Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
If you are a member or veteran of the military and have a VA (Department of Veterans Affairs) loan, there are several things you should know about a VA loan assumption before you agree to sell your house.
The VA, not the lender, must approve the assumption in the case of divorce. The VA will let a mortgage be assumed with no restrictions if you are getting divorced from your co-borrower. The VA suggests that both you and the co-borrower sign an agreement whereby the co-borrower is held harmless in case the home is foreclosed on in the future.
2. VA Loans Closed before March 1, 1988
VA loans can be assumed if they were closed before March 1, 1988, but the assumption will be considered unrestricted since the new buyer will not have to get prior bank or VA approval. You are still responsible for any loan losses to the VA if there is a default, so you may decide not to allow the assumption to take place.
3. VA Loans Closed after March 1, 1988
Assumptions for VA loans made after March 1, 1988, are permitted only if the lender approves them. You are not responsible for any losses to the VA, which makes it safe for you to agree to this assumption.
- How to Get Approved for an FHA Loan despite Bad Credit
- Should You Refinance? Make Sure the Timing is Right
- Second Mortgages: Advantages and Disadvantages
- Alternatives to Getting a 2nd Mortgage
- 3 Factors that Can Negatively Affect Your Mortgage Application
- Low Down Payment Loan Qualification
- 3 Common Short Sale Mistakes
- Home Equity Loans for People with Bad Credit
- FHA Eligibility with Bankruptcy and Foreclosure