Assuming a VA Loan?

Are you a military service member, veteran, or military family member looking for a mortgage option that offers low closing costs, no down payments, and low interest rates? Look no further than a VA assumable loan! Not only do VA loans offer these benefits, but they also allow for the option of being assumable, meaning a new homebuyer can take over the home seller's mortgage while keeping the same terms as the original loan.

With interest rates on the rise, now is a great time to consider this option. But what exactly is a VA assumable loan and who is eligible to assume one? A VA assumable loan is a loan that was guaranteed by the VA and closed after March 1, 1988. It allows a homebuyer to take over a homeowner's mortgage, including the existing loan's balance, the interest rate, and the monthly mortgage payments, as long as the buyer meets the original lender's borrowing requirements.

Who can assume a VA loan? Anyone the lender deems qualified, not just active or retired service members and their families. However, buyers must typically have a credit score of at least 580, a debt-to-income ratio of 45% or lower, and agree to take over the terms of the original loan. Additionally, they may be required to pay a VA funding fee, processing fee, and credit report fee.

The process of assuming a VA loan may seem daunting, but with the help of a knowledgeable loan officer like Isaiah Slutter, you can navigate the process with ease.

Isaiah can be reached at Isaiah@edwardsfinancial.biz or 215-678-7864 . Don't miss out on the benefits and flexibility that a VA assumable loan can offer. Contact Isaiah today to learn more!