Carey Lewis, Other/Just Looking in Bridgeport, CT

I have a wells fargo VA loan. Does anyone know the requirments for a buyer to assume a mortgage?

Asked by Carey Lewis, Bridgeport, CT Sat Dec 29, 2012

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delaney.josue, Home Buyer, Roslyn, NY
Fri May 1, 2015
Anyone can assume a VA mortgage – as long as their income and credit qualify – but children of veterans can’t get VA loans themselves (unless, of course, they join the military as well). You have to be a current service member, veteran or surviving spouse of a veteran to qualify for a VA loan.

Here are a few of the main requirements for assuming a VA loan:

>If the person assuming the loan isn’t a veteran, then the veteran will lose their remaining entitlement benefits because the VA benefit stays with the mortgage, not the individual.
>There’s also a funding fee that must be paid: 0.5% of the existing principal balance. Either the original owner or the new mortgage holder can pay this fee.
>Once the assumer gets approved for the loan and the county receives the new deed, the current owner is released from all liability for the mortgage.

Read more at https://www.wellsfargo.com/mortgage/loan-programs/fha-va-loans/ & http://vastreamlinemortgage.net/va-mortgage-loan-advantages-…
3 votes
Soniajanki, Home Buyer, San Jose, CA
Thu May 14, 2015
VA Home Loan program is more important than ever to service members. In recent years, lenders nationwide have tightened their lending requirements in the wake of the housing market collapse, making the VA Loan a lifeline for military homebuyers, many of whom find difficulty when faced with tough credit standards and down payment requirements.

Military homebuyers have access to one of the most unique and powerful loan programs ever created. See how the VA Loan compares to a traditional home mortgage:

> VA Loans: Conventional Loans
* 0% Down
(for qualified borrowers)
VA Loans are among the last 0% down home loans available on the market today.
Up to 20% Down

* No PMI
Since VA Loans are government backed, banks do not require you to buy Private Mortgage Insurance.

* Competitive Interest Rates
The VA guaranty gives lenders a greater degree of safety and flexibility, which typically means a more competitive rate than non-VA loans.

* Easier to Qualify
Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans, making them easier to obtain.

> Conventional Loans :
* Conventional loans generally require down payments that can reach up to 20% to secure a home loan, pushing them out of reach for many homebuyers.

* PMI Required
Private Mortgage Insurance is a requirement for borrowers who finance more than 80% of their home's value, tacking on additional monthly expenses.

* Increased Risk for Lenders
Without government backing, banks are taking on more risk which, in turn, can result in a less-competitive interest rate on your home loan.

* Standard Qualification Procedures
Conventional options hold stricter qualification procedures that can put homeownership out of reach for some homebuyers.

Reference Link: http://valoanguidelines.org/
2 votes
Ted Kostzews…, Agent, Stratford, CT
Sat Dec 29, 2012
The laws have changed and the ansers are not simple ones. Heres an article to get you started.
VA Loan Articles

News, updates, and explanations to keep you informed.

VA Loan Assumption--What Veterans Need to Know

by Bruce Reichstein



If you purchased a home with a VA guaranteed mortgage loan, you may find yourself in a position someday where you need to sell. Active duty military members facing permanent change of station moves, or those who simply want to upgrade to a larger home in a different area must deal with the sale of a home before their VA loan is paid in full. In some cases, a VA loan may be assumable, that is the buyer can take over the VA loan regardless of whether they are civilian or military.

At one time, all homes purchased with a VA loan were considered assumable, but since then the rules have changed. Do you know the circumstances where you are allowed to sell the home and have the seller assume the VA mortgage?

In cases where a veteran home owner is getting a divorce, the VA allows what's known as an unrestricted transfer. This is allowed in cases where the military spouse and non-military partner are co-borrowers. The VA mortgage can be assumed in cases like these, but the VA strongly urges both parties to sign a release of liability so the departing co-borrower is not held liable for any credit issues that may come as a result of default or foreclosure should the occur. In cases of unrestricted transfer, the VA must approve the transaction, not the bank.

VA home loans may also be assumed if the loan closed before March 1, 1988. In these cases, the loan assumption is unrestricted--the buyer assumes the VA loan without requiring the approval of the bank or the VA. One caveat to this, however--the veteran remains liable for any losses the VA may incur as a result of the loan assumption. It's very important to get some VA advice on how to protect yourself before agreeing to this type of sale, as the purchaser may be allowed to sell the home once more and let a third party assume the loan, with the veteran still liable for losses to the VA.

In cases where VA loans were closed after March 1, 1988, VA loan assumption is not allowed unless you obtain prior approval from the lender. This extra step may be time consuming, but there is a benefit at the end of the process--the veteran is released from liability to the VA and doesn't have to worry about the sale of the home coming back to haunt them at a later date if the purchaser defaults on the loan.

The VA warns VA mortgage holders not to proceed with a VA loan assumption in these cases without prior bank approval. Those who do could get a notice from the VA that the VA loan is "due on sale", even if all payments are on time and current.
1 vote
Andrew Liebe…, Agent, Sunrise, FL
Wed Jun 10, 2015
100% Financing!!!! BELOW IS THE BENEFITS AND QUALIFICATIONS FOR VA LOANS!!!

VA Mortgage Loans are available today for both honorably discharged Vets and active duty military personnel. Here are some of the great features of this fantastic program:


WHAT ARE THE BENEFITS?

- Up to 100% financing, with no down required.

- No monthly mortgage insurance added to your payment.

- More lenient credit qualifying standards than other types of mortgage loans.

- Low rates compared to other loan programs.

WHAT WILL YOU NEED TO BE APPROVED?

-Order your Certificate of Eligibility. A Florida VA loan lender can order your COE quickly for you, or you can go directly to the VA to obtain a copy. If discharged, you will need your DD214. The next step is to get pre-approved with an experienced VA lender.

-2 years tax returns

-Last 2 paycheck stubs

-Last two bank account statements

-600+ credit score (typically 640 is what most lenders look for)

-Same line of work for the past two years

-Money for closing costs


Please contact me and I will put you in touch with the best VA lender!!!
Andrew 954-394-7185 (prefer text first)
AndrewLtherealtor@gmail.com
0 votes
Not sure how you can say "the best VA lenders" when they all say the exact same thing. If for some reason you don't meet every single little piece of criteria, you are told that they can't help you. Come back when you have everything 100% perfect. These are supposed to be Veterans Assistance loans for VETERANS!!!! But, unless you have perfect credit, perfect income, etc. they won't help!!! Even though we sign up to serve and protect this country and put our lives on the line, and they don't care or have any criteria for you to die for this country!!!!!!! Where does the thanks come back to us and help us get approval and help that the ordinary citizen can't get?
I have a friend who was not a veteran and saw the rules bend for her to be able to buy a house! I can't get anyone to bend a little and help me.. Our credit history is just about the exact, but she also has an additional car repo and a house foreclosure in her past!!!! I also have two boys who live with me!!!!
Flag Mon Nov 23, 2015
Akworldclass, Home Buyer, Fort Lauderdale, FL
Fri Oct 11, 2013
I had a Wells Fargo VA Loan. They suck. But the buyer has to be qualify for the loan terms you have. They do not have to be a veteran but this type of buyer is now taking your eligibility away. You can also talk to a VA rep at a VA Regional Center to post this home so another Veteran can assume the loan. This is a no brainer as the veteran usually will qualify and you restore your eligibility to buy again later.
0 votes
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