VA Loan Reader Questions: Selling The Home
A reader asks, “My parents currently purchased a home in California using their VA loan. Is it possible for their non-VA daughter to be placed on title to that property in hopes of purchasing it from them next year?”
There are many VA loan rules put in place to protect the VA borrower. Some of the rules have to do with the condition of the home, others have to do with the location of the home with regard to flood zones, high voltage transmission lines or easements, or gas pipelines. But some of the most important VA loan rules in the borrower protection category have to do with the borrower’s ability to sell the property purchased with a VA mortgage.
Did you know VA loan rules do not permit a sales contract or homeowner’s association agreement that restricts the borrower’s ability to sell the home? A qualified VA borrower may sell his or her property at any time, to anyone financially qualified to purchase the home.
The reader’s question may arise from a mistaken assumption that the only people who can buy the home acquired with a VA loan are fellow VA borrowers. This is not true.
The home can be sold to a military member, civilian, etc. The home can be purchased from the veteran borrower with a conventional mortgage or any other type of home loan.
The only requirement in such cases is that the borrower must either assume the loan, purchase the home outright or apply for a mortgage loan. In other words, anyone who can qualify for a home loan or assumption, or pay in cash, may purchase the veteran borrower’s property.
When it comes to assuming a VA loan, you don’t have to be a veteran to do so, but most VA loan assumptions require the participation of the lender.
Do you have questions about VA home loan rules? Ask us in the comments section.