Q: I am about to buy a home using the VA. After I close I would like to do a quitclaim to add my fiance. Is there anything
that prevents me from doing this?
I would contact your VA lender to ask this question. Typically, mortgage loans trigger a due on clause (payable at once) if there is a change in ownership because it is a material change. However, many lenders have a form now to request to add or amend owners by quitclaim deed.
A: Yes, due on sale and transfer clauses, insurance issues, homestead protections, loss of ownership rights, loan issues/fraud and doc stamps owed, potential Medicaid qualification amongst others probably.
A: You should read and thoroughly understand your financing documents. But let's assume that there's nothing in the financing documents that prohibits you from adding her. Adding someone to a deed or the title to a car, to whom you are not married might be one of the poorest decisions anyone can make. Once you add her to the deed, SHE OWNS THE HOUSE (or he) with you. What if you break up? (Please don't tell me how much in love you are.) What if she doesn't want to physically leave after you break up? You can't evict her. She still owns the house, and once added, you have to buy her out or she has to agree to sign over her interest in the house without compensation (I.e., buying her out). You just can't take her off the deed. Meantime, guess who is the only one responsible to the lender for payments. What if (heaven forbid) she dies before you are married? Her interest is going to be divided among her descendants or her parents. Do you want her brother or her sister to co-own your house? (Remember, the first thing you do before you enter ANY deal, contract, etc., is to figure out how to get out of it.) My advice is to wait until you are married.
A: No one should buy or sell real estate without hiring an attorney to represent them in the transaction. I am a real estate attorney and I hired one when I purchased my own home. It's money well spent to have someone advise you of all the possible things that could go wrong.
Anthony M. Avery agrees with this answer
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