The Department of Veterans Affairs (VA) provides veterans with immense benefits, including the ability to purchase a home with a VA loan. Veterans planning to buy a home may be able to take advantage of the benefits that VA loans offer.
If you are a veteran who used a VA loan to purchase a home, it is vital to understand the process of selling a house. This article will provide a comprehensive guide to selling a home with a VA loan in Pennsylvania.
What Is a VA Loan?
A VA loan is a special home mortgage available to veterans and backed by the Department of Veterans Affairs. This program was created to help vets finance their homes without needing a down payment or perfect credit.
VA loans have several benefits, including lower interest rates, smaller closing costs, and the option to finance up to 100% of the home’s value.
In addition, these loans are available to both veterans and their surviving spouses. If you’re eligible for a VA loan, it’s worth considering as an option for financing your next home.
What if I Want To Sell My Home With a VA Loan?
The good thing about VA loans is that you don’t have to pay the penalty for prepaying the loan. If you want to sell your home with a VA loan, you can do so without worrying about additional costs.
Lenders usually recommend that you live in the home you purchase with a VA loan for at least 12 months. However, if you decide to sell the house before that, they will also be able to accommodate you.
There are two options when selling a home with a VA loan. It depends on the type of buyer you have.
1. Sell Your Home to Any Homebuyer
Like any other homeowner, you can sell your home to any homebuyer. This is the most common option for veterans who want to sell their homes with VA loans. Since VA loans don’t have any restrictions when selling properties, you can sell your home to any buyer in the open market.
This is much easier if you’re selling to a cash buyer or someone who can qualify for another type of loan.
2. Have the Buyer Assume Your VA Loan
Whether your buyer is a veteran or a non-veteran, they can assume your VA loan. While this seems a great option, it only works out sometimes.
Not all lenders allow VA loan assumptions; even if they do, a lot of paperwork is required from the buyer. This means having a buyer assume your VA loan can take longer than selling to any homebuyer.
Final Thoughts
If you’re selling your Pennsylvania home with a VA loan, you should contact an experienced Pennsylvania real estate agent for help. The Ashley M. Miller team at Your Home Hero can help you ensure that selling your home with a VA loan is as smooth and successful as possible. Reach out to us today for more information!
