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Advantages and Disadvantages of VA Assumable Mortgages

In this ever-changing real estate market, navigating as a buyer or seller can be challenging. There are many factors to consider, including interest rates, inventory, home prices, and more.

Advantages And Disadvantages Of VA Assumable Loans - Karina Gafford - Homefront United Real Estate - - San Antonio Real Estate

One type of mortgage that can give you an upper hand in the current market is an assumable mortgage. Let’s dive into what an assumable mortgage is and the advantages and disadvantages of assuming a VA mortgage. 

What Is An Assumable Mortgage?

Assumable mortgages allow a buyer to purchase a home by taking over the current owner’s mortgage loan. The mortgage loan includes the interest rate, repayment term, current principal balance, and any other terms of the existing mortgage. Essentially, the partway paid-off mortgage is transferred from the seller to the buyer while all other terms remain the same.

Not all mortgages are assumable, including a majority of conventional loans, but one type of assumable loan is a VA loan.

VA Assumable Loans

In order to assume a VA loan, you must be a qualified military member or spouse. Veterans Affairs does not require you to be a current military member to qualify, but the lender and VA office will still need to approve the buyer for the loan assumption. Not all VA lenders allow assumptions, but anyone the lender deems qualified to take over the payment can make the VA loan assumption.


  • Buyers can avoid closing costs and appraisal fees.
  • VA assumption funding fees are only 0.5% compared to 2.15% for a first-time VA loan.
  • Buyers can get lower interest rates compared to a new loan.
  • Can be used as a huge marketing tool for sellers who would consider assuming a VA loan.


  • Some VA lenders don’t have the authority to assume VA loans and must send a request to be reviewed by a VA loan office.
  • If the VA loan is assumed by a civilian buyer, the remaining portion of the seller’s VA entitlement stays with the original loan, and the veteran can’t get the remaining eligibility until the loan is paid.
  • Higher down payments might be required if the seller sells the home for more money than they owe.

If you’re considering a VA assumable loan, make sure to do your research to make the best decision for you and your family. If you have any questions about assumable loans, please reach out to us! We would love to be a resource for you!