Hunting down VA Loan assumption??

Question

Hey everyone! Finally took the plunge and decided to post on here.  BLUF: Does anyone have any good tricks to find properties that have VA/assumable loans?  I've tried searching "loan" "assumption" or "VA" on Zillow with mild success, and my realtor is finding like 1 property a week which doesn't seem like nearly enough based on living in the DC area.

Also, I currently have 2 VA loans on other properties, and have determined for Fairfax county I have about $400k of eligibility remaining. Am I able to assume a $600k VA loan if I put $40k down? (and obviously pay the appreciation)

Ryan Thomson · Answer

The DC market is tight, but the "1-2 properties" situation is a search problem, not an inventory problem. There are way more assumables out there than what shows up in standard MLS searches.

How I find them: my VA runs searches across the MLS specifically filtering for FHA and VA loan types. Pulls 2-3 properties per week in my market. You can also use Roam (withroam.com) which aggregates assumable inventory across the country. For DC/Northern Virginia, there's actually solid inventory because of the military population, you just need the right search criteria.

On the "need to overpay" point, I'd push back on that. I closed 7 assumptions in a single quarter, and while it's true that sellers with great rates hold value, most deals I see aren't structured as overpaying. It's structured as the buyer understanding why the assumable rate is worth a premium. That's a different framing. If I can get a buyer into a $400K loan at 3% vs 6.14%, the payment savings alone are $746/month. That's real value, and sellers are pricing to capture some of it. It's not overpaying, it's paying for rate value. The buyer still comes out way ahead.

On your eligibility question: yes, you can assume a $600K VA loan with your remaining entitlement, but the math is specific to your county and remaining entitlement. The key thing here is the seller loses their VA entitlement tied to that loan until it's paid off or refinanced, unless a qualified veteran assumes it and does a substitution of entitlement. That restores the seller's entitlement at closing. Worth flagging to any veteran seller, it changes the conversation.

The real bottleneck isn't finding properties, it's timeline. Servicers run at 45-90 days. If you're competing with conventional buyers, you need a motivated seller or a listing that's been sitting. Both exist, you just have to work through more deals to find the right match.

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Russell Brazil · Answer

At a given time there is 1, sometimes 2 properties for sale in the DC area that has an assumable VA loan.

In order to buy one, youll need several factors to come into play.

1) The property will need to be overpriced, thus sitting on the market without offers. You will not be able to assume a loan on a well priced property as that will have multiple offers and sellers will not want to deal with the assumption due to the timeline.

2) You're going to need to willingly overpay for the property.

Ive done 3 assumptions this year, and that was the case on all 3.

Sean Hudgins · Answer

With 700 on the market, there are probably more than three that are assumable loans; they are just not being advertised as such. If, in your search, you come across a home you want to live in, but it is not advertised as assumable, you may need to make some calls and help educate the listing agent on the assumption process if it is an assumable loan type. You may have to be the one doing the leg work.

As said previously, even if the loan is assumable, most sellers who are priced right for the market and are getting offers within four weeks of being on the market will not be willing to go through a couple of extra steps for an assumption. If you are willing to pay extra that might get it done or if the home has been on the market for some time (which probably means it's overpriced anyway). If you have access to a dialer like RED-X, you can target cold-calling people who have little equity in the properties or bought in the last couple of years.

Vijay Friedman · Answer

@Chris MartinezVA assumptions can be a good strategy if the seller’s loan terms are strong, but availability can be very limited and the process can be slow. Since you already have VA loans and remaining entitlement, it may also be worth comparing this against investor financing options depending on whether the next property will be owner-occupied, rental, or house hack. The occupancy and exit strategy will really drive the best route here.

Jonathan W. · Answer

Curious how you fared with this...these are unfortunately often unrealistic in practice in my experience. Most lenders will do everything possible to make assumptions as difficult as they can (they don't want you to assume that 3% rate when they can sell you at 6% rate). Real world examples include refusing any electronic communication with the title company and requiring every document to be sent via USPS, which drags out the timeline significantly.

So in reality, you need two things: A very strong cash position to cover the gap between the note balance and the purchase price. A seller who is willing to wait 3 to 6 months to close.On your entitlement question, yes, you should generally be able to assume the $600k VA loan with $40k down, assuming that bridges the gap needed to satisfy your remaining entitlement and any equity/appreciation above the assumed balance. Also, since you already have two VA loans, you’re basically doing entitlement stacking. I actually wrote a detailed breakdown on how this works, including multiple simultaneous VA loans and remaining entitlement math. Might be useful if you’re pressure testing your numbers: Entitlement Stacking: How to Hold Multiple VA Loans Simultaneouslyv/r, Jon

Joseph Coleman · Answer

@Chris Martinez any updates on your VA loan search?

Joseph Coleman · Answer

@Chris MartinezI have heard that local title companies may be able to get you a list of properties with VA and FHA loans. I have heard this is "public information" and there are a lot of companies that use loan information to try and market scams and various services to new home buyers. So I would think there is a way to get a list. You may also want to target loans within a certain age so you can target those with a reasonable assumption gap. For example loans from 2019 - 2021 could be more likely to have lower principal that you will need to pay off and a lower interest rate than loans originated in 2022 - 2023. If you can get a list, you will also probably want to cross reference this with homes active on the market. Not all agents know that they should select the loan type when listing on the MLS (it is an optional field). It also takes longer to close when you assume the loan, so it's usually best forsellers who are willing to wait a little longer to close.

https://assumptionsolutions.com/ is a company that could help as well  for understanding how the process works.

Eliott Elias · Answer

Most realtors do not market the loan as assumable because 1. They do not know or 2. They do not think it will be desirable for buyers.

What you should be looking for are subject to opportunities. You can take over as many loans as you want without reaching a threshold.

Hunting down VA Loan assumption??

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