Selling a 30yr fix VA @ 3.25%

I am thinking of letting someone assume my 30 yr. fix VA loan @ 3.25% for some cash is this legal? The only catch is the house is about 15k underwater which the buyer would have to eat how much should I expect to get if any the house is 6 yrs. old and the payoff is $205,800 the house could sell for about the low $190s here in NW Florida

1 Answer

Need to look at your deed of trust, it will detail the conditions under which you can let a buyer assume the mortgage. Please note that doing so will not fully restore your VA entitlement, and could impact the purchase price for a new home if you're planning to purchase using a VA loan. Whether it's worth 16K for a buyer to assume your very low rate mortgage is another matter. For many folks it wouldn't be. An assumable low rate mortgage can be a great thing, but in this case the amount you're underwater may be more of a deterrent than the attraction of 3.25%