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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The veteran seller would be a fool to agree to it.

We are in the process of buying a home where we are assuming a VA loan (2.75%) but my spouse has VA eligibility, so the seller will not lose theirs.

There were three offers on the house:
Offer 1 was doing a conventional loan but offered less than asking

Offer 2 offered asking, but was a civilian wanting to assume their VA loan

Offer 3 (us) offered asking, wanted to assume their VA loan, but would use our own eligibility.  
Obviously ours was the strongest offer.

Unless you are buying in a strong buyers market and the seller is desparate, I think you will have a difficult time getting the seller to agree to it.[/quote]

We both have VA eligibility.  Only using mine on our current house, so I would have no issue having a civilian assume the loan.  I think there are quite a few dual veteran households.  [/quote]

PP you quoted here.  I've been discussing this with my husband a lot so I'm responding again.

I still think it would be a bad idea for you to allow a random civilian to assume your VA loan.   Sure, you'd still have your spouse's VA eligibility, but what if you get divorced?   Or what if your spouse dies?   Your eligibility could still be tied up for decades and you can no longer use your spouse's VA benefits.

I've also read that if the civilian defaults on the loan, it can negatively impact the veteran who originally held it.

I can really only think of a few situations where it would be a good idea for a veteran to allow a civilian to assume their loan:

1.   If the civilian buyer is their own child.   As parents, we make all kinds of huge sacrifices for our children, so I can understand that in some situations, this would be a sacrifice a parent would be willing to make.

2.  If the seller was absolutely desperate and facing imminent foreclosure.

3.  If the veteran home owner is dead.     If they are dead, they won't be able to use their eligibility again anyway, so it would make sense that the veteran's heirs would be willing to allow a buyer to assume it (if it's allowed under VA rules?   I don't even know that as a fact, but if it is allowed...)[/quote]

It does not affect credit if the civilian defaults.  We are not looking to sell, but I have a house that [b]we owe approx $1.65 m on[/b] at a 2.5% interest and it is valued at about $2.35 m right now.  I suspect we could get more than the $2.35 if it came with assuming the $1.65 at 2.5%.  The benefits of having a VA home loan for me would be minimal if we could make more money off the house. [/quote]

I had no idea you could get VA loans that high![/quote]

This doesn’t sound right.  There are limits.  [/quote]
As of 2020, if you have full entitlement there is no loan limit. [/quote]

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