Transform Your Knowledge
This is the Go-To resource for VA loan assumption information to guide your decision making.
Discovery Panel: Explore VA Loan Assumption Topics
What Is a VA Loan Assumption?
Will This Strategy Work For Me?
What Is a VA Loan Assumption?
Establish a simple understanding of what a VA loan assumption is and expand into greater detail.
What Is The General Process?
Will This Strategy Work For Me?
What Is a VA Loan Assumption?
Let's break the process down into a few simplified steps and highlight the key details to completing a VA loan assumption.
Will This Strategy Work For Me?
Will This Strategy Work For Me?
Will This Strategy Work For Me?
Here are considerations to make to better determine whether or not assuming a VA loan is an optimal option for you.
How Do The Numbers Compare?
Connect with Assumption Coordinator
Will This Strategy Work For Me?
Get a scope of the costs and timelines associated with assuming a VA loan in comparison to starting from the beginning with a new loan.
Connect with Assumption Coordinator
Connect with Assumption Coordinator
Connect with Assumption Coordinator
Speak with a professional about your specific scenario. This is the "easy button" to find specific answers to your scenario.
Get Connected - Join Our Community!
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Connect with Assumption Coordinator
Join our community of active home buyers and sellers and stay connected with the latest trends and insights.
VA Loan Assumption Insurance
VA Loan Assumption Insurance
VA Loan Assumption Insurance
Reach out to discuss loan assumption insurance options. Time and resources are limited and being unprepared for the unexpected can put them at risk. Let us be an additional security layer to back up your plans of home purchasing.
VA Loan Expert-Insight eBook
VA Loan Assumption Insurance
VA Loan Assumption Insurance
It's no wonder the tricks of the trade are so valuable, and also hard earned. The experience required to fully understand the finer details and nuances and put that information to work makes all the difference. Gain greater insight into loan assumptions with our Exclusive eBook.
Frequently Asked Questions
VA Loan Assumption Insurance
Frequently Asked Questions
Sometimes you don't know what questions to ask if you don't even know what you don't know. Explore various considerations to be made regarding assuming a VA loan and continue expanding your knowledge on the subject.
Why Utilize Us as a Resource?
You wouldn't be the first to assume a VA loan. Consider a few examples of how assumptions have gone and learn how to avoid the chaos.
- Unsuccessful Examples
- A couple, relocating for work and planning to move within three months, found a home for sale with an assumable VA loan that matched their budget. They reached an agreement with the seller to take over the loan. The listing agent, inexperienced in such transactions, prompted the seller to consult the loan servicer, who provided an instruction packet. Despite completing and returning the packet promptly, the servicer's slow processing, taking two months, led to the buyer's disapproval for loan assumption. This delay wasted precious time, forcing the buyer to explore alternative options and the seller to miss out on other potential offers.
- Two friends, one a civilian and the other an active duty service member, discussed their housing situations. The civilian was renting an apartment, while the service member was a homeowner with a mortgage. When the service member received Permanent Change of Station (PCS) orders to a new base, the civilian expressed interest in buying the service member's house. To facilitate this, they initiated a loan assumption process with the loan servicer. After several weeks of exchanging documents and information, the assumption was finalized. However, when the service member began house-hunting at the new location and engaged with a lender, it was discovered that their VA entitlement was still tied to the assumed loan, necessitating an out-of-pocket expense to cover the shortfall.
- Successful Examples
- A service member received Permanent Change of Station (PCS) orders to a base where a friend had been stationed years earlier. Coincidentally, her friend was relocating to a different city. Rather than selling the home through traditional means, they discussed a loan assumption. The seller reached out to their loan servicer to initiate the process. Despite the need for coordination among the buyer, seller, and loan servicer, and timing that wasn't seamless, the transaction was successful. The seller transferred the loan to the buyer, who saved significantly upfront and secured an excellent monthly payment. A substitution of entitlement was also completed, allowing the seller to use her VA eligibility for a future home purchase. Both parties saved on the transaction and capitalized on the opportunity.
- A couple relocating to a different state was drawn to the idea of assuming a VA loan, mainly because of the low interest rate. They discovered a property for sale offering the chance to take over the seller's VA loan. Upon contacting the seller, they learned they needed to cover the gap between the sale price and the remaining loan balance. Lacking the immediate funds but keen on the property and its financing terms, the couple, who had a solid income, negotiated with the seller. Since the seller did not require their VA entitlement for their next home purchase and saw an opportunity to profit further with seller financing, they agreed to accept payments for the equity difference over time, with interest. This arrangement allowed the buyers to secure a home they adored with terms that were beneficial for all parties to the transaction.
Our Services
- Inform - We provide insight gained from real loan assumption experiences. We clearly convey the potential risks of the loan assumption process. We articulate effective strategies for mitigating the chaos that can unravel in trying to create a positive scenario for all parties involved in a VA loan assumption.
- Consult - We provide free consultation for your specific scenario when you reach out to have that discussion. Our VA Loan Assumption eBook provides in depth references and examples of The VA Loan Assumption process.
- Loan Assumption Coordination - If you decide to proceed with a VA loan assumption, we can assist you by:
- Avoiding entitlement issues
- Increasing the likelihood of assumption success
- Providing peace of mind knowing the assumption is being managed diligently, accurately, and professionally
- Providing faster assumption approvals
- Communicating with all parties involved to get the assumption completed
- Provide Backup Strategies - Our consultants work with you to establish a concrete backup plan if the assumption happens to fall through. We help frame the back up plans to the assumption so that they may be presented and agreed upon in the initial purchase agreement.
Our Focus Is Simple
Assuming a loan financed at 2.5% can save you thousands of dollars every year in interest with rates now between 5% and 7%. A $400,000 house financed at 2.5% is $1,580 Principle & Interest (P&I). At 6.5% the monthly P&I is $2,528.
Loan assumptions are an important and popular tool to home affordability. We are entering the 3rd year from when interest rates were in the 2's and 3's, which means more and more sellers will be offering loan assumptions as more and more of these homeowners receive PCS orders and job changes requiring them to sell and move.
We want all parties to understand irregularities in the assumption process and have agreeable and well thought out alternative plans in case the assumption takes longer than tolerable or is denied.