Every VA loan is assumable. That means a qualified buyer — veteran or not — can take over a seller’s existing VA loan, including its interest rate, with lender and VA approval. With millions of VA loans carrying rates far below today’s market, assumptions can save buyers a fortune. They also come with real catches around equity and entitlement that both sides need to understand.
Ask listing agents, or check the listing for “assumable”. The seller’s servicer handles the assumption.
Read the video script
What if you could buy a home today and keep the seller’s 3% rate? With a VA loan assumption, you can — and you don’t even have to be a veteran. I’m Shirley Mueller.
Here’s the catch most people miss. You take over the seller’s loan balance — but you still have to cover the gap between the price and what they owe. Cash, or a second loan.
Even with a second loan at today’s rates, your blended rate can come in far below a brand-new mortgage.
Sellers: if the buyer isn’t a veteran substituting their entitlement, yours stays tied to that loan. Always get a release of liability.
Assumptions take patience — usually 45 to 120 days. I’ll quarterback the whole thing.
For buyers: the real math
Say a home sells for $400,000 and the seller owes $300,000 at 3%. You assume the $300,000 at 3% — but you still need to cover the $100,000 gap between the price and the loan. That can come from cash, or from a closed-end second mortgage at today’s rates. Even with a second loan, the blended rate can be far lower than a new loan at market rates. The assumption funding fee is 0.5% of the assumed balance.
For sellers: protect your entitlement
When a non-veteran (or a veteran who does not substitute entitlement) assumes your loan, your VA entitlement stays tied to that loan until it is paid off. You may still be able to buy again with your remaining entitlement, but your zero-down buying power may be reduced. If the buyer is an eligible veteran willing to substitute their entitlement, yours is restored. Either way, insist on a release of liability so you are not responsible if the buyer defaults.
Why assumptions take time
Assumptions are processed by the seller’s loan servicer, not a new lender, and servicers vary widely in speed. Build 45–120 days into the contract, get the servicer’s assumption package early, and work with a loan officer who can manage the file and arrange gap financing if needed.
What veterans say about working with Shirley
4.9 95 Google reviews“We have had the pleasure of working with Shirley on several home purchases and refinances, and she has consistently proven to be the best professional we've ever partnered with. Shirley's honesty and ability to present the best scenarios tailored to our needs has surpassed our expectations each time. She consistently goes above and beyond in customer service, giving us complete peace of mind about the final outcomes. We cannot recommend Shirley highly enough and she will always be our first choice when considering mortgage companies.”
October 2024 · Google review
“I recently worked with Shirley Mueller and her team, and I couldn't be happier with the experience. After shopping around with five different lenders, Shirley not only offered me the lowest rate but also provided exceptional service. She was incredibly responsive throughout the entire process, answering all my questions promptly and ensuring that everything went smoothly. I highly recommend Shirley and her team for anyone looking for the best rates and top-notch customer service!”
August 2024 · Google review
“Veterans looking for a mortgage look no further!! I was absolutely thrilled when I received my pre approval the same day. Shirley called me, and told me that I could start looking at homes. I already had one home in particular that I was sure I wanted. I went to view it the following day,and went under contract. I want to say to any of my fellow veterans who may be discouraged about applying for your VA home loan benefit, or read negative feedback about how difficult it is to aquire that is not true. The process was so easy!! I'm so excited to be a homeowner, and cannot thank the entire team @ Cross Country Mortgage enough!! I would recommend Shirley Mueller over any other VA lender out there. She kept me motivated, and dedicated to securing a home at the best rate in record time.”
August 2024 · Google review
Real Google reviews of VALoansTexas.com, shown word for word. Team members named in reviews were part of Shirley’s team at the time. Read more reviews →
VA Assumable Loan FAQ
Can a non-veteran assume a VA loan?
Yes. Any buyer who qualifies on credit and income can assume a VA loan with lender approval. The seller’s entitlement stays tied to the loan unless a veteran buyer substitutes theirs.
What is the funding fee for a VA loan assumption?
0.5% of the loan balance being assumed. Veterans receiving VA disability compensation are exempt.
How do I pay the difference between the price and the loan balance?
With cash, or with a second mortgage. Some lenders specialize in second liens for assumptions.
Does the seller lose their VA entitlement?
Not permanently — but it stays tied up until the assumed loan is paid off, unless a veteran buyer substitutes their entitlement.
How long does a VA assumption take?
Commonly 45 to 120 days, depending on the servicer.
VA Assumable Loan by state
The VA rules above are federal. Each state guide adds what changes locally — property-tax relief for disabled veterans, residual-income region, community-property rules and more.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
