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What is a VA assumable loan?
Dated: September 23 2023
If you're in the market for a home loan, you may have heard of VA assumable loans. These loans are a unique option for veterans and their families, as they allow the buyer to take over the seller's existing VA loan. Yes, you can assume a VA loan at 3% (or whatever the low rate) and not pay today's much higher rates. There is still a VA funding fee--but it is greatly reduced. And yes, Coast Guard military members qualify to assume these loans as well. (Semper Paratus!)
So, what exactly does assumable mean? Essentially, it means that the buyer takes over the seller's mortgage and assumes responsibility for the remaining balance. This can be a great option for buyers, as they may be able to secure a lower interest rate than what is currently available on the market.
One of the biggest benefits of VA assumable loans is that they are often easier to qualify for than traditional loans. This is because the buyer does not have to go through the entire loan application process, as the seller's existing loan has already been approved. Additionally, there are no down payment requirements on VA assumable loans, which can be a huge advantage for buyers who may not have a large sum of money saved up.
It's important to note that not all VA loans are assumable, so it's important to check with the lender. If you are working with me, I'll always reach out to the listing agent and/or lender to double-check that you can assume the loan.
Overall, VA assumable loans can be a great option for veterans and their families who are looking to purchase a home. With their ease of qualification and lack of down payment requirements, they may be the perfect choice for those who are ready to take the next step in their home ownership journey.
After a career in the Coast Guard, Tom Walsh decided to settle in Calvert County, right next to the Chesapeake Bay! Not only does Calvert County offer easy access to the water, it is close to all the....