Troop Tuesday: The VA Loan Feature Almost Nobody Talks About

Here's a VA loan feature that doesn't get talked about nearly enough: assumability. 


By law, every VA loan is assumable — meaning a qualified buyer (veteran or civilian) can step into the seller's existing mortgage and inherit their rate, balance, and remaining term. With rates sitting near 6.5% today and plenty of veterans holding VA loans from 2020-2022 at 2.5% to 3.5%, that gap can mean real monthly savings — often $400 to $800 a month on a $400,000 balance. The assumption fee is just 0.5% of the loan balance, far less than the 2.15% to 3.30% funding fee on a new VA loan. 


It's not the easiest path — assumptions typically take 45 to 120 days, the buyer still has to qualify with the servicer, and you'll need to cover the gap between the sale price and the remaining balance. But for the right buyer and seller, it can be a serious advantage. If you're buying or selling and want to know whether assumption makes sense for your situation, talk to a MIL-Estate agent who actually understands how this works. Head to our website to find a Veteran or Military Spouse agent in your area www.mil-estate.com

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