VA Loan Assumption

New to Real Estate · Sacramento, CA · Member since 2025 · 10 posts · 15 votes

Hi, has anyone had any luck buying a rental property through assuming a VA Loan? I've read it has to be your primary residence, and I've also read investors can assume the loan with a lengthy loan application process for rental purposes even if they are not a veteran. Conflicting information.

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Mike DmuchoskiPro Member

Realtor · Mesa, AZ · Member since 2014 · 158 posts · 56 votes

7mo

Hi Andy. VA loans can be assumed as a primary, secondary, or investment property. And you do not have to be a veteran. With the right team, they take on average 90 days to close.

I've sold a few dozen of these to my investor clients. If you want an "easy" button, look elsewhere, but I believe they are the most powerful instruments available in today's market (although I'm biased)...

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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
7mo
Quote from @Andy Selby:

Hi, has anyone had any luck buying a rental property through assuming a VA Loan? I've read it has to be your primary residence, and I've also read investors can assume the loan with a lengthy loan application process for rental purposes even if they are not a veteran. Conflicting information.
He Andy, welcome to BP! From what I've seen and experienced, VA loan assumptions can be a bit tricky—yes, they're primarily designed for the veteran to transfer to another eligible borrower, and most of the time the property does need to be a primary residence for the person assuming the loan. That said, there are cases where investors can assume a VA loan even if they're not a veteran, but it usually involves a longer approval process with the lender, credit checks, and sometimes VA approval, and not all lenders allow it for investment purposes. It's definitely not as straightforward as a typical purchase or traditional financing, so a lot of investors weigh whether the time and paperwork are worth it versus just getting conventional financing. Talking to a lender who has experience with VA assumptions is key because they can clarify the rules for your specific situation, and you'll get a realistic picture of whether it's feasible for a rental. Happy to connect and answer any questions you have!

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Andy Selby
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New to Real Estate · Sacramento, CA · Member since 2025 · 10 posts · 15 votes
7mo
Thanks, Jimmy. Yes, some more research is needed, but I wondered why I haven’t seen or heard of this process more.
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Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 377 votes
7mo
You're hitting the most common confusion point with VA loans. The short answer: yes, investors can assume a VA loan for a rental property, but it's not straightforward and it's not common. The VA technically won't back a rental assumption, but private lenders will do it through an assumption process that usually involves a full underwriting as if it's a new loan.
Here's what happens in practice: the original VA borrower gets the cheap rate on their primary residence. When they want to sell to an investor, the investor can assume the loan directly (if the lender allows it) without VA approval, but the lender will typically run you through underwriting and may adjust the rate or terms. You don't get the VA benefit anymore -- you're just taking over their liability and their interest rate. Some lenders say no to investor assumptions entirely, others charge a fee.
The actual play here is different: find a property where a vet owns a rental and is willing to let you assume their loan because they want out. Those are rare deals, but they exist. Most of the time you're better off financing the deal the traditional way and structuring it on better terms anyway.
Are you looking to assume a specific loan that's already out there, or are you trying to understand whether VA loan assumptions should be part of your investment strategy?
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Andy Selby
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New to Real Estate · Sacramento, CA · Member since 2025 · 10 posts · 15 votes
7mo
Hi Bo, thanks for your response. Very helpful. I don’t have any specific loans right now. I was just checking with the community if anyone has had any success. I’m sure if it was straightforward more investors would be jumping on board.
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Mike DmuchoskiPro Member
Realtor · Mesa, AZ · Member since 2014 · 158 posts · 56 votes
7mo
Hi Andy. VA loans can be assumed as a primary, secondary, or investment property. And you do not have to be a veteran. With the right team, they take on average 90 days to close.
I've sold a few dozen of these to my investor clients. If you want an "easy" button, look elsewhere, but I believe they are the most powerful instruments available in today's market (although I'm biased)...
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Garrett CrosbyPro Member
Real Estate Agent · Los Angeles, United States · Member since 2021 · 392 posts · 162 votes
5mo
Andy, Bo and Mike are both right and actually saying compatible things. Mike is talking about the mechanics — yes, it's technically possible and lenders will do it without you being a vet. Bo is talking about the reality — not all lenders allow it for investments, and the ones that do will still run full underwriting.
In California specifically — and Sacramento is a good example — the math can actually justify the complexity. A 2020-2022 VA loan at 2.5-3% on a Sacramento property is worth roughly $800-1,200/month in savings at today's rates depending on loan size. That's real money. The 90-day close and additional friction can be worth it if the rate differential is that large.
The key is finding the right seller — usually someone who originally bought primary and has since moved or needs to sell but doesn't want to or can't wait for a traditional sale. Work with an agent or lender who has done a few of these and knows which servicers are favorable to investment assumptions. Feel free to DM if you want to connect on the Sacramento angle specifically.
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Ryan ThomsonBusiness Member
Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
4mo
Andy, the mix-up makes sense. VA origination requires primary residence, but assumption is a separate process. When you assume an existing VA loan, you don't have to be a vet and there's no primary residence requirement on your end. Mike's right on that.
The real friction investors hit is the seller's entitlement. Their VA entitlement stays tied to that loan until it's paid off. So the vet seller can't use their VA benefit again on a new purchase while your name is on the note. Some sellers are fine with this, especially if they're not buying again, but a lot back out when they understand it. That's the more common reason these deals fall apart, not the loan mechanics themselves.
On the numbers: a $400K VA balance at 2.75% is $1,686/month. New conventional on the same balance today runs about $2,700+. On a rental, that's the difference between cash flowing and not, even in a market like Sacramento where margins are tight.
PennyMac and Mr. Cooper are more investor-assumption friendly than most servicers. If the loan is with one of the difficult ones, budget extra time.
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