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VA Loan release

This topic contains 13 replies, has 0 voices, and was last updated by Avatar of bigal bigal 9 years, 2 months ago.

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  • #5001
    Avatar of bigal
    bigal
    Member

    Rookie needs help,

    I have a seller opened to the idea of the basic trust transfer. She has a VA loan on the property and wants to know if she will be able to get another VA loan in a couple of years with the first one still sitting our transaction.

    Anyone with a quick answer would be highly appreciated,
    Alan

    #26521
    Avatar of jerry carey
    jerry carey
    Member

    Hello Bigal:

    As far as I know … all V.A. loans are fully assumable by anyone, without having to qualify in any way! Someone is going to have to assume that loan OR the existing borrower will have to stay on the loan! If they stay on the loan I don’t think they can apply and qualify for a second loan without retiring the first one. I’m am not positive about that, but that’s my honest opinion.

    Jerry Carey

    #26522
    Avatar of bigal
    bigal
    Member

    Thanks Jerry,

    I appreciate the info. That gives me something to go on and I will research this some more.

    Alan

    #26523
    Avatar of areyes
    areyes
    Member

    the RTI (rent to income) letter may also help you qualify for another loan. the lender would see that your property has been transferred into your own revocable living trust for estate planning and asset protection. not only that, you’d have a 2 month contingency fund held for your trust and preferrably your PITI is covered based on a commercial type triple net lease agreement.

    basically the lender will see that you’ve structured your residential property to act like a commercial property where the monthly payments are covering your debt servicing and preferrably receiving positive cashflow.

    if you were to do a straight lease, lenders will credit you 75% rent to income credit because the landlord is still responsible for the risks of vacancy, repairs, maintenance, management, negative cashflow, etc.

    the EHT will either eliminate or mitigate those risks significantly if done correctly.

    #26524
    Avatar of jerry carey
    jerry carey
    Member

    Alan:

    Alvin is absolutely correct … if you leave the existing financing where it is now in the name of the prospective Settlor Co-Beneficiary. However, if what I said is correct about it being assumable by anyone … why wouldn’t you just assume the loan and get the seller out of the transaction completely :!: Your going to be taking over the monthly payments anyway.

    Jerry Carey

    #26525
    Avatar of areyes
    areyes
    Member

    i agree with jerry.
    ive read that FHA and VA loans were assumable by formally qualifying with the FHA/VA lender. of course you have to do the full documentation and verify everything.

    @Jerry Carey wrote:

    Alan:

    Alvin is absolutely correct … if you leave the existing financing where it is now in the name of the prospective Settlor Co-Beneficiary. However, if what I said is correct about it being assumable by anyone … why wouldn’t you just assume the loan and get the seller out of the transaction completely :!: Your going to be taking over the monthly payments anyway.

    Jerry Carey

    #26526
    Avatar of jerry carey
    jerry carey
    Member

    Alvin:

    No … what I was saying is that for VA loans (not FHA loans) there was NO qualifying necessary to assume these types of loans :!: I know years ago that this was true, but thing might have changed in the last 20-30 years! (lol)

    Jerry Carey

    #26527
    Avatar of areyes
    areyes
    Member

    No qualifying for VA loans. interesting. TRUST, BUT VERIFY. hehe

    @Jerry Carey wrote:

    Alvin:

    No … what I was saying is that for VA loans (not FHA loans) there was NO qualifying necessary to assume these types of loans :!: I know years ago that this was true, but thing might have changed in the last 20-30 years! (lol)

    Jerry Carey

    #26528
    Avatar of mtnwizard49
    mtnwizard49
    Member

    I don’t think there has ever been a time that you had to qualify to assume a VA loan. You HAVE to retire the first before you can take out a second one, however.

    #26529
    Avatar of jonrobinson
    jonrobinson
    Member

    This I know, No you cannot get another VA loan until the last one is settled. I have assumed one before and unless it was established before 1983 or early 80′s anyway it’s not “No Qualifying Assumable” but neither was the one I assumed and I didn”t qualify It cost me $500 and a credit check yes my credit was good but recent job with not enough income to show, I told the broker who had the listing and had had it fall out of escrow several times well its no wonder with no front door, back door, no flooring missing part of the roof, I’ll just assume the loan. She said” It’s not assumable! Just show the pictures of this property and it will magically become assumable.and it did. I gave the seller a note for the difference. and I am not a Veteran either. However I listened to Bill at his seminar and I believe he mention that the VA loan is already a form of a land trust and that you would have to find new financing to use the NARS EHT. I could be wrong on that.

    #26530
    Avatar of bigal
    bigal
    Member

    Thank you so much gentlemen. Your response, info and suggestions are outstanding and highly appreciated. I think I’m a believer now in this BB. I can learn so much in a short time.

    Till I need help again (probably pretty soon),
    Alan

    #26531

    Jon you are correct. You can only have one VA loan in your name.

    All loans have some qualifying, including VA.

    #26532
    Avatar of bill_gatten
    bill_gatten
    Participant

    Alan,

    You must change your handle…all this time I thught we were hearing from a bi-gal. But now I see…it’s big Al. Whoa! Scared me.

    #26533
    Avatar of mtnwizard49
    mtnwizard49
    Member

    I thought the same thing. I thought Big Al had a sex change operation and was now bi-gal.

    #26534
    Avatar of scott
    scott
    Member

    @mtnwizard49 wrote:

    I thought the same thing. I thought Big Al had a sex change operation and was now bi-gal.

    :lol: Me too! Try caping the A.

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