Are you a military member or veteran wondering if selling homes with VA loans is possible? If so, you’re not alone. As with any real estate transaction, offloading property with existing VA home loans has its benefits and drawbacks.
We buy houses in Gallatin, TN, at My Tennessee Home Solution, including those with unique mortgage situations. Here, we explain what you should know about VA loans and home sales.
Is Selling a Property You Buy With a VA Loan Possible?
If you buy a house using your VA loan benefit, you don’t have to wait until you pay off the mortgage to sell it and relocate. Mortgage lenders sometimes recommend waiting at least one year before putting the property on the market. However, it’s not a requirement.
Does It Cost Much To Sell a VA Loan Home?
Does selling a home with a VA loan come with expenses? The short answer is yes, but the amount depends on each homeowner’s unique situation.
The VA funding fee is usually the biggest closing expense. Although the buyer typically pays, the seller may assume responsibility for payment during the negotiation process.
The Department of Veterans Affairs allows sellers to pay a maximum of 4% in concessions. The VA also won’t allow its borrowers to pay for certain fees, including:
- Real estate agent fees
- Application fees
- Escrow fees
Pros and Cons of Selling a VA Loan House
Unless your home sale exceeds your loan amount, you’ll lose a portion of your VA entitlement. If some of your benefits remain after the sale, you can use them to purchase a new property.
However, VA loan assumption is possible if a qualifying buyer wants to take over your existing loan. Full loan repayment and loan assumption will restore your benefits, allowing you to get another property at your full benefit amount. Homes with assumable VA loans tend to sell quickly, and VA appraisals are often not required.
Close on Your House Fast With Help From My Tennessee Home Solution
Selling homes with VA loans is certainly possible. Working with a cash home buyer, such as My Tennessee Home Solution, can expedite the process. Our veteran-owned business specializes in off-market purchases of residential properties throughout Gallatin, Tennessee, regardless of the home’s condition.
Ready to get your fair cash offer and learn more house-selling tips? Contact My Tennessee Home Solution at (615) 933-5431 today!
Frequently Asked Questions About Selling Houses With VA Loans
Will Selling My House Affect My VA Loan Entitlement?
Yes, each time you use your benefit, you lose some of your remaining entitlement. Selling the property and paying off the loan restores the entitlement.
Why Would I Need To Sell My House With an Existing VA Loan?
Military relocation, upsizing, downsizing, and financial problems are reasons you might consider selling your property with a VA loan.
What Is a Certificate of Eligibility?
A Certificate of Eligibility is your VA loan verification.
What Are the Occupancy Requirements for VA Home Loans?
Part of the VA loan occupancy requirements include using the property as a primary residence.
