I've seen some people get questions answered about VA loans, and I've googled some about assuming them, was hoping to get some answers for myself.
We PCS'd to Fort Gordon a few year ago and used the VA Loan to buy a new build at 3.25% in Harlem. I understand that it wasn't the best idea given that I would be PCS'ing again, however at the time there was nothing available on/off-post without waiting for 6+ months.
I have orders to PCS this summer, and am not interested in trying to be an absentee landlord or deal with a property management company. I'm just trying to see if it is worth it to look for someone who would assume the loan, or just put it on the market.
If I understand what I've read, if we are trying to sell for $325k, and owe $290k, anyone assuming the loan would take over the $290k and have to get the remaining $35k to us? Is 3.25% even worth that or are we better off going the normal route? Do people still use agents to find 'assumers' or is there a better place to go?
Posted by Terminal_Maint1
2 Comments
Yes, definitely use a real estate agent. An assumable VA is EXTREMELY valuable as a selling point and could generate a higher sell price.
You have two options from there:
Leave your entitlement to the buyer. Not recommended because it’s very valuable but could be in the right situation and what your future looks like.
Exchange the entitlement for theirs. Recommended. You get your entitlement back to use on a future purchase.
We just went through this process so ask a way!
3.25% is 100% worth that, especially if it’s as small of a gap as you stated. Your understanding is correct, they would have to have the difference in the loan amount and purchase price. They would have to use the lender your mortgage is currently with and they do take some time to close, but most people are ok with that. Depending on when you PCS is what affects the route you go. Have some time, list it yourself and offer a 2-2.5% or flat rate commission to the buyers agent if they bring you a buyer. Dont advertise this in your description if you list FSBO though. Question you have to answer is does your buyer have to be able to qualify for a VA loan or do you intend to give up your entitlement.