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Where a building is being purchased with a mortgage, and the applicant has equity in the building, can the equity be used as part of the matching funds?

April 26, 2017applicant building equity funds matching mortgage Used

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Where a building is being purchased with a mortgage, and the applicant has equity in the building, can the equity be used as part of the matching funds?

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Possibly. If the applicant proposes to use VA funds to complete the purchase of a building, the applicant must ensure that the mortgage contract allows the mortgage to be pre-paid (e.g., paid in full at the time VA provides payment of the grant award).