Additional Resources

Assuming a loan has the appeal of saving considerable cost on the processing and fees, while gaining access to more favorable terms on a loan than may be available on a new loan due to changes in the market.

No; Both civilians and veterans can assume a VA loan.

Note: Some important considerations need to be made if a civilian will be assuming a VA loan.

Although the whole mortgage loan process isn't being started from the beginning with an assumption, assumptions tend to take longer (sometimes significantly longer). 

The current holder or servicer of the loan (the entity the homeowner make their mortgage payments to) is who the seller will contact in order to request assumption instructions.

In order to assume a VA loan, the buyer must be using the property the loan is secured by as a primary residence, meaning the owner will occupy the property as their home.

Essentially, yes. The buyer assuming a VA loan must be creditworthy, meaning they are able to meet the requirements of the loan holder/servicer such as income, credit history, debt-to-income ratio, employment history, etc. To find out if you qualify for a VA loan, Click Here and get in touch with an expert.

More sellers are starting to advertise their homes for sale with the option to assume the existing loan, be that an FHA or VA loan. Listing agents want to serve their sellers well and add information regarding assumable loans with the listing of the property. Searching for listed properties on websites that have information from the Multiple Listing Service is an easy way to find these properties. We have a few short videos showing you how to do this. Click Here to visit that part of our website.