How Veteran Sellers Turn a Low VA Rate Into Stronger Offers

Why a Low Rate Sells

Most buyers shop by monthly payment. Many Portland area homeowners locked in VA rates between 2% and 4% over the last several years, and compared to today's rates, the payment difference can be substantial. In some cases a buyer could save hundreds, or even over a thousand dollars a month, compared to a new mortgage.

In the higher priced parts of the metro, that lower payment can make your home stand out from similar homes nearby.

“Your mortgage could become one of the strongest selling points your home has.”

Your Buyer Pool Is Bigger Than You Think

Your VA loan isn't only assumable by other veterans. Any qualified buyer can assume it, whether or not they've served. That opens your buyer pool well beyond veterans and active duty buyers.

The buyer still has to qualify with the lender, with acceptable credit, income, debt to income ratio and full lender approval. It isn't a shortcut around underwriting.

The Entitlement Catch

When a non-veteran assumes your VA loan, your entitlement stays tied up in that property until the loan is paid off or refinanced. That can limit what you can use on your next VA purchase.

If the buyer is a veteran with their own entitlement, they can substitute theirs for yours, which releases your entitlement for future use. For veteran sellers, who the buyer is matters a great deal.

The Equity Gap

A buyer only assumes your remaining balance, not your sale price. If your home sells for $700,000 and your VA balance is $450,000, the buyer needs another $250,000 in cash or secondary financing.

Many Portland homeowners have built significant equity, so this is the conversation to have up front. For some homes the assumable loan really sets the listing apart. For others, it won't move the needle the way you'd hope.

Plan for the Timeline

VA assumptions are rarely quick, often running 45 to 90 days and sometimes longer depending on the lender. For the right buyer, the long term savings easily outweigh the extra time, but you need to plan around it, especially if you're selling on PCS orders.