Can a home with a VA loan be inherited?

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Can a home with a VA loan be inherited?

My father has a primary residence that is a duplex in R VA loan on it. He has a living trust he had a lawyer create in CA when he was living there We are all in OR now and have not added this property to his trust. What would be the best way for him to go about leaving the property to me when there is a VA loan on the home? There seems to be a lot of stipulations and rules with VA mortgages due on sale clause triggers?

Asked on September 24, 2019 under Estate Planning, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Any mortgage, especially a VA loan, must be paid off before the property can be transferred, and all commercial mortgages will have a due on transfer or sale clause, so that if the property is transferred, the mortgage becomes due in full immediately. Mortgages also become due when the mortgagor (the borrower)( dies. To make sure that home can be left to you, he has to pay off the mortgage or makes sure it is paid off when he passes (e.g. have a life insurance policy for enough to pay off the loan).


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