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However, this is not true. In order to clear all your dues, you have to inform the Veterans Administration and / or your lender and request them to transfer the liability of the loan to the new owner of the property.
After the request is made for the transfer of liability, the borrower then has to request for a Release from Liability letter from the Veterans Administration. Once you receive the letter, you are free from your obligations to the VA loan.
There are exceptions to the release from liability letter. If you have closed your VA loan before March 1, 1988, no letter is required. However, it is in your interest to request a release from liability from the Veterans Administration.
You can sell a home bought using a VA loan like any other piece of real estate property. All you need to do is find a buyer for your property.
As a veteran, you are eligible to get VA financing. In order to take advantage of this, you have to be a veteran who served on active duty and have a discharge after minimum of 90 days of service during wartime and minimum of 181 continuous days during peacetime. Your discharge can be anything other than dishonorable discharge.
The Veterans Administration guarantees a portion of the loan so the risk on the lender reduces dramatically. Although there is no set limit for a VA loan, the lender will set his own limit as many of the VA loans are sold in the secondary market. You can get a VA loan from a bank, savings and loan institute, or a mortgage company. As the loan is guaranteed, you do not have to make a down payment.
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