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If a VA loan is being assumed and the veteran wants full guaranty entitlement reinstated, the veteran must pay off a previous VA loan or

a) The lender absorbs the existing loan
b) The VA absorbs the existing loan
c) The seller covers the existing loan
d) The new buyer assumes the existing loan

User MrName
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1 Answer

5 votes

Final answer:

To have full guaranty entitlement reinstated on a VA loan, the veteran must either pay off the previous VA loan or have the new buyer assume responsibility for the existing loan.

Step-by-step explanation:

If a VA loan is being assumed and the veteran wants full guaranty entitlement reinstated, the veteran must pay off a previous VA loan or d) The new buyer assumes the existing loan. Essentially, in order for the veteran's full guaranty entitlement to be reinstated for a new loan, the responsibility for the old loan needs to be transferred to someone else, which in this case is the new buyer of the property.

User Alex Luis Arias
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8.3k points