VA Loan Assumption Situation NFCU

[Anonymous]

Hello, 

Has anyone ever gone through the VA loan assumption due to divorce?  Here's my situation,  me and my wife got a VA home loan together but now we going through a divorce.  I want to keep the house because I got a good deal on it and it has appreciated so much in value.  My DTI is crappy right now but income is good plus the house is currently rented.  Is the assumption process/underwriting the same as getting a new mortgage?  Value any response.

Kento..

[IOBA]

Hi,

I have not gone through your particular situation.

I would suggest that you/legal counsel put in the divorce agreement/property settlement that you get the house (list address and mortgage company), that wife signs a quick claim deed within 30 days of divorce becoming final, and that you have a set time limit to APPLY to refinance the loan in your name only.  Maybe you have 18 months?  Maybe you have 2 years?  Also address the existing escrow account for taxes/insurance.  Maybe it just rolls over with your loan.  But if it's not specifically address in the divorce papers/property settlement, then she will receive half the funds.

Let the renters know, via certified mail return receipt, that you and she are divorced and the house is yours.  All communication and rents are to go to you directly.  You should probably sign a new lease with them that does NOT include your soon to be ex-wifes name.  If you are on good terms with the renters, talk to them in person about the change in ownership and ask them to sign a new lease (which you will have with you, already to sign.)

Work diligently to reduce your debt and improve your credit scores.

Go in and talk to Navy and ask what they would like to see/have for you when you refinance/assume the loan.