Creative Finance Hybrid solution with VA loan

[Tyler Eastridge]

    Hello,

I have a friend who is trying to sell his house quickly to move to a different city with his wife and kids. He currently has a 2.8% interest rate with about 232K left on the mortgage. The mortgage is a VA loan. I wanted to get some insight on whether it is possible to take over the property partially subject-to and partially seller finance or a lease option since I know VA loans have a few more stipulations than normal conventional loans. There is about at least 100k in equity and is in an up and coming part of town. Thank you!

[John Norman]

Quote from @Tyler Eastridge:

    Hello,

I have a friend who is trying to sell his house quickly to move to a different city with his wife and kids. He currently has a 2.8% interest rate with about 232K left on the mortgage. The mortgage is a VA loan. I wanted to get some insight on whether it is possible to take over the property partially subject-to and partially seller finance or a lease option since I know VA loans have a few more stipulations than normal conventional loans. There is about at least 100k in equity and is in an up and coming part of town. Thank you!

To answer your question, yes, you can take a VA loan sub-to and seller can seller finance any equity balance.

However, the sellers VA entitlement would be stuck with the house, so make sure that the seller isn't planning on needing to use their full VA entitlement for another purchase. Entitlement is typically the only hang up with VA sub-to deals