands. The mistake l see in all this, was the seller's negligence in setting a time limit on "assuming" the current loan in writing.
Very odd question but I’ll try to be clear. I have used 568k of my va loan. Do your eligibility amount go up the more you pay off? So if I pay off 100k would 100k become available? Second question what if I have 200k available and I want assume a 500k Va loan. Would I use 200k of my eligibility and the seller tie up 300k? Or is it even possible to assume a Va loan if you don’t have the total amount needed available?
You are maxed on the amount of entitlement if its not your only loan. If you have a 2nd loan, they will go off the county loan limits. You don't get credit for what you have paid down. The original note amount is tied up to the entitlement until its paid in full. You will need to not have any used up entitlement to assume a 500K loan.
It's 2022. Covid is slowing down. The FED is raising rates. I just found a home with a 2.25% assumable v/a mortgage. As a disabled vet, do I still get waivers, and does a new inspection and appraisal need to be made on the house? I'm going to view it tomorrow, fingers crossed!
If I want to just assume my fathers VA loan at the remaining cost with 27 years remaining does that help speed up the process? He’s likely to pass soon and isn’t worried about the liability and will continue to stay in the home with us. I know it sounds dark but he thinks it more practical to set everything up now since he already planned on leaving us the house.
Yes Assuming the loan in this situation seems like a good idea. You would need to contact the lender that collects payments each month, explain the situation and they will help approve the assumption. I am sorry for the personal side of this, I am sure it is very difficult.
Excellent video! I had a couple questions. After I assume the loan, how do I report it on my taxes? Do I report it as a home purchase? Second, can I change the home insurance associated with the house or am I stuck with theirs? Thank you Low Va Rates!
no way to get around primary occupancy? I want to assume my dad's loan. He'll stay in the property, and I'll occupy the home 40% of the time. Plus, I'm in a different state.
Great video- thank you. My husband and I are both veterans and we both own homes (just got married). We need to restore my eligibility and Buy a new home in another state with high home prices. We plan to restore my eligibility since I have the lower cost home. Can my husband assume my home loan, so we can keep the home, restore my eligibility, and later move to another state and buy a new home with my eligibility fully restored ?
You can do it! That is a bit complex, but can be done. Will the home you buy next once all entitlements are moved around/restored, be your primary residence?
Are you saying around the five minute mark that a customer can use any lender or doesn’t have to be the servicer of the loan? Right now I have a VA loan with Planet. I could redirect a potential buyer to Low Va Rates??
A friend of mine husband passed away who had a VA loan. The VA loan was in his name only. She now wants to sell the house I told her that I was willing to buy it so how do we move forward when the house is not in her name. I'm willing to give her some money so she could move she just wants out of the house. Thanks
well I would assume the home was left to her in the will, so whether she is on the home loan or not, she likely has inherited the home. The bank holding the mortgage note will gladly allow her to sell it once the home is rightfully hers. Right now you are dealing with an estate issue so that needs to be handled first.
@@lowvarates she has a mortgage on the house and someone said she needs an affidavit of heirship. She does not want to wait the 90 days it may take to approve the assumption she wants to move quickly so I think we will just go through the title company I told I have to protect my interest as well if anything happens to her and make sure that she can sell it legally and clearly. What are your thoughts thanks
@@tammybrackens980 again the title company, (this is my opinion and understanding) cannot do anything for you. Her husband had a legal obligation to make mortgage payments until the house is paid in full. Now that he has passed, if she continues to make the payments (ableit he is deceased) the bank/lender is not going to do a thing, as long as they are getting paid, its all good. If payments stop, then they will foreclose. If she wants to sell the home to you or have it assumed, well the sale cannot be done until she legally owns the home and that seems like a 90 day process. To get the loan assumed by you or whoever, that must be approved by the lender the widow is now making payments to.
So, short question. The VA loan is currently at rocket mortgage (quicken loans). The borrower is deceased. The probate is opened as well. Would assumption a painful process to do it or they will approve it quickly once credit requirements met? Is this really going to take 90 days?
90 days does not seem like that long of a time for an assumption. We are not a service or so we do not do assumptions. However they take them out as long as any normal Loan would
So besides the .5% and the assumption fee. Should I be paying any other fees at closing? I’m in the process right now and I have quite a bit more fees than you discuss here. This loan is a VA to VA. Any insight on this would be greatly appreciated.
We would love to help you and give you our quote. You would see the VA Funding Fee of .5% and then normally 2-3% in other fees and charges like Title, recording, reconveyance, etc. If you are paying discount points to buy your rate lower that could come into play too.
We are looking at a house for sale with an assumption. However they are asking more for the house than what is left on the loan. They have $309k left but asking $450k. How does this work?
I’ve never heard of someone trying to assume a loan for more than what the balance of the loan is for. It would seem to me you would need to assume their loan And also pay them the difference
That’s a bit harder. VA loans are achievable. It’s not really the property that is assumable it is the note, or the loan. That said, it would almost always include taking residency in the property. I would go to google and look around for a list of assumable notes
Looks like you correctly predicted interest rate hikes. I’m selling in about 9 months. This is the current option I’m leaning toward.
We are not always right but I guess we were this time. When you are ready to buy a new home please reach out.
Have you seen how much higher they are continuing to go?
He said 4s or 5s, it's over 7 now. 🥴
Great video with clear concise info on assuming VA loans! How can I find out which sellers have VA loans? Is there a way for realtors to search MLS?
Thank you for recognizing us. If you are a veteran, Thank you for your service! God bless!
I am not a Veteran, but support you so much. Thank you for all you do!
“Someone’s buying a home in 2022, 2023, they might be in the 4’s and 5’s again” Meanwhile here we are at 8% 😭
Ya rates are very ugly currently.
Just wanted to say thanks for ACTUALLY going into detail on how this process works. Every other source of information I’ve looked at regarding VA loan assumptions has only the most basic details.
I have a question. Is it important for the real estate agent to be familiar with this process, or does it mainly fall on the lender to manage the assumption? I’ve spoken with a few very reliable agents, but they don’t have experience with this form of financing.
First off THANK You for the kind words and you are very welcome. The agent will not be involved really so it is more of a lender thing., Best of luck
@@lowvarates thanks so much, definitely giving me the motivation to pursue this!
If ur able to assume someone's VA loan, does the transfer count as a sale? I'm looking to buy in SoCal and tho property taxes r only 1%, it's still a ton of money when the property costs $1M+. Would be great if the property tax doesn't get reappraised at the new sale value😬🙏🏽🤞🏽
When the Deed changes it’s a new owner and would be considered a sale if its an assumption or a traditional purchase.
Here we are, Jan (aka "sometime") 2022 and rates are already rising
Yes they are rising pretty quickly. However, rates are still great. What are you wanting to accomplish?
Once you assume a va loan how quickly can you refinance ?? Let's say the person has a 5% loan rate and you want to drop it to 3% or better??
If you are a Veteran and you get the entitlement transferred to your name I would THINK you could streamline asap, since the loan itself was seasoned for at least 6 payments and 210 days. This seasoning law is newer and there are some nuances that may require you to make 6 payments yourself too. So at the longest you would have to wait would be 210 days from the first payment and having made 6 timely payments. That said, you may be able sooner. If you are NOT a veteran you can do a conventional refi as soon as you want.
I have a VA 2.87 rate how likely would my home sell or be assumed with this method?
selling the home is not ever impacted by your rate because the person buying the home gets the new current rates.
If you find someone to assume the loan, that could be helpful but truly not many people assume loans but it is a good idea to look into.
Good video.... I'm a vet trying to do this right now, but I still cant find out how to even start the process. The loan servicer (BSI Financial) kept me on hold for over an hour......wont return my calls
are you trying to assume a loan or allow someone to assume your loan?
@@lowvarates Trying to let someone assume mine.....My loan was sold(?) to BSI Financial last year and they wont return any of my phone calls or emails.....
Ty for the very good presentation on hugely important topic
Thank you for the kind words!
How do I find a VA asumable loan? I'm a Disabled veteran with 100% disability and SSDI but I had a bankruptcy that was discharged May 2020, I know I have to wait until May 2022, this will be my 2nd VA entitlement.
Depending on the type of bankruptcy in the circumstances you do not have to wait that long. I think you should give us a call so we can go over the details
I have an 87 year old friend selling a house with a VA loan. His lender is telling him that his loan is not assumable. You touched on something saying lenders don't have to let the loan be assumed now? Can you give me more information on this? He was counting on this as a selling point for his home. I was told he may be able to go directly to the VA to do it and get around the lender.
100% of all VA loans are assumable. If the lender is saying it is NOT assumable they may be committing loan fraud. I would call them up and firmly use those words, "loan fraud" and find out why they say the loan is not assumable. Now maybe they are not approving the assumption, which is totally different.
Jeez. Spot on with the interest raise
We are not always correct but we try
Spot on about Fed raising rates 7:15 BOOM
Looking at a 2.25 right now.
Great video!!!
Boom! Glad you like it
Im laughing because you said rates might go up in the next few years. They sure did. Does the property tax stay the same on the payment? Do we pay the same exact payment after assuming the loan if I pay more for the house now?
Taxes go up and down so there is no way for me to say but taxes will NOT stay the same over time. You will pay the exact PI payments assuming it is fixed rate mortgage. Hope this helps.
Real estate agent here in Texas here I have a few questions, If I have a home listed for $500,000 the amount of the current loan is $400,000. The VA buyers wants to assume the loan, they have the$100K cash to pay the difference at closing. They still provided a 1 to 4 contract to sell the home with a loan assumption addendum. Therefore this mean they are in fact selling this home and closing at title company etc.
The Texas (TREC) loan assumption addendum states: "Your liability to pay the notes assumed by Buyer will continue unless your obtain a release of liability from the noteholders. If you are concerned about future liability you should the TREC Release Of Lability Addendum."
Is it typical that I get this signed or does the lender provide this upon approval? Is having this signed just extra security if noteholder does not provide this release upon approval?
Also how do we make sure VA buyer substitutes their entitlement, does this release of liability form automatically ensure that? Who contacts VA to do the substitution, when does either the seller or buyer to this, after closing or prior to?
Also the home insurance. Doesn't the buyer have to get this in their name, can they use any insurance company? Does the buyer contact the insurance company after the assumption approval or during the process to provide proof of insurance? Does the seller give notice to buyer they are canceling their insurance after closing how does this typically work?
Is the buyer allowed to provide their documentation directly to the the lender or does the seller have to collect all of this and provide to the lender?
Thank you for the video and additional information you can provide.
So we did a lot of research on this for you. In short, all of this must go through the servicer who is collecting payments currently on the mortgage trying to be assumed. They must approve it all. The only reason to do an assumption would be that low rate. If the person assuming is a veteran who also has VA home loan eligibility, then yes there is a form that would be completed transferring the entitlement out of the current vet's name and into the name of the vet assuming the loan. Hope this helps.
Can you do this with a family member like a brother in law???
anyone can assume the loan if the lender approves, YES!
Thanks for the great video. I just purchased a VA assumable home, and I was wondering if I still need to wait a year to purchase another home with a VA loan.
It is not a black and white answer, you would need to move into the new home you want to buy. You can only buy a home with your VA loan, if the home is going to be your primary residence. Please contact us on our site and we can help you.
I wanted to ask you a question,
In 2019 I transferred a va loan mortgage to a person. I was having financial difficulties and the person who i transfer the loan convinced me to transfer the property without the consent of the bank, and give some time or few months to pay off the entire loan and get rid of the debt. The problem after a while the person never released me from the mortgage loan and everything stayed in my name, in the contract he dont put a time limit to release me from the loan I fear that everything will stay the same for the life of the loan.
I wanted to know if anything could be done about it.
Sorry for mi english my main language is spanish
No need to say sorry about your language. That is a tough situation to be in. I want to make sure I understand. You moved out of the home, let someone else take over the mortgage payments for you, but you never actually sold the home. This person, stopped making your payments for a while (this may have hurt your credit). Does this sound correct? I want to understand that first.
@@lowvarates sounds more like someone took possession of his home, subject-to the mortgage.
@@RichRotorhead not sure I follow
@@lowvarates it's a possession tactic that a lot of investors use. Buyer and seller execute sale, but don't notify the lender. New buyer continues making the payments. Lender normally doesn't care, as they're receiving payments, but do retain the option to call the loan due, if it chooses to, but rarely do.
Seller went into the deal, with the "verbal" promise that the buyer, will refinance into their own name down the road, reading the seller of all liabilities, but hasn't done so yet.
Chances are that the buyer isn't going to refinance any time soon, as current rates are likely higher that the rate in the mortgage, plus he has no financial liability as it stands.
The mistake l see in all this, was the seller's negligence in setting a time limit on "assuming" the current loan in writing.
Very odd question but I’ll try to be clear. I have used 568k of my va loan. Do your eligibility amount go up the more you pay off? So if I pay off 100k would 100k become available? Second question what if I have 200k available and I want assume a 500k Va loan. Would I use 200k of my eligibility and the seller tie up 300k? Or is it even possible to assume a Va loan if you don’t have the total amount needed available?
You are maxed on the amount of entitlement if its not your only loan. If you have a 2nd loan, they will go off the county loan limits. You don't get credit for what you have paid down. The original note amount is tied up to the entitlement until its paid in full. You will need to not have any used up entitlement to assume a 500K loan.
It's 2022. Covid is slowing down. The FED is raising rates. I just found a home with a 2.25% assumable v/a mortgage. As a disabled vet, do I still get waivers, and does a new inspection and appraisal need to be made on the house? I'm going to view it tomorrow, fingers crossed!
that all depends on the lender you are assuming the loan from. Each lender approves the assumption. Best of luck!
If I want to just assume my fathers VA loan at the remaining cost with 27 years remaining does that help speed up the process? He’s likely to pass soon and isn’t worried about the liability and will continue to stay in the home with us. I know it sounds dark but he thinks it more practical to set everything up now since he already planned on leaving us the house.
Yes Assuming the loan in this situation seems like a good idea. You would need to contact the lender that collects payments each month, explain the situation and they will help approve the assumption. I am sorry for the personal side of this, I am sure it is very difficult.
Excellent video!
I had a couple questions.
After I assume the loan, how do I report it on my taxes? Do I report it as a home purchase?
Second, can I change the home insurance associated with the house or am I stuck with theirs?
Thank you Low Va Rates!
I cannot give tax advice and I may be wrong, but an assumption is not a SALE so i would think no, but ask a tax advisor. Yes you can change insurance.
no way to get around primary occupancy? I want to assume my dad's loan. He'll stay in the property, and I'll occupy the home 40% of the time. Plus, I'm in a different state.
Not if you go VA, no.
Great info! Thank you!
Glad you enjoyed it!
Great video- thank you. My husband and I are both veterans and we both own homes (just got married). We need to restore my eligibility and Buy a new home in another state with high home prices. We plan to restore my eligibility since I have the lower cost home. Can my husband assume my home loan, so we can keep the home, restore my eligibility, and later move to another state and buy a new home with my eligibility fully restored ?
You can do it! That is a bit complex, but can be done. Will the home you buy next once all entitlements are moved around/restored, be your primary residence?
Are you saying around the five minute mark that a customer can use any lender or doesn’t have to be the servicer of the loan? Right now I have a VA loan with Planet. I could redirect a potential buyer to Low Va Rates??
For an assumption, you must work with the servicing lender. If Planet services the loan, then they must approve the assumption
Does the home have to be your primary occupancy when you assume the loan?
That is up to the lender who services the loan now but I bet they all say yes it does
A friend of mine husband passed away who had a VA loan. The VA loan was in his name only. She now wants to sell the house I told her that I was willing to buy it so how do we move forward when the house is not in her name. I'm willing to give her some money so she could move she just wants out of the house. Thanks
well I would assume the home was left to her in the will, so whether she is on the home loan or not, she likely has inherited the home. The bank holding the mortgage note will gladly allow her to sell it once the home is rightfully hers. Right now you are dealing with an estate issue so that needs to be handled first.
@@lowvarates she has a mortgage on the house and someone said she needs an affidavit of heirship. She does not want to wait the 90 days it may take to approve the assumption she wants to move quickly so I think we will just go through the title company I told I have to protect my interest as well if anything happens to her and make sure that she can sell it legally and clearly. What are your thoughts thanks
@@tammybrackens980 again the title company, (this is my opinion and understanding) cannot do anything for you. Her husband had a legal obligation to make mortgage payments until the house is paid in full. Now that he has passed, if she continues to make the payments (ableit he is deceased) the bank/lender is not going to do a thing, as long as they are getting paid, its all good. If payments stop, then they will foreclose. If she wants to sell the home to you or have it assumed, well the sale cannot be done until she legally owns the home and that seems like a 90 day process. To get the loan assumed by you or whoever, that must be approved by the lender the widow is now making payments to.
So, short question. The VA loan is currently at rocket mortgage (quicken loans). The borrower is deceased. The probate is opened as well. Would assumption a painful process to do it or they will approve it quickly once credit requirements met? Is this really going to take 90 days?
90 days does not seem like that long of a time for an assumption. We are not a service or so we do not do assumptions. However they take them out as long as any normal Loan would
Question in an assumption would the veteran buyer also gain the equity of the home?
yes
So besides the .5% and the assumption fee. Should I be paying any other fees at closing? I’m in the process right now and I have quite a bit more fees than you discuss here. This loan is a VA to VA. Any insight on this would be greatly appreciated.
We would love to help you and give you our quote. You would see the VA Funding Fee of .5% and then normally 2-3% in other fees and charges like Title, recording, reconveyance, etc. If you are paying discount points to buy your rate lower that could come into play too.
@@lowvarates I thought you’re stuck with the current lender for an assumable loan.
Can I sell my house for a higher price than what owe and still have someone assume my loan?
well once you sell the home there is no loan to assume
We are looking at a house for sale with an assumption. However they are asking more for the house than what is left on the loan. They have $309k left but asking $450k. How does this work?
I’ve never heard of someone trying to assume a loan for more than what the balance of the loan is for. It would seem to me you would need to assume their loan And also pay them the difference
@@lowvarates ok thank you!! We will see if we can secure another loan to pick up the balance
Can you secure another loan to cover the difference?
@@littin3671 we are trying but it's difficult
@@littin3671 That is very well possible yes
Where can I find VA properties that can be assumed?
That’s a bit harder. VA loans are achievable. It’s not really the property that is assumable it is the note, or the loan. That said, it would almost always include taking residency in the property. I would go to google and look around for a list of assumable notes
They are findable.. I have spent an hour and a half of every day for the last 6 months to finally found one.
What M F Home dealer takes VA?
Pretty much anyone would if you had financing lined up
Can I assume my parents Loan after their death?
Yes you can, the lender servicing the loan would need to approve that but if you can prove you are capable of handling the payments, then yes!