Avoiding Due on Sale with VA Loans

Avoiding Due on Sale with VA Loans

Due on Sale
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

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VA loansDue on saleContract for DeedConveyanceLender accelerationOpinion LetterVA PamphletUnrestricted transferssubtoGuidance
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 ...

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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