hard · National Real Estate Exam financing
A seller has an existing VA loan. A non-veteran buyer wants to assume the loan.
Which of the following is true regarding the seller's 'substitution of entitlement'?
- Entitlement is automatically restored as soon as the non-veteran buyer is approved for the assumption.
- The seller can restore their entitlement only if the buyer pays an additional 1% funding fee.
- The seller will not be able to restore their VA entitlement until the assumed loan is paid in full.
- Entitlement can never be restored once a loan has been assumed by a non-veteran.
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