Home / FAQs / When a veteran sells the property to someone who will assume the existing VA loan, is the veteran released automatically from personal liability for repayment of the loan?

When a veteran sells the property to someone who will assume the existing VA loan, is the veteran released automatically from personal liability for repayment of the loan?

No, they are not. The VA or lender needs to be informed of the loan if it was closed after Mar 1st, 1998, and a request needs to be approved in order to award the veteran discharge from liability. If the loan was terminated before Mar 1st, 1988, the loan may be considered without consent from the VA/lender. Nonetheless, as a veteran, you are advised to seek discharge from your liability from VA to avoid any debts to the government.

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