If someone is assuming your VA loan, watch this!
Hey Veterans, this ones for you! Whether you're buying or selling a home, this is critical. If your selling a house and allowing someone to assume your VA loan, you MUST notify your lender. Why? Because if we think your current VA loan is still active, we'll calculate your new mortgage using all of your entitlement—and that can blow up your next purchase on the back end. Even worse, many sellers wrongly assume that if another veteran is assuming their loan, the VA entitlement will automatically swap. It doesn't. Unless it's explicitly written into the contract, in clear language, your eligibility can stay tied up indefinitely...or worse, end up in foreclosure in someone else's name.
Pro Tip: Always include an addendum stating that the buyer must substitute their own VA entitlement. And remember, even non-veteran buyers can assume VA loans...and if they do, they keep your entitlement until the loan is paid of.
You worked hard for your VA benefits. Don't give them away by accident. If you're not sure how to handle this or if your buying another home and using your VA loan again, tell your lender ASAP so we can set it up the right way.
Stay smart!
Jen
786-933-2077
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