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Can you wrap a VA loan?

by ruthacall322 from Pocatello, Idaho. Jan 22nd 2015 Reply


Linda Wintersteen (Linda123)
#64 ranked lender in Arizona - 1,250 contributions

NO , what are you trying to accomplish ?? linda

Jan 23rd 2015
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

Do not understand the question. Need more information.

Jan 23rd 2015
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 562 contributions

Not sure what you mean but if you mean can you wrap a first and a second together with a VA loan. The answer is yes - if the value of your is there you can then do a VA refinance. A VA loan allows 100% of the home value in a refinance. If this is not your question, then feel free to call me and let's discuss your situation. I am a loan officer living in Salt Lake City but am licensed in Idaho. I look forward to hearing from you. Linda Miller, 801.550.1222. linda@lindamillergroup.com

Jan 23rd 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Not legally.. You could have your loan called due and payable.. Part of the documentation you signed when you initiated your VA loan stated that if you sell the home, you have to pay the balance in full (due on sale clause).. VA does allow the new owner to "Assume" your loan, but they must qualify with your lender to do this.. Also, if they are not veterans, then your entitlement will be tied up until the property is paid off.. If the person assuming your loan is a veteran, then you release your entitlement and allow the buyer to use his entitlement for the existing loan.. Personally, I would not expose yourself by allowing someone to illegally assume your loan.. If the person trying to buy it cannot qualify, it means that the bank looks at them at a BAD risk.. you should look at it the same way.. typically, these types of deals end up going bad, and can cost you in the long run.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 23rd 2015
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#29 ranked lender in New York - 2,236 contributions

You can wrap your closing costs in if that's what your asking!

Jan 23rd 2015
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Mark Rodeghiero (markr@3rates.com)
#33 ranked lender in Idaho - 14 contributions

Hi Linda, I believe with a little more context that a sufficient answer can be attained. Please give a scenario for the "wrap" indicated.Thanks -

Jan 23rd 2015
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Dave Metsker (DaveMetsker)
#38 ranked lender in Oregon - 2,317 contributions

Sure, just the same as a conventional or FHA loan. All have the small possibility of being called due on sale, but this is rare. Take it subject to, and wrap away!

Jan 23rd 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

BTW... the most general use of the term "Wrapped Loan" refers to a loan on a purchased property that is wrapped around an existing loan that is not being paid off.. Example: Seller offers for sale a property at $150K and has a first mortgage balance of $100K. Buyer comes to the table with $15K down payment and finances the remaining $135K via Seller Financing.. the First loan of $100K is WRAPPED into the total seller financing loan of $135K.. This type of loan was very common prior to the mortgage crisis.. in previous times, even though it was illegal, in most instances, rarely would a lender call a note due and payable.. but today, its very likely to be called due.. so I would be cautions and would not advise you sell your property this way.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 23rd 2015
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