VA Loan Assumptions! What You Need To Know On The VA Loan скачать в хорошем качестве

VA Loan Assumptions! What You Need To Know On The VA Loan

They take a long time. The timing issues with VA loan assumptions. Assuming a VA loan is NOT a quick process whatsoever! At all! In fact, a mainstream lender quoted recently that the 'average VA assumption could take approximately 60 days'! It's one of the main reasons why Sellers aren't super happy about taking a home off the market and waiting for 60 day or sometimes more for something that may not even happen! You will see below that many VA assumptions are dying at the 11th hour! Not a good position for potential buyers and sellers to be in when it comes to VA loan assumptions. Entitlement used up and potential liability issue with the VA loan assumption.. Here is the major issue with this. VA Buyers make up approximately 14% of the buyer population. This means that a non-VA buyer is planning on taking over the existing VA loan; it can take over the remaining entitlement that the Veteran has left. It will continue to use up the entitlement of the current VA loan holder. The other issue to consider is that is the new buyer defaults on the VA loan they take over, this is actually counted against the Seller (Current VA loan holder) and they would lose that portion of their benefit. Eeeek Money down required issue for the sales price vs the VA loan being assumed. The buyer must make up the difference between the loan amount being assumed and the new sales price. Let’s look at an example, if you were assuming a $300,000 VA loan and agreed to buy the home from the seller at say $500,000, you would have to come in with the difference in cash plus the assumption fees. So at a minimum $200K in this example. Also the buyer must assume the payment that is currently being made on the home loan and not just the rate. Finally, the lender itself. Perhaps the biggest issue when it comes to assuming a VA home loan is the actual lender and or servicer. Not all lenders or servicers are wiling do assumptions at all. So, if the loan is being serviced by one of those lenders who don’t want to do it, they will not allow the assumption to take place. The biggest issue that has popped up with questions is the many Sellers and agents think that just because there is a VA home loan on the property, that it is automatically assumable and a piece of cake. Unfortunately, it just doesn’t work that way. So, in summary, VA loan assumptions are not all they appear to be. There is a lot of things that have to line up in order for the assumption to work and after several months, it could be denied at the last minute. So let’s let's take a look at how VA loan assumption could work. Here is what goes into getting an assumption complete. Let’s take a look at a checklist. 1.First, check to see if the Lender does indeed even offer a VA Assumptions. This is your first step. And remember, it is not uncommon that the current loan servicer even allows VA loan assumptions. If they do, move onto step #2 2. The borrower must qualify with the Lender who has the current VA loan. This means credit will be pulled, income will be verified, and a determination of whether the new borrower can afford the payments on the loan with debt to income and residual income requirements. If this works, move onto step #3 3. The Seller has to agree to the assumption. The current homeowner who has the VA loan must agree to the assumption and must provide the current lender with any documentation required. Hope this helps on your journey of VA assumable loans. Make sure to like and follow for more tips! We love doing home loans! Here's how to get a hold of us 1) Book a call with me : https://calendly.com/aaron-dehart-1 2) Apply For a Mortgage @ https://bit.ly/3xj8YMq If you apply, please text us over your name and email address so we can be on the lookout for it. TEXT to 775-365-9306 3) Give me a call at 775-365-9306 Getting a home loan is not as complicated as you may think!    • VA Loan Assumptions! What You Need To Know...   #aarondehart #valoans #assumablemortgages