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I have recently inherited a home from my mother who just passed away. My sister and I are joint owners. Can I refinance with VA?

by botelhos4god835 from , California. Jul 23rd 2014 Reply


Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

I don't believe you can use the VA with your sister also being part owner. I'd check in with the VA directly to explain the situation and ask for guidance and to confirm your benefits to use the VA for this loan. Good Luck!

Jul 23rd 2014
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Jericho Cherry (Jerichocherry)
#54 ranked lender in Virginia - 1,107 contributions

Follow Steven advice on this one.

Jul 23rd 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Usually a VA loan is not allowed with another owner who is not your spouse but I'm checking to see if the loan amount compared to the value of the home makes a difference. As long as you have at least 3-5% equity in the home you would have other options for the loan, but VA will usually have the best rate, terms and underwriting flexibility.

Jul 23rd 2014
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

So there's a lot of questions I would be asking to properly advise you.. Is there currently a loan on the property? What the balance? what's the home worth? What's the current interest rate? The law says that if you inherit a home that has a outstanding loan on it, then you are allowed to assume the existing loan without qualifying.. So long as the payments are made on time, you will have no issues. This would be the ideal way to go about financing.. just leave the existing loan in place.. however if the interest rate on this loan is over 4.5% then you might want to consider refinancing just to lower the rate. If you have more than 20% equity in the home, then you wont need to use your VA benefits to refinance.. you can use conventional, and joint ownership is allowed.. VA also allows this type of joint ownership, however not ever lender will allow it, so you would need to shop around. With all the unanswered questions, it's best you contact a local mortgage broker, and let him look at the complete loan profile. Once he sees the complete picture, he can advise you to which loan product would be best for your particular scenario.. Good luck.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jul 23rd 2014
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Al Hensling (alhensling)
#438 ranked lender in California - 14 contributions

Yes it is possible to refinance the home with your Sister. It is a process that most Lenders are not familiar with. We are an Approved VA Lender and would be pleased to assist you.

Jul 23rd 2014
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Al Hensling (alhensling)
#438 ranked lender in California - 14 contributions

Yes it is possible to Refinance with your Siister. A seldom used and little known component in the VA guidelines can allow this.We would be happy to assiat you.

Jul 23rd 2014
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