Subject to VA loan

[sanchoman]

I have a seller with a house that the owner has a va loan on it.

The loan is 1 year old as he refinanced, moved out just after the refi and we have been renting ever since.

We proposed buying subject 2 the mortgage and quietly taking title in a land trust.

The seller receives a disability check every month from the va and is fearful that if the house is transferred he may “bite the hand that feeds him” so to speak and lose his monthly benefits.

Is this possible?

[javipa]

@sanchoman post:1

I have a seller with a house that the owner has a va loan on it.

The loan is 1 year old as he refinanced, moved out just after the refi and we have been renting ever since.

We proposed buying subject 2 the mortgage and quietly taking title in a land trust.

The seller receives a disability check every month from the va and is fearful that if the house is transferred he may “bite the hand that feeds him” so to speak and lose his monthly benefits.

Is this possible?

The answer would be, “no.”

But why not call the VA to confirm that, and put the seller’s mind at ease?

[Rob_in_Atlanta]

Transferring a property into a trust is not a ‘red flag’ for any lender as it is a common financial planning and estate planning strategy. Make your agreement, quit claim into a trust, you control the trust and accomplish all of your goals.

This has nothing to do with any other benefits he currently receives.

Hope this helps.

RC