How does assuming a VA loan work?

How does assuming a VA loan work? The http://www.directvaloans.com VA loan FAQ video series addresses this commonly asked question. A great feature of the VA loan program is that with credit qualification the loans are assumable. If When a VA-eligible borrower buys a home from another VA borrower, the loan can often be assumed. There are two ways for a VA loan assumption to happen. If the seller agrees, the buyer can use the sellers entitlement originally used to acquire the VA mortgage. If this is the case, the seller will not be able to restore this entitlement until the VA loan is paid in full. In the second scenario the VA buyer substitutes their own entitlement for the sellers for the loan assumption. The sellers entitlement will then be immediately restored. For the complete video series and to find more answers to your most commonly asked VA loan questions visit http://www.directvaloans.com/VA-Loan-Questions/Default.aspx.

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