Upon Death, What Happens to my VA Home Loan?

by Francisco Lozano, VA Loan Specialist, DirectVA Loan.com

Okay, so I received a question from a Veteran today asking “I would like to know if I died before this VA Home Mortgage Loan is paid off would my children be able to assume the note if there is a balance?” 

Well, after a Veteran buys the home and gets a VA Loan, it’s under the Veterans "ownership”.

From that point on, it’s a matter of law as to what happens to the property upon the passing away of the Veteran.

While I am NOT a lawyer and one should consult a Real Estate lawyer in one’s area for exact law governing what happens to one’s "estate" upon passing, I can say that if you set up a "Last Will and Testament", the estate will probably be able to pass to whomever it’s directed to.  In the absence of a "Last Will and Testament", the state will direct the ownership of the assets to whomever it deems legally rightful.  Usually, that would be the spouse.

Now, as for the loan, the lender will be abiding by the agreement and will accept the payments from whomever owns the estate.  They would NOT need to refinance the loan. 

Of course, for exact and correct LEGAL advice on this issue, please consult a local real estate attorney.

So, when you are ready to apply, simply fill out our Residential Loan Application

Please make sure your credit score is above 580, you have no bankruptcy in the last 2 years and have the income to support the monthly payment.

Once completed and submitted, we will process.

Within 2 business days, we will contact you with an answer.