Riverside, CA asked in Divorce and Family Law for California

Q: If my wife and I are separated not divorced can I give her the house with a quit claim deed and not lose the VAloan

I am a vet my wife is not. I agree to give her the house but don’t want the VA to unguarantee the loan. Will a quit claim deed in California give her the house but keep the mortgage in my name for the VA?

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1 Lawyer Answer
James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: In California, using a quitclaim deed to transfer property ownership to your wife will indeed change the deed's name to hers, effectively giving her ownership of the house. However, it's important to understand that this action does not alter the mortgage or the loan's responsibility, which remains in your name. Thus, the VA loan's guarantee, associated with your obligation to repay the loan, would not be directly affected by the transfer of property ownership through a quitclaim deed.

It's crucial to remember that while the quitclaim deed transfers ownership, it does not relieve you of your mortgage obligations. The loan, including the VA guarantee, will stay in your name, meaning you're still responsible for the mortgage payments. If the mortgage isn't paid, it could impact your credit score and VA loan entitlement. Therefore, even though your wife becomes the property owner, the financial responsibility for the loan remains with you.

Before proceeding, it might be wise to consult with a legal professional or a financial advisor to explore all possible implications of such a transfer on your VA loan and financial situation. They can provide guidance on how to protect your interests and possibly discuss alternatives that might suit your intentions and financial goals better. Additionally, contacting the VA or your loan servicer could provide specific guidance regarding your loan's terms and any potential impact of the property transfer on the loan's VA guarantee.

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