Are VA Mortgages Assumable? 

If you’re thinking about selling your home, but you have a VA loan, you might wonder, “Are VA mortgages assumable?” The short answer is yes, and this can be a powerful selling point to get your full asking price. 

But as with most things in the mortgage world, the details matter. Altitude Home Loans breaks things down in simple terms so you know what to expect.

What Does It Mean for a VA Loan To Be Assumable?

When buyers ask, “Are VA mortgages assumable?” they’re really inquiring whether they can take over an existing VA loan instead of starting from scratch.

An assumable mortgage allows a buyer to do just that. It means they “assume” your interest rate, loan balance, and monthly payment. 

In today’s market, where interest rates are likely much higher than what you locked in years ago, that’s a massive perk for buyers. Imagine you locked in a 3% interest rate a few years ago. Now, mortgage rates are much higher. 

The ability for a buyer to assume your VA loan at that low rate could save them thousands over the life of the loan. That makes your home more attractive, and could even help it sell faster.

Who Can Assume a VA Loan?

A VA loan assumption isn’t limited only to veterans or active-duty service members. In many cases, a civilian buyer can assume the loan, provided they meet the lender’s qualifications. In other words, they must meet specific credit and income requirements before the deal can proceed.

For veterans, this flexibility adds a big advantage when listing a home. A potential buyer doesn’t need to meet the VA loan eligibility requirement of military service to step into your shoes.

The Catch: Lender Approval and Liability

Even though VA loans are assumable, there’s no guarantee that every buyer will qualify for a VA loan transfer. The new buyer must get lender approval. This process ensures the buyer can handle the mortgage payments and protects you from future risk.

Why does that matter? If the lender doesn’t properly release you from the mortgage liability, you could still be on the hook if the buyer stops paying. 

How To Get Started

If you’re selling your home and want to explore a VA loan assumption agreement, don’t try to navigate it alone. The rules surrounding VA loan eligibility, VA loan transfers, and lender approvals can be complex. That’s where we come in.

At Altitude Home Loans, we help buyers unlock the advantages of an assumable mortgage. We’ll guide you through every step, protect you from potential liability, and ensure the process is seamless for you and your buyer.

So, are VA mortgages assumable? Yes, but you have to do it the right way. With the proper guidance, your assumable loan could be the feature that sets your home apart in a competitive market.

Are you ready to learn more about VA loans, FHA mortgages, and other home financing options? Call Altitude Home Loans at (520) 500-1010 and we’ll help you understand your options.