How to find VA assumable loans?

Question

Just found out that assumable loans are a thing for VA loans. My next military assignment is to Del Rio TX and I'd like to get take advantage of the assumable loan.

But despite it being a small town with a proportionally large military presence, I'm not seeing any mention of assumable loans on listings. Is this something I have to inquire for each listing agent?

Justin VanHouten · Answer

If a veteran with eligibility assumes a VA loan it can be done so it doesn't impact the selling veteran's entitlement for future use. The risks you described are mostly applicable to cases where non-veterans assume VA loans--this will impact entitlement for future use of the selling veteran.

Jake Andronico · Answer

@Teho Kim

Zillow tip:

You can key word search for this. It will show up when a word you search for is in the listing description either in the Public and/or Extended remarks.

Private remarks (at least in our MLS) can only be viewed by real estate agents, so I have a search set up in our MLS for the Private remarks as well.

This way you can search all of the listings in a given area with the key word of your choice.

Hope this helps and good luck!!

Ran Iarovich · Answer

I would first ask the listing agent if they allow VA loans in the first place. Some homes don't. Then, contact an independent buyers agent and ask them for their recommendations on mortgage brokers that can find you the best assumable loan. Hope this helps!

Ryan Thomson · Answer

Good find, and Del Rio is actually a solid market for this because of Laughlin. Plenty of VA loans originated 2020-2022 in that area.

A few ways to find them:

**MLS keyword search:** The Zillow tip works for consumer sites, but get an agent to run the same search in the actual MLS, specifically in "public remarks" AND "private remarks." Agents often note assumable loans in private remarks where buyers can't see it. Worth having an agent with MLS access run that for you.

**AssumeList- will list the properties with assumable mortgages.

**Door-knock the timeline:** Any home sold in Del Rio between Jan 2020 and April 2022 likely has a sub-3.5% VA loan on it. You can search sold records in that date range on Zillow or Redfin, then cross-reference with current listings. It's manual but it works.

**Off-market:** Talk to VA-familiar agents in Del Rio and ask specifically who's been calling with listings that have low rates. VA assumptions are still niche enough that local agents will remember them.

On process: once you find the right deal, assume 45-90 days to close. The servicer runs a full credit/income underwrite. The VA itself also needs to approve the entitlement substitution (if you're a vet assuming from a vet, you can restore their entitlement at closing, which is a much easier seller conversation). Bring patience.

One more thing: even if you don't have your VA entitlement to substitute for the seller's, plenty of sellers will still do it. The rate is the value proposition. A seller with a 2.5% loan is going to get higher offers because buyers can afford more at that payment. That's a seller incentive to cooperate on the entitlement question.

What's your timeline for the assignment? Happy to help think through the search.

Sudhanshu Singha · Answer

@Teho Kim

There is a startup I read about recently. The company name is roam. They have a lot of listings with assumable mortgages but right now it’s geographically limited.

Sergio A. Chucaralao · Answer

The service member may regain their VA loan entitlement, which can be used for a future home purchase. However, they may need to meet certain conditions and repay any remaining amount of the loan or use their remaining entitlement. Allowing someone to assume the VA loan may impact the service member's ability to secure a new VA loan until the assumed loan is paid off or released through refinancing. This can potentially limit their options for future home purchases.It's important for service members to consult with their lender and the VA (U.S. Department of Veterans Affairs) to fully understand the implications and requirements of allowing someone to assume their VA loan. Additionally, they may want to seek legal or financial advice to ensure they make the best decision for their specific circumstances.

If after all this if you still looking to take advantage of such opportunity, I would verbalize in your new duty station that you invest in real-estate and that are looking to take over a loan. I would  go after assumable loans but not VA loans because if someone is letting you assume thier VA loan is probably because they don't know the disservice they are doing to thier future. Best of luck!

Eliott Elias · Answer

Why would you want to put a loan in your name? Look into subject to.

How to find VA assumable loans?

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