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Mortgage Q & A: Can I Assume a VA Home Loan?

Q: My sister has a VA home loan and needs to sell her place due to a job transfer. I am settled in this community and would like to buy her home and take over her mortgage payments. Will the VA allow this?

A: For VA home loans closed after March 1, 1988, the VA and the lender will have to approve the assumption. Your sister will need to request an assumption package from her mortgage servicer (the company she sends her mortgage payments to). An important aspect of this transaction for your sister is requesting a release of liability from this loan from the VA. For VA loans closed after March 1, 1988 the VA and mortgage lender are required to approve assumptions of VA loans; obtaining a release of liability is part of the approval process.

If you have VA eligibility on your own, you may want to substitute your VA eligibility for your sister's eligibility when you assume her VA loan. This would allow her to re-use her VA eligibility for her next home purchase. Otherwise, your sister will not be able to use her VA loan eligibility again until the loan you are assuming is paid in full or assumed by someone else who substitutes their own eligibility.

LendingTree's network of VA-approved mortgage lenders can provide mortgage quotes, information about applying for a Certificate of Eligibility (COE) and qualifying for a VA home loan.

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