What is an Assumable Mortgage? | Quicken Loans and Department of VA
♪ [music] ♪ Clayton Closson: We have a question that came in just now and this is interesting. This is about assumable mortgages. So, it’s, what is an assumable mortgage? Does that mean if I don’t ever use my VA loan, my children can use my benefit? John Bell III: I think, when we we talk about assumable mortgage in the context that we, we mentioned earlier, we’re talking about when, uhm, you own a home, you have a VA home loan, another veteran is going to come in and, uhm, take over that, uhm, you know, that mortgage. Ah, it is important to know that that veteran would have to re-qualify and there is a process of that. But, but be, uhm, that that’s the assumable part, uhm, of, of the, the panel do you wanna weigh-in, online as well, anybody can an assume it.
It don’t have to be, I’m sorry, it, ah, anybody can assume it, It’s just you have to go to that qualification right. Sorry. Terry Howell: Right. And,and one thing I wanna add is that in, in the past it was required to have the VA, it was not required for the VA to or the lender to necessarily buy off on the assumption. And from my understand since 1990 I believe it is, it’s a requirement now that, that both the VA and the lender have to, to agree to the, to the assumption. And it is really important to the veteran to make sure that they are released from the responsibility of the loan when they’ve, when the assumption’s taken. You’ll have to correct me if I’m right or wrong on that. ♪ [music] ♪