Va loan and a second mortgage (hel)

[Santana5]

I'm currently scheduled to close on a home equity loan through Discover. My first mortgage is a VA Loan. I had researched before and didn't foresee any issues adding a 2nd but now I have seen that the VA doesn't allow a 2nd Loan if the 2nd doesn't allow the loan to be assumed. Is this true? Do I need to cancel the application

[ShanetheMortgageMan]

Your VA mortgage only can dictate what the requirements are when you are getting the VA mortgage.  As soon as it's been closed you are free to get a home equity loan/line of credit without your VA mortgage lender having any say in the matter.

Typically the only senior liens that HEL's/HELOC's can't go behind are reverse mortgages, balloon loans, loans that allow negative amortization (making less than an interest only payment), and tax liens and judgments.  Sometimes they won't go behind interest only loans as well, but that is more rare.