What Happens To A Va Loan In A Divorce
In the event of a divorce involving a VA loan, several scenarios could unfold, depending on the specific circumstances of the divorce and the agreements reached by the parties involved. Here are some possible outcomes: Continued Joint Ownership and Liability : If both spouses are listed as borrowers on the VA loan and continue to jointly own the property after the divorce, they will typically remain jointly liable for the loan. Both parties would continue to be responsible for making payments on the loan unless one party refinances the loan or the property is sold. Refinancing or Assumption : One option is for one spouse to refinance the VA loan in their name alone or to assume the loan, removing the other spouse's name from the loan and transferring sole ownership of the property to one party. This may require meeting the lender's eligibility requirements for creditworthiness and income. Sale of the Property : Another option is for the divorcing couple to sell the property a...