However, there are two different ways of selling a home. Both these methods have their own set of advantages and disadvantages, and sellers must decide depending on their objectives and requirements.

1. In one method, veterans may have to facilitate or convince the buyer to take another loan so that the existing mortgage on the home is paid off. This method is advantageous because the entire loan is paid up by the buyer. Since there are no prepayment penalties on a VA loan, this method provides peace of mind to the seller as he need not worry anymore about monthly payments. Moreover, the entire VA entitlement of the seller is restored in case the already existing mortgage loan is completely paid back. However, the disadvantage of this method is that the property has to be appraised by a certified appraisal officer before selling the property. As a result, the seller might be required to bear certain expenses involved in getting the home repaired. And also the closing costs tend to be higher.
2. In another method, the buyer is required to assume the loan and make the payments that are associated with the loan. The advantage in this method is that seller can save good amount of money since the overall processing charges are less. Moreover, the buyer is acquiring an already existing loan. Hence, no appraisal is required on the property and also the closing costs are less. Seller does not have to spend extra money in getting the home repaired. However, the disadvantage is that the seller cannot restore his/her complete VA entitlement until the entire loan amount is paid back. In case, the buyer defaults with the loan payments, then the seller becomes responsible for the repayment.