Are you a veteran looking to transfer your VA home loan to another property or to another borrower? Then this article is for you! In this comprehensive guide, we’ll cover everything you need to know about VA home loan transfer, including the process, requirements, and FAQs. So, let’s get started!
Introduction
VA home loans are a great benefit for veterans and their families to become homeowners. However, circumstances may arise where veterans need to transfer their VA home loan. VA home loan transfer occurs when a borrower transfers his/her remaining VA home loan entitlement to another property, another borrower, or to refinance to a non-VA loan. In this guide, we will discuss everything you need to know about VA home loan transfer.
What is VA Home Loan Transfer?
VA home loan transfer is the process of transferring the remaining entitlement of a VA home loan to another property, borrower, or to refinance to a non-VA loan. The entitlement is the amount the VA guarantees for each qualified veteran borrower. The VA allows veterans to transfer their remaining entitlement to another property, allowing them to purchase another home without depletion of their previous one.
Why Would You Transfer Your VA Home Loan?
VA home loan transfer may be necessary when a veteran wants to move to a new location, upgrade to a bigger or better home, or sell their current property to another qualified VA borrower. Transferring your VA home loan is also an option when a veteran wants to refinance their current VA loan into a non-VA loan or to another VA loan.
Who is Eligible to Transfer their VA Home Loan?
Not all VA home loan borrowers are eligible to transfer their VA home loan. To be eligible, you must:
Eligibility Criteria |
Requirements |
|---|---|
Have used full entitlement on a property already |
Must have paid off the previous VA loan or sell the property with the VA loan assuming |
Have partial entitlement remaining |
Must sell the property with the VA loan assuming, or the new borrower must pay off the VA loan |
What are the Requirements for VA Home Loan Transfer?
The requirements for VA home loan transfer depend on what kind of transfer the borrower wishes to make:
Transfer to Another Property
To transfer your VA home loan entitlement to another property, you must:
- Be an eligible and qualified veteran borrower
- Have remaining entitlement
- Intend to occupy the property as your primary residence
- Use a new VA-approved lender for the new property
- Comply with VA loan limits and other requirements
Transfer to Another Borrower
To transfer your VA home loan entitlement to another borrower, you must:
- Be an eligible and qualified veteran borrower
- Have remaining entitlement
- Be approved by the VA and the new borrower must also be eligible
- Use a new VA-approved lender for the loan assumption
- Comply with VA loan limits and other requirements
Transfer to Refinance to Non-VA Loan
To transfer your VA home loan entitlement to refinance to a non-VA loan, you must:
- Be an eligible and qualified veteran borrower
- Have remaining entitlement
- Comply with VA loan limits and other requirements
- Refinance to a conventional, FHA, or other loan types
How to Transfer Your VA Home Loan
The process of transferring your VA home loan depends on what kind of transfer you wish to make.
Transfer to Another Property
To transfer your VA home loan entitlement to another property, you must:
- Select the property you want to purchase
- Find a VA-approved lender for your new loan
- Obtain a VA appraisal for the new property
- Apply for a new VA loan on the new property
- Provide the lender with a certificate of eligibility (COE) showing the remaining entitlement you have
- Closing on the loan, paying off the previous VA loan or selling the property with the VA loan assuming
Transfer to Another Borrower
To transfer your VA home loan entitlement to another borrower, you must:
- Find a VA-approved lender for the loan assumption
- Apply for the loan assumption with the lender and submit the necessary documents
- Be approved by the VA and the new borrower must also be eligible
- The new borrower will provide a COE showing eligibility
- Closing on the loan assumption, paying off the VA loan or selling the property with the VA loan assuming
Transfer to Refinance to Non-VA Loan
To transfer your VA home loan entitlement to refinance to a non-VA loan, you must:
- Find a new lender for the non-VA loan
- Apply for the new loan and submit the necessary documents
- Refinance to a non-VA loan
- Paying off the VA loan or selling the property with the VA loan assuming
FAQs About VA Home Loan Transfer
Q1: How Long Does It Take to Complete a VA Home Loan Transfer?
A: The length of time depends on the type of transfer you wish to make. VA home loan transfer to another property or borrower may take 30-45 days. Meanwhile, VA home loan transfer to refinance to a non-VA loan may take 45-60 days.
Q2: Can I Transfer My VA Home Loan More Than Once?
A: Yes, you can transfer your VA home loan entitlement more than once as long as you still have remaining entitlement.
Q3: Can I Transfer My VA Home Loan to a Property Outside the U.S.?
A: No, you cannot transfer your VA home loan entitlement to a property outside the U.S. Your VA home loan is only applicable to properties within the U.S. mainland, Guam, Puerto Rico, and the U.S. Virgin Islands.
Q4: Do I Need to Pay a Fee for VA Home Loan Transfer?
A: No, the VA does not charge a transfer fee for VA home loan transfer.
Q5: Can I Transfer My VA Home Loan to Someone Who is Not a Veteran?
A: No, only eligible veteran borrowers may take over a VA home loan.
Q6: Will My Credit Score Affect My Eligibility for VA Home Loan Transfer?
A: Yes, your credit score will affect your eligibility for VA home loan transfer since VA-approved lenders will assess your creditworthiness when you apply for the new loan.
Q7: Can I Transfer My VA Home Loan If My Property is Underwater?
A: Yes, you can transfer your VA home loan entitlement to another property even if your current VA loan is underwater. However, you must still meet the requirements for VA home loan transfer.
Q8: What Happens to My VA Loan Entitlement After Transfer?
A: Your VA loan entitlement will still be in use after the transfer.
Q9: Can I Transfer My VA Loan to a Property with a Higher Loan Amount?
A: Yes, you can transfer your VA home loan entitlement to a property with a higher loan amount as long as it does not exceed the VA loan limits for your area.
Q10: Can I Transfer My VA Loan if I’m Behind on My Mortgage Payment?
A: No, you cannot transfer your VA loan if you’re behind on your mortgage payment. You need to be current on your VA loan before you can start the transfer process.
Q11: Do I Need to Have a Down Payment for VA Home Loan Transfer?
A: No, VA home loan transfer does not require a down payment, but you may need to pay closing costs.
Q12: Can I Transfer My VA Loan to Another Property with an Existing Mortgage?
A: Yes, you can transfer your VA loan to another property with an existing mortgage as long as you meet the requirements for VA home loan transfer.
Q13: Can I Transfer My VA Loan to Another Property Without Selling My Current Property?
A: No, you cannot transfer your VA loan to another property without paying off the previous VA loan or selling the property with the VA loan assuming.
Conclusion
VA home loan transfer is a great option for veterans who want to move to a new location, upgrade to a bigger or better home, or sell their current property to another qualified VA borrower. It is also an option when a veteran wants to refinance their current VA loan into a non-VA loan or to another VA loan. In this article, we have discussed everything you need to know about VA home loan transfer, including the process, requirements, and FAQs. We hope that this guide has been helpful in answering your questions about VA home loan transfer and that you’ll be able to make an informed decision about your VA home loan.
Take Action Now!
If you are interested in VA home loan transfer, start by contacting a VA-approved lender for more information. They will guide you through the process and help you determine if VA home loan transfer is right for you. Don’t miss out on this great benefit for veterans and their families. Take action now!
Closing Note
The information contained in this article is for general informational purposes only and should not be taken as legal advice. VA home loan transfer has eligibility criteria and requirements that may vary depending on the borrower’s situation. We recommend that you consult with a VA-approved lender and certified financial planner to discuss your specific situation and options.