Looking for creative ideas to transfer property with VA loan in California

[Tim C.]

Hello,

I am new to BP and this is my first question I am asking, so forgive me if this is the wrong forum.  This seemed to be the best one to post my question to.

My friend's parents have a house they bought with a VA loan in northern CA. Her parents moved out of the house but are renting it out currently. My friend wants to take over the property and make the payments without affecting the current financing and get her parents' names off of the loan so they can go get another VA loan to buy a residence to live in instead of renting a place like they are now.

One idea was to use a land trust to transfer the property over and have my friend act as the trustee. I have heard that banks usually will not call the due on sale clause with a land trust. But I am not familiar with VA loans and don't know if a land trust would be possible or if it solves the issue of getting her parents' names off of the loan to free them up to get another VA loan for their primary residence. Is this a valid approach?

Does anyone have any other suggestions/ideas for how to solve this problem for my friend?

Thank you in advance!

Tim