Using VA Home Loan Entitlement
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
What if I am moving and need a new VA loan before I've sold my current home?
A subject that frequently comes up regarding VA loans is when a military member must move and buy a home before he or she can sell an existing home financed with a VA mortgage. Often times, a service person who relocates will need a new VA home loan before selling his or her current home which was financed using the VA Loan Guaranty Program. Military reassignment can mean having to sell a home quickly and purchase a new home in your newly assigned location. In such case, you may still have enough entitlement left over to purchase a new home in your new location without having to sell your existing home first. Or, you could be fortunate to sell your home fast, have your entitlement restored, and purchase a new home with your restored entitlement in your new location.
But, when real estate markets are slow and you have to sell in order to restore your entitlement for a new purchase, selling might not happen as quickly as you'd like. In 2009, a bill passed that authorizes the VA to provide assistance to military personnel who sell their homes and suffer a loss due to declines in fair market value. In some cases, the federal government may cover part of a veteran's loss if the veteran was effectively forced to sell as a result of certain military duties.
To find out more about using military benefits to coordinate a new home purchase, contact a VA loan professional.
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