Are VA Loan-Financed Homes Harder to Sell?

VA-loan-financed-sellActive military members and military families are often facing relocations. Due to this, its often asked if having a VA loan limits the ability or right to sell their home.

The assumption is that having a VA home loan imposes special conditions which lock you into your property and disable the right to sell the home. Fortunately, this assumption is untrue. Va Loans and regular mortgages are similar in the fact that you can sell at any time.

Whether you’re selling to upgrade to a bigger home or due to PCS, homeowners with a VA loan-financed home may want to one day sell. When it comes to selling your home financed by a VA lender, there are several options.

One option is to allow an eligible home buyer to assume the VA Loan and the associated payments. Another option is to have the prospective buyer take out a new loan to pay the balance of the existing loan. Either option allows the seller to fully restore their VA entitlement so that they may use their VA loan benefits when purchasing their next home.

By having the home buyer pay the loan balance, the seller is given peace of mind knowing that the existing loan is paid in full instead of worrying about the purchaser being irresponsible with payments.

In the case that the purchaser is assuming the VA loan, benefits to the seller include low closing costs, no appraisal or repair requirements and reduced overall processing. Of course, this option requires the purchaser to be eligible for a VA loan and qualify with the lender for the assumption process.

 

Have questions about selling your VA loan financed home or about getting pre approved for a VA loan? Contact Midwest VA Loans at 816-875-6392.

6 Comments
  1. Nice post, didn’t know most of that.

  2. There’s a lot of good information here. Thanks for the post.

  3. These situations always require someone who knows what they are doing. Interesting information.

  4. Thanks for the help on this topic!

  5. Its great to know there are still good options when a home is purchased with a VA loan. Thanks for sharing!

  6. Interesting that you could possibly locked into the VA loan, good to know there are options.

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