Avoiding Due on Sale with VA Loans

April 12, 2024•1 min read

Avoiding Due on Sale
with VA Loans

Contract for Deed not a Conveyance

Did you know the VA doesn't consider an installment sale contract to be a conveyance, meaning lenders can't call the note due? There should be no due on sale for a property bought/sold via contract for deed!

GET A SECOND OPINION, but our plain-language reading of the VA loan pamphlet indicates that selling on a Contract for Deed does not allow the lender to accelerate the loan!

Refer to the Opinion Letter issued in 1991 (pictured here) and VA Pamphlet 26-7, Chapter 5, Section 6.s. "Unrestricted Transfers" (free download)

Connect with Creative TC if you have a deal and want the best guidance. Book a call from our homepage: www.creativetc.io

VA loansDue on saleContract for DeedConveyanceLender accelerationOpinion LetterVA PamphletUnrestricted transferssubtoGuidance

Caleb Christopher

I help you do creative finance deals well. I started Creative TC (www.creativetc.io) to be the safety railing that is so dearly needed in the wild west of creative finance. I pump educational content on Instagram and YouTube, and frequent REIAs as a guest speaker on creative finance. ** Connect ...

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