Selling your home can get complicated depending on the type of loan you used to buy it. For instance, if you’re a service member or a veteran, you might be wondering how to go about selling a home with a VA loan.
Read on to get some insight into this type of home selling process and learn how you can sell your house fast in Pittsburgh.
Selling a House With a VA Loan: Is It Possible?
The short answer is yes, it is possible to sell a house you bought with a VA loan, which is one of the few loan types available for potential homeowners. What’s more, you don’t have to wait for a specific period of time to pass before doing so.
While your lender might prefer you to keep the property for a minimum of a year or at least until you’ve built enough home equity to break even, there is no prepayment penalty. Whether you have a legitimate reason or are just looking to downsize or upsize, you can sell the house before the loan term ends.
What To Expect When You Sell a House With a VA Loan
The key thing to keep in mind is that you might not receive all the proceeds. This is because the money you get will first go to paying off the outstanding mortgage balance, as well as the real estate closing costs.
When selling a home with a VA loan, you could let a veteran or civilian assume the loan. The VA loan assumption option can be quite attractive, especially if your mortgage rate is below that of the current market.
Clearing the balance ensures VA loan entitlement restoration. When this happens, you’ll be able to use your VA benefit in the future. However, if a civilian assumes the loan, your entitlement will remain tied to that home.
What if You Have Negative Equity?
If you’re considering selling a home with these loans, you should always first talk to your lender. They will let you know about your mortgage payoff amount as well as your current home equity.
While negative equity can make it harder to sell the house, it will still be possible to do so thanks to something called a short sale. Short sales allow homeowners to sell their properties for less than the outstanding loan balance. As a result, lenders get some cash back and avoid the expense and hassle of foreclosure.
There are a few downsides, though. For starters, you’ll find it harder to buy a home in the future. Also, you won’t get your original down payment, and your credit score will be impacted.
Sell Your Pittsburgh Home Fast
Regardless of your reasons for wanting to sell a house before paying it off, whether you have a VA loan or some other arrangement, you’re well within your rights to do so. What’s more, thanks to our quick and fair cash offers, you can complete the process easily and much more quickly than a traditional sale.
Call Sell Pittsburgh Now, LLC, at (412) 275-5238 to get a cash offer today.