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Inherited a Property with a VA Loan

Posted on: 08th Dec, 2010 04:54 pm
I recently inherited a home from a Friend of mine. He had a VA loan on the property. I am not a Veteran. Can I assume his VA loan since I inherited the propety. I do not qualify for a loan of my own due to credit issues and the home is about 10K underwater at this time so selling it is out of the question. Also the Executor of the Trust is insisting I get it out of the Trust Account. Please advise if you can on this issue. Thanks
welcome skylarrr,

as you're not a veteran, you won't be able to assume the va loan. you will have to refinance it into a normal conventional loan. as the property is underwater, the lenders will not be ready to give you a refinance. it is better to let your friend remain as one of the owners of the property so that you don't have to refinance the va loan.
Posted on: 08th Dec, 2010 07:58 pm
Adonis....How can my friend remain one of the owners of the property....The property is in his Trust and the Executor of his Trust does not want this debt to remain in the Trust. I'm confused. Sorry for sounding so ignorant on the subject....but.....
Posted on: 09th Dec, 2010 10:34 am
Hi skylarrr!

Welcome to forums!

The debt needs to be paid off. Once your friend pays off the debt, he will be able to remain as one of the owners of the property.

Feel free to ask if you've further queries.

Sussane
Posted on: 09th Dec, 2010 09:48 pm
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