What is the VA funding fee for loan assumptions?

The VA charges a 0.5% funding fee on the remaining loan balance for loan assumptions. This is significantly lower than the funding fee for new VA loans, which can go up to 3.6% for subsequent uses.

Are all VA loans assumable?

Most VA loans are assumable. Our team needs to verify the loan is eligible for assumption by reviewing the original loan documents or checking with the lender.

How does VA entitlement work in a loan assumption?

When a veteran sells a home with a VA loan, their entitlement remains tied to the property unless the buyer is another veteran who substitutes their entitlement.

Can you assume a VA loan without being a veteran?

Yes, non-veterans can assume a VA loan, as long as they meet the lender’s credit and income qualifications and the Seller is willing to leave some of their entitlement on this home and loan.

Benefits of Assuming VA loan

Lower Interest Rates: Buyers can lock in the seller’s interest rate, which can be significantly lower than current market rates.

No Private Mortgage Insurance (PMI): Assumable VA loans typically don’t require PMI, saving the buyer additional costs.

Reduced Closing Costs: Since the Buyer is taking over an existing loan, they’ll often pay lower closing costs compared to securing a new loan.