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My house was purchased with a VA loan. Currently, I have tenants in my home who are active duty. Can I transfer the loan to them?

by kytat80410 from , . Feb 3rd 2016 Reply


Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 394 contributions

If they are eligible for a VA loan they can assume your VA loan. They would use their VA eligibility which would reinstate yours so you could purchase another home with a VA zero down mortgage. In addition, they would need to qualify with your current lender before the loan could be assumed. In other words, their credit, income and debts would need to be evaluated before they could take over your loan.

Feb 3rd 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

Yes, it's possible.. But why would they? If you have any equity at all, then the new buyers will only be taking over your existing loan.. so how do you get your equity? They cannot change your loan terms if they are assuming your existing loan.. Are you doing a "Seller Carry-back"? Not advisable... are they bringing cash to close to pay for your equity upfront? Why would they .. if they are also VA eligible, why wouldn't they just apply for a new VA loan and go 100% financing? So the quick answer is YES.. if they are VA eligible, they can assume your existing VA loan, but they must qualify.. it would reinstate your entitlement so you can purchase another property.. but it's probably not the best way to go if you have any equity at all.. The only way I can see this being beneficial to you is if you're underwater on your home, and someone is willing to assume the existing loan.. But outside of that.. I don't see a benefit to you.. For the buyer, there is no benefit.. aside from having VA benefits, they must also fully qualify.. Tax returns, W2's, pay stubs, bank statements and of course, acceptable credit scores.. for the borrower, there is no difference from a purchase to an assumption when it comes to loan qualifying.. 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 NMLS# 226347

Feb 3rd 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

They may be able to assume it, but normally that is not in your best interest. They have their own VA eligibility and can simply purchase the home from you, there may be some cost savings if they assume it.

Feb 3rd 2016
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