Re: Hey Everyone, Loan Being Called. - Posted by Dave T
Posted by Dave T on July 22, 2001 at 01:03:56:
VA repo loans, if VA financing is used, are guaranteed by the Department of Veterans Affairs. VA does not permit VA streamline refinancing for non-owner occupied properties. It seems that Countrywide is following and applying the VA rules to your loans.
VA repo loans have a qualifying assumption clause, saying: “This loan may not be assumed without the prior approval of the Department of Veterans Affairs, or its authorized agent, successors or assigns.”
Further on there is another clause that says:
“This loan may be declared due and payable upon transfer of the property securing such loan to any transferee, unless the acceptability of the assumption of the loan is established either pursuant to the provisions of 38 U.S.C. Section 3714, or by the loan holder if the loan has been sold without recourse.”
Elsewhere in the document the maximum assumption fee is set at $300 (unless a lower amount was in force when the loan originated).
If you can find all these clauses in your note (or deed of trust note), then you have a VA guaranteed loan.
The chief difference between a VA repo loan and a veteran’s loan is that you get to bring a down payment to the settlement table, but you don’t have an owner-occupancy rule. Veterans get 100% financing, but they must owner-occupy. Veterans can also add closing costs and the VA funding fee onto their loan. You must pay these items out of pocket. In these respects, your VA repo loan is not the same as a vet’s loan. Otherwise, the loan guarantee program is the same, the loan servicing is the same, the assumability features are the same, and the DOS provisions are the same.