Naples VA assumable mortgages has been a topic of a few calls this week. Borrowers lately have been asking questions about the process of assumable NaplesVA loans. A Naples VA assumable mortgage/loan is one that allows a new home buyer to take over the obligation of the seller's loan with no change in loan terms. This is generally true of loans without Due-On-Sale Clauses. Due on Sale cause would prohibit an assumption of the mortgage because the note is due upon selling the property.There is two ways to assume a NaplesVA loan.
First, the new buyer is a qualified Veteran who "Substitutes" their eligibility for the eligibility of the seller. In addition, the new buyer must be able to qualify through the current NaplesVA loan parameters.
This is the safest way for a seller to allow their loan to be assumed because the new buyer is responsible for the note. You will be released from the promissary note to repay on your Naples VA mortgage.. In addition, the seller can then use their full eligibility to purchase another home right away using their VA loan.
If the new buyer is not a veteran or qualified for a Naples VA loan, they have no eligibility to give the seller. Should the seller grant permission for the new buyer to take over their loan, the seller does not get back their eligibility to use on another home, and the seller is still on the hook for the payments should the buyer default. This generally is not the best course of action. Make sure if you decide to do a assumption of the mortgage with another vet that you do not have a due on sale cause or you do not give up your elgibility rights.
Hope this information has been helpful and please review all options with your mortgage professional.
http://www.coremortgagefinancial.com/
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