One of the most frequently asked questions about having a VA guaranteed mortgage has to do with the ability to sell the property. Is the borrower on a VA mortgage restricted in any way from selling the home? For an outright sale of the property, the answer is no.

FREE CREDIT SCORE

Do you know what's on
your credit report?

- SEE IT NOW -

FHA Loan Articles

News, updates, and explanations to keep you informed.

Selling a Home Purchased with a VA Loan

While it's true that VA loans differ from conventional loans in some ways, in others they are exactly the same. One of the most frequently asked questions about having a VA guaranteed mortgage has to do with the ability to sell the property. Is the borrower on a VA mortgage restricted in any way from selling the home?

For an outright sale of the property, the answer is no. And there are no restrictions on who you can sell to, either-vets can sell to non-veterans, active duty personnel can sell the home to civilians, etc.

But if you want to sell the home by having the buyer assume the VA loan, the rules change.

The basics: Any VA loan closed after March 1, 1988 and offered on the market later on as a loan assumption purchase requires the buyer-the person assuming the VA mortgage--to have their qualifications reviewed and approved by either the lender, OR the Department of Veterans Affairs.

In addition to the "approval rule", when the loan is successfully assumed on a VA loan closed after March 1, 1988, the veteran must contact the VA and request a release from liability on the assumed loan. Otherwise, the original borrower risks becoming liable to the government should the new owner of the home default on the assumed loan.

There is no approval process required for any VA loan originated prior to March 1 1988, and the seller is not required to contact the VA for a release of liability on the loan when the loan is older than 1 March 1988. Even so, Department of Veterans Affairs officials say when it comes to loan assumption procedures, it's a very good idea to contact the VA for a release of liability regardless of when the loan was originated.

FHA NEWS and RELATED ARTICLES

VA Loans, Credit Issues and Co-Borrowers

VA loans don't always involve a single borrower. Sometimes there are situations where co-borrowers, co-signers, and joint loan applicants want to apply for a VA guaranteed mortgage loan.

Qualifying for a VA Loan

There are a great many commonly asked questions about VA home loans, but one of the most-asked topics revolves around the issue of VA loan eligibility. One important issue connected to eligibility is the nature of an applicant's military discharge.

VA Loans and Seller Concessions

The VA home loan program is not the only type of government insured mortgage loan program. There are other programs available which, unlike VA loans are open to the general public.

The VA Interest Rate Reduction Refinance Loan program (abbreviated as VA IRRRL) does require a VA loan funding fee. But, borrowers eligible for a this exemption should not assume that it is automatic.

About the VA Loan Funding Fee

Next 5

Qualify for an FHA Loan

Sites and Offers of Interest

Free FHA Limits Calculator

Display current FHA loan limits for states and counties on your real estate, mortgage, or community website.

Get: FHA Limits Widget

FEATURED SITES:

Helping you make the best financial choices, build wealth, and save money during and after your military service.

-- Military Insurance
-- Military Pay
-- GI Bill Education
-- Military Finance

Offering VA loan products that meet the home financing needs of active duty military and veterans across the country.

-- VA Loan Limits
-- VA Loan Refinance
-- VA Loan Guidelines

Remember, the FHA does not make home loans. They insure the FHA loans that we can assist you in getting. FHA.com is a private corporation, is not a government agency, and does not make loans.

FHA LOAN TYPES:

-- FHA Refinance
-- FHA Streamline
-- FHA Cash-Out
-- FHA Home Loan
-- FHA Secure
-- FHA Reverse
-- FHA Loan (fixed rate)

SPECIAL FHA TOPICS:

-- FHA Down Payments
-- FHA Credit
-- FHA Appraisals
-- FHA Mortgage Tips
-- FHA Loan Prequalify
-- Other Loan Types
-- FHA Loan Questions
-- Obama Mortgage
-- HOPE Act

FHA Foreclosed Homes

SEARCH FOR FREE!

Search by State

- or -

Enter Zip Code

- A Blog About FHA Loans -

This blog is brought to you by the knowledgeable group of counselors at FHA.com. Our team specializes in advising our customers about the value of FHA mortgage loans.

> See also: VA Loans Blog

- A Military Hub Site -

Military guidelines, regulations, and benefits are introduced each year for everything from Military Pay Charts to your VA Loan benefits. We can help you stay informed.

> See also: Military Pay Archive