A veteran and his wife purchase a home in Texas using a VA loan. Two years later, they divorce. The divorce decree awards the home to the wife, who is not a veteran. What happens to the VA loan?
Correct Answer
D) The wife must refinance into a non-VA loan because only veterans can have VA loans, and the veteran's entitlement remains committed until the VA loan is paid off or refinanced
A non-veteran cannot assume a VA loan in their own right. The wife would typically need to refinance into a non-VA loan. The veteran's entitlement remains committed to the existing VA loan until it is paid off or refinanced. The veteran can request entitlement restoration only after the loan is satisfied.
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