As a non-veteran, it is possible to take advantage of the benefits of a VA loan. VA loans are a type of mortgage loan available to eligible veterans, members of the military, and their spouses, and provide potential buyers with access to attractive interest rates and lower closing costs.Verify my mortgage eligibility (Feb 4th, 2023)
The VA loan program is a great option for any borrower, regardless of their military background or service. Non-veterans, who are not eligible for the VA loan program, can still access the benefits of a VA loan by assuming a VA loan.
Assumption of a VA loan is when a non-veteran or veteran takes over the terms of an existing VA loan from another borrower. This means that the new borrower will take over all the terms of the loan, including the interest rate, loan amount, and repayment period. The new borrower assumes the loan and becomes responsible for making all payments. To assume a VA loan, the borrower must meet certain criteria, such as having a good credit history and a sufficient income to make payments.
When it comes to the benefits of assuming a VA loan, the non-veteran will typically benefit from the same advantages as a veteran. This includes the lower interest rates and closing costs, as well as the ability to access up to 100% of the home's value.Verify my mortgage eligibility (Feb 4th, 2023)
In addition to the financial benefits, there are also certain non-financial benefits of assuming a VA loan. For example, this type of loan is assumable, meaning that the loan can be easily transferred to another person if needed. This can be especially beneficial if the non-veteran is looking to move or sell their home in the future.
One downside when a non-veteran assumes a veteran's loan is the entitlement. The veteran’s entitlement would not be released until the loan is paid off or another veteran replaces the entitlement with their own. When a non-veteran assumes a mortgage, they do not have VA entitlement to use thus making it difficult for the veteran to purchase another property using their VA benefits.
Overall, assuming a VA loan can be a great option for a non-veteran. Not only can they access the financial benefits of a VA loan, but they can also benefit from the other advantages of this type of loan. If you are a non-veteran and are looking for a way to access a great deal on a mortgage, assuming a VA loan may be the right choice for you.
Give us a call us today at 949-243-7900 to determine your VA Loan eligibilityand start you on the path to owning your own home. We are a veteran focused company, participate in veteran-run non-profit organizations aiming to help some of our finest secure their homes via VA loans, and strive to educate all of our veteran clients as well as real estate agents on the benefits of a VA Home Loan. We are proud to have helped thousands of veterans navigate the home buying process.Show me today's rates (Feb 4th, 2023)