Wraparounds on VA Loans

[Jason W.]

Hi All - 

I'm considering wraparounds as part of my real estate investment strategy in Texas. I have 2 properties with VA mortgages and one property with a conventional mortgage that I'm considering for wraps. I've been researching wraps on VA loans and find conflicting advise, some are doing it and some say title companies have been prohibited from closing wraps on government backed loans. Looking for some advice and opinions on the topic.

Thank you,

Jason

[Jason Hirko]

@Jason W. Your loan documents will spell out exactly what you can and can't do in terms of additional encumbrances. I have never dealt with VA mortgages, but I would bet a lot of money that there is a clause prohibiting junior liens or deed transfers without the loan being paid off. Now if your question is will they put you in technical default and call the note, who knows. I wouldn't do it without a rock solid plan to pay off the mortgage at a moment's notice