can a va mortgage be transferred to another person through a divorce

Yes, at one time, all homes purchased with a VA loan were considered assumable, but since then the rules have changed. Do you know the circumstances where you are allowed to sell the home and have the seller assume the VA mortgage?In cases where a veteran home owner is getting a divorce, the VA allows what's known as an unrestricted transfer. This is allowed in cases where the military spouse and non-military partner are co-borrowers. The VA mortgage can be assumed in cases like these, but the VA strongly urges both parties to sign a release of liability so the departing co-borrower is not held liable for any credit issues that may come as a result of default or foreclosure should the occur. In cases of unrestricted transfer, the VA must approve the transaction, not the bank.VA home loans may also be assumed if the loan closed before March 1, 1988. In these cases, the loan assumption is unrestricted--the buyer assumes the VA loan without requiring the approval of the bank or the VA. One caveat to this, however--the veteran remains liable for any losses the VA may incur as a result of the loan assumption. It's very important to get some VA advice on how to protect yourself before agreeing to this type of sale, as the purchaser may be allowed to sell the home once more and let a third party assume the loan, with the veteran still liable for losses to the VA.In cases where VA loans were closed after March 1, 1988, VA loan assumption is not allowed unless you obtain prior approval from the lender. This extra step may be time consuming, but there is a benefit at the end of the process--the veteran is released from liability to the VA and doesn't have to worry about the sale of the home coming back to haunt them at a later date if the purchaser defaults on the loan.The VA warns VA mortgage holders not to proceed with a VA loan assumption in these cases without prior bank approval. Those who do could get a notice from the VA that the VA loan is "due on sale", even if all payments are on time and current.

VA loans are assumable... The new person, in conjunction with the loan holder needs to contact the current persons lender on how it works. But the BIG item is that you can't just transfer it. The NEW person needs to qualify for the loan. The second item to understand is that for the seller, unless the new person is also a vet, the sellers VA benefits will still be tied up with the house - something they may not want. For VA Loans in MN, SD, and WI - visit www.VA-IRRRL-Loan-MN.com

In the event of a divorce, the non vet spouse will not be required to qualify as would be the case if you where trying to transfer a file to another individual. The same would apply if the borrowing vet were to pass away. Under this scenario, the surviving spouse would inherit the deceased vets' benefits and would be eligible to refinance or purchase again using VA financing so long as the surviving spouse has not been remarried. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

VA Mortgage, or any mortgage for that matter, can not be transferred. In the case of a divorce, the divorce decree will detail who is responsible for the mortgage payments. If both people are on the mortgage, then the existing spouse will be relieved of the payments. However, the mortgage will still effect both people in the event of missed payments, foreclosures, or short sales. The only way for that make sure the existing spouse to be relieved of the mortgage entirely, including the credit, is to make sure the loan is refinanced by the remaining spouse or in the case of a VA mortgage, assumed by the remaining spouse. With either option, the remaining spouse must be able to qualify for the mortgage on their own.