Finance
A Texas property has an existing assumable VA loan at 3.5% interest. A new buyer who is not a veteran:
ACannot assume a VA loan under any circumstances
BMay assume the VA loan with lender approval, but the original veteran's VA entitlement remains tied up until the loan is paid off✓ Correct
CCan assume the loan and automatically restore the veteran's entitlement
DMust qualify under VA guidelines as if obtaining a new VA loan
Explanation
VA loans are generally assumable with lender approval. However, if a non-veteran assumes the loan, the original veteran's VA entitlement remains tied up and is not restored until the loan is paid in full, unless a qualified veteran substitutes their entitlement.
Related Texas Finance Questions
- Under the TRID (TILA-RESPA Integrated Disclosure) rules, which fee cannot increase at all between the Loan Estimate and Closing Disclosure (Zero Tolerance)?
- In Texas, a 'hard money' loan is characterized by:
- A Texas mortgage with a due-on-sale clause means:
- A Texas mortgage statement shows an escrow impound account. This account is used to:
- Texas non-judicial foreclosure sales take place on:
- A Texas borrower is considering a 15-year mortgage versus a 30-year mortgage at the same interest rate. Which statement is TRUE?
- The primary purpose of PMI (Private Mortgage Insurance) in Texas is to:
- A Texas 'piggyback' loan structure (80/10/10) means:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →