I’m pretty sure I know the answer here, but want to at least check.
Our current home is under a VA loan. My wife was told by a realtor we could sell this house and transfer that loan to a new house. Basically, keeping our 2.5% loan at 500k and simply placing it on another property.
I can’t imagine this is right but the realtor is adamant, and says this is a form of loan assumption. At best, it sounds like she’s being deceitful.
Just looking for a sanity check on this.
Edit- to add, she’s claiming this 2.5% rate would still be there for our next house, and the rate wouldn’t be up near 7%.
Transferring VA loan to new home after sale
byu/literallyironic11 inMilitaryFinance
Posted by literallyironic11
9 Comments
That isn’t right. You have to sell to increase the amount of VA loan you can have. It will be a new loan at new rates.
It’s possible your agent was talking about your VA loan being assumable. As an example, a prospective buyer can assume your current loan and current rate and pay or take out a loan for the difference. On this scenario it would benefit the buyer.
I am a mortgage loan officer. I can tell you with 100% certainty that the realtor is wrong.
She almost certainly has read somewhere about porting a mortgage, possibly in the National Association of Realtors magazine, which was stupid enough to write an article about it about 6 months ago, because they’re clown shoe wearing morons who use Chat GPT to write articles.
However porting a mortgage is a concept that exists in Canada, which we are not in or part of.
TLDR, No you can’t take your interest rate with you.
Nope. New home, new loan.
your agent is a moron.
That is 100% incorrect. You can’t transfer the loan rate. Someone can assume it if they buy the house from you and the loan allows. But you can’t transfer the rate.
LOL – no, this cannot be done. At least not in the US.
This is the one law I’d change if I had the power. Allow people, especially veterans, to transfer their current mortgage. Qualifying for additional is different but if someone has $300k left on their VA mortgage and bought a House for $600k, they should just have to pay the difference or take a second mortgage.
But no, currently not a thing.
Correct information, just make sure it’s legal and all the info is good to go. It’s called “Porting a mortgage.”
[https://smartasset.com/mortgage/how-does-a-mortgage-transfer-work](https://smartasset.com/mortgage/how-does-a-mortgage-transfer-work)