Table of Contents

7 min read May 26, 2023

Are VA Loans Assumable? An Ultimate Guide

VA loans are indeed assumable, meaning that under certain conditions, a new buyer can take over an existing VA loan with the lender’s approval. In this ultimate guide, we will explore the ins and outs of VA loan assumption and the benefits it offers.

What Is a VA Assumable Loan?

A VA assumable loan is a type of mortgage loan that allows a new borrower to take over an existing VA loan from the original borrower.

This means that the new buyer assumes the responsibility for the remaining mortgage payments, while the terms and conditions of the original VA loan remain unchanged.

The assumption process requires lender approval and ensures that the new borrower meets the eligibility criteria set by the Department of VA.

Who Can Assume A VA Loan?

Assuming a VA loan is available to a specific group of individuals who meet certain eligibility criteria.

The following parties are generally eligible to assume a VA loan:

  1. Qualified Veterans: Veterans who have obtained a VA loan can allow another qualified individual to assume their loan.
  2. Active Duty Service Members: Active duty military personnel who currently have a VA loan can also permit someone else to assume their loan.
  3. Surviving Spouses: The widow or widower of a deceased veteran can assume a VA loan under certain circumstances.
  4. Eligible Buyers: Non-military individuals who are not veterans may be eligible to assume a VA loan if they meet requirements set by the VA, such as income and credit qualifications.

Even though VA loans are assumable, the process requires lender approval and adherence to VA guidelines.

Assume A VA Loan : Requirements

To assume a VA loan, certain requirements must be met. These requirements include:

  1. Lender Approval: The lender holding the existing VA loan must approve the assumption and agree to transfer the loan to the new borrower.
  2. VA Eligibility: The new borrower must meet the VA’s eligibility criteria. It may include being a qualified veteran, an active duty service member, a surviving spouse, or meeting requirements for non-military individuals.
  3. Assumption Fee: The VA may charge an assumption fee, which is typically a percentage of the loan amount. This fee can vary and is paid by the new borrower.
  4. Creditworthiness: The new borrower must demonstrate creditworthiness and meet the lender’s credit and income requirements.
  5. VA Loan Entitlement: The new borrower must have sufficient VA loan entitlement to assume the loan. If the original borrower has utilized their full entitlement, the new borrower will be required to have their own remaining entitlement to assume the loan.
  6. Assumption Agreement: Both the original borrower and the new borrower must sign an assumption agreement. It transfers the loan liability and responsibility to the new borrower.

How To Assume a VA Loan?

To assume a VA loan, you should first identify a property with an existing VA loan and confirm its assumability with the lender.

Verify your eligibility by meeting the VA’s criteria for assumption. Contact the lender and initiate the assumption process, completing the application and submitting required documentation.

If applicable, pay any necessary assumption fees. Await the lender’s decision, and if approved, both the original borrower and new borrower will sign an assumption agreement.

Finalize the paperwork and complete the loan assumption closing process, coordinating with a title company if necessary. Seek professional guidance throughout the process, as requirements and procedures may vary.

Where To Look For A VA Assumable Loan?

To find a VA assumable loan, you can start by exploring various sources:

  1. VA Approved Lenders: Contact VA approved lenders or mortgage brokers who specialize in VA loans. They can provide information on available assumable VA loans.
  2. Online Mortgage Marketplaces: Utilize online mortgage marketplaces that allow you to search for assumable VA loans. These platforms connect borrowers with lenders offering VA loan assumptions.
  3. Real Estate Listings: Look for real estate listings that explicitly mention assumable VA loans. Real estate websites and platforms often provide search filters to narrow down properties with assumable loans.
  4. Local Real Estate Agents: Consult with local real estate agents who have experience with VA loans. They may have knowledge of properties with assumable VA loans in your desired area.

Remember to verify the assumability of the VA loans with the lenders and conduct thorough due diligence before proceeding with any assumptions.

VA Loan Entitlement

After a VA loan assumption, the entitlement of the original borrower may be affected.

If the original borrower used their full entitlement for the assumed loan, their entitlement will remain tied to that loan until it is paid off or refinanced.

If the original borrower had remaining entitlement, it may be partially restored after the assumption. The extent of restoration depends on the remaining entitlement and the loan balance assumed by the new borrower.

Take guidance on entitlement after a VA loan assumption, it is advisable to consult with the Department of VA or a VA-approved lender. They can provide specific details and assistance based on your individual circumstances.

Liability Release After a VA Loan Assumption

After a VA loan assumption, the original borrower’s liability can be released under certain circumstances.

If the new borrower assuming the loan meets the eligibility and is approved by the lender and the Department of VA, they become responsible for the loan.

Once the assumption is completed and the lender grants the release of liability, the original borrower is relieved of their obligation for the loan.

It’s important to note that obtaining a release of liability requires the lender’s approval and adherence to the VA’s guidelines.

Consulting with the lender and understanding the specific requirements and procedures is crucial to successfully obtaining a release of liability after a VA loan assumption.

Benefits and Drawbacks of VA loan Assumption

Benefits of VA Loan Assumption:

  1. Lower Interest Rate: Assuming a VA loan allows the new borrower to benefit from the existing low interest rate associated with the loan. Thid can result in lower monthly mortgage payments compared to obtaining a new loan.
  2. No Down Payment Requirement: VA loan assumptions do not require a down payment. The new borrower can assume the loan without having to provide a substantial upfront payment.
  3. Streamlined Process: The assumption process for VA loans is typically more streamlined compared to obtaining a new loan. It involves fewer paperwork and quicker processing times, saving both time and effort.
  4. Preserve VA Loan Benefits: Assuming a VA loan enables the new borrower to preserve valuable VA loan benefits. It has no private mortgage insurance (PMI) requirement and flexible eligibility criteria.

Drawbacks of VA Loan Assumption:

  1. Limited Availability: Not all VA loans are assumable. The original loan must have an assumable feature, and the lender’s approval is required for the assumption to take place.
  2. Qualification Requirements: The new borrower must meet the eligibility criteria set by the VA and the lender. They need to demonstrate creditworthiness, income stability, and other qualifying factors.
  3. Transfer of Liability: While assuming a VA loan relieves the original borrower of their responsibility, it transfers the liability to the new borrower. The new borrower becomes responsible for the remaining mortgage payments and any associated risks.
  4. Entitlement Considerations: If the original borrower’s entitlement was fully utilized, the new borrower may need to have their own remaining entitlement.

It’s essential to weigh the benefits and drawbacks and consider individual circumstances before deciding to assume a VA loan.


Assuming a VA loan offers benefits such as lower interest rates, no down payment requirement, and a streamlined process.

However, eligibility requirements and potential limitations on entitlement should be carefully considered before proceeding with a VA loan assumption.

Frequently Asked Questions

1. What is a Assumable VA loans ?

A VA assumable loan is a type of mortgage loan that allows a new borrower to take over an existing VA loan from the original borrower.

2. Where To Look For A VA Assumable Loan?

You can find a VA Assumable loan through real estate agents, online market places, approved lenders and real estate listings.

3. Who can apply for Assumable VA loans?

Active duty service members, veterans, National Guard and Reserve members, and some surviving spouses are eligible to apply for VA loans.

Related: assume va loan, va loan assumable, are all va loans assumable, can a va loan be assumed, is a va loan assumable, Houzeo reviews.


Save $20

On Silver & up plans

Use Coupon Code:

Need help? Call us on
(844) 448-0110