If you’re a veteran thinking about selling your home, you have an option many sellers can’t offer: allowing a buyer to assume your VA loan. In today’s higher interest rate market, this can be a powerful selling point that attracts more buyers and helps your home sell faster.
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What Is a VA Loan Assumption?
A VA loan assumption is when a buyer takes over (or “assumes”) your existing VA loan—including its interest rate, balance, and remaining term.
• If you locked in a low rate years ago, that rate can transfer to the new buyer.
• This can save them hundreds per month compared to current rates.
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Who Can Assume Your VA Loan?
• Veterans and active-duty service members who qualify for VA loan benefits.
• Non-veterans can also assume the loan—but your VA entitlement may remain tied to the property until the loan is paid off, unless the buyer is a qualified veteran who substitutes their own entitlement.
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The Benefits to You as a Seller
• Market Advantage – A low-rate assumable VA loan is a strong selling feature.
• Potential for a Higher Sales Price – Buyers may be willing to pay more for the benefit of your lower rate.
• Faster Sale – Standing out from competing homes can shorten time on market.
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The VA Loan Assumption Process
1. Check with Your Lender – Confirm if your loan is assumable and request their guidelines.
2. Prequalify the Buyer – The buyer must meet the lender’s credit, income, and VA eligibility (if applicable) requirements.
3. Loan Assumption Approval – The lender processes the application and issues approval, usually in 30–60 days.
4. Closing – Similar to a regular sale, but with documents specific to the assumption.
5. Entitlement Release (If Applicable) – If the buyer is VA-eligible, request an entitlement substitution so your VA benefit is fully restored.
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Important Considerations
• Equity Gap – If your loan balance is less than the sales price, the buyer must pay the difference in cash or get secondary financing.
• Entitlement Tied Up – Selling to a non-veteran without paying off the loan means part of your VA benefit remains tied to that home.
• Lender Fees – Assumption fees are capped, but factor them into your negotiations.
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Bottom Line:
If you’re a veteran with a low-rate VA loan, offering it as assumable can give you a competitive edge in the market. It’s a unique benefit that could put more money in your pocket and help your home sell faster—especially when interest rates are high.

If you’d like to discuss how a VA loan assumption could work for your sale, I’m a veteran and licensed broker who’s helped many service members maximize this benefit. Let’s talk strategy.