VA loans can be assumed by non-veterans

[Anna Strausbaugh]

I just learned this today, VA loans can be assumed by non-military buyers! This is exciting news to me and I'm surprised I hadn't heard it before since my husband is a veteran and we've purchased several homes VA as well as clients of mine that I have helped. I knew VA loans were assumable, but I had always heard it was only by another person who was VA eligible. I even had a lender tell me today that isn't true, but after more research and finding a lender who does a TON of VA loans and is super knowledgeable on the subject, I learned it is possible! The catch is that the veteran can't then use their VA loan again until that house is sold or refinanced (so basically you have to go conventional in the future, at least for a while). That's only if it's a non-veteran assuming it. If it's a Veteran assuming the loan then that doesn't apply.

Our market is changing and we need to find new ways to make deals work. Assumable loans haven't been talked about much in recent years because interest rates were so low there was no point in going through the process. But now if you can find a property with an assumable VA (or FHA) loan then you can also assume their interest rate. I started looking into this because my husband and I are selling our primary residence and we have a VA loan on it and I have been thinking of more ways to attract buyers to our property. We tried offering seller financing, money toward buying down someones rate, etc. But we have a 2.25% interest rate on this house that would cost a lot to try to buy down to that rate in today's market.

Just something to think about as you are looking at properties, maybe ask the seller or listing agent if it is possibly a VA loan and how you might be able to make a deal if they have a great rate already. Good luck!