What Happens to the VA loan When a Veteran Passes Away?
When a veteran passes away, it can have a major impact on the Veteran’s surviving family members, including those who are the beneficiaries of a VA Home Loan. A VA Home Loan is a loan obtained through the Department of Veterans Affairs (VA) to help veterans purchase, build, or improve a home.
Verify my mortgage eligibility (Apr 26th, 2024)When a veteran dies, the VA Home Loan becomes part of the veteran's estate. A VA loan can be assumed, which allows someone to take over the terms of an existing mortgage, even if they aren’t a military service member, veteran or eligible surviving spouse.
This is a benefit when rates increase and the current VA loan has a lower than current market rate. If the veteran had a next of kin, they may be able to assume the loan and continue making payments.
However, if there is no surviving spouse or family member willing to assume the mortgage, the loan may need to be refinanced or paid off. If the loan is refinanced, the new borrower must qualify for the loan and meet all requirements. If the VA loan is assumed, the new borrower may also be required to pay a funding fee, which is a one-time fee that’s paid to the VA.
Verify my mortgage eligibility (Apr 26th, 2024)It is important for veterans to understand the impact that their death may have on their VA Home Loan and to make sure their beneficiaries are aware of their obligations. It is also important to consult with an attorney to ensure that any legal documents are properly handled.
By taking the proper steps, veterans and their families can ensure that their VA Home Loan is handled properly and that no one is stuck with an unmanageable loan after the veteran has passed away.
Resources: https://www.benefits.va.gov/…/pam26_7/Chg_17_ch_5.pdf
Give us a call us today at 949-243-7900 to determine your VA Loan eligibility and 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 (Apr 26th, 2024)