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A 3% assumable VA loan can be a game-changer in today’s high-interest mortgage environment. With rising home prices and volatile rates, locking in a low-interest VA loan—especially on a high-value property like a $750,000 home—can offer significant financial advantages. This guide breaks down exactly how to find, qualify for, and assume one of these rare loans.
What Is an Assumable VA Loan?
An assumable VA loan allows a homebuyer to take over (assume) the seller’s existing mortgage, including its low interest rate, balance, and repayment schedule. VA loans, backed by the Department of Veterans Affairs, are primarily designed for active-duty service members, veterans, and eligible spouses.
Notably, not all VA loans are assumable, and the assumption process requires approval from the lender and VA guidelines to be met.
Why it matters: Assumable VA loans offer an opportunity to bypass today’s 6–7% mortgage rates in favor of historic 3% rates—potentially saving you thousands annually.
Benefits of Assuming a 3% VA Loan on a $750K Property
- Massive Interest Savings: On a $750,000 loan, a 3% rate could save over $1,500/month compared to a 7% loan.
- Lower Monthly Payments: More affordability for high-cost homes.
- No Need to Originate a New Loan: Cuts down on processing time and origination fees.
- Potential for Faster Closings: Fewer moving parts compared to a new loan origination.
Step-by-Step: How to Acquire an Assumable VA Loan
1. Understand VA Loan Assumption Requirements
To assume a VA loan, you must meet specific eligibility criteria, including:
- Acceptable credit history and income verification
- Lender and VA approval
- Agreement to terms of the original loan
Note: You do not need to be a veteran to assume a VA loan.
2. Find a Seller with a 3% Assumable VA Loan
Look for listings or agents advertising assumable loans. Ask about:
- Remaining balance
- Interest rate
- Monthly payment schedule
Use platforms like Zillow, Realtor.com, or YourLocalVAHomeFinder.com to filter for assumable VA loans.
3. Negotiate the Assumption and Purchase Price
The seller may have significant equity. You’ll need to cover the difference between the loan balance and the purchase price—in cash or via a second loan.
Example:
- Purchase price: $750,000
- Assumable loan balance: $620,000
- Buyer must pay: $130,000 (cash or secondary financing)
4. Apply for Loan Assumption with the Lender
This includes:
- Credit and financial review
- Assumption application (fee may apply)
- Await lender and VA approval
5. Close the Deal
Once approved, proceed to closing like a traditional real estate transaction. Ensure legal documents transfer the loan obligations.
VA Loan Assumption: Key Considerations
| Factor | Details |
| Eligibility | Must meet lender’s credit and income criteria |
| Funding Fee | May apply (0.5% of loan amount) |
| Timeline | 30–60 days depending on lender responsiveness |
| Entitlement | If buyer is non-VA, seller’s VA entitlement may remain tied up |
FAQs About Assuming a VA Loan
Can anyone assume a VA loan?
Yes, with lender and VA approval. You do not have to be a veteran.
Is the interest rate preserved?
Yes, the original interest rate and terms remain unchanged.
Do I have to pay VA funding fees when assuming?
Yes, but it’s reduced—typically around 0.5% of the loan balance.
Will the seller regain their VA entitlement?
Only if the buyer is a VA-eligible borrower who substitutes their entitlement.
Read Next
- How to Use a DSCR Loan for Cash-Out Refinancing on Rental Properties
- The Benefits of Refinancing Luxury Properties During Low-Interest Periods
Final Thoughts
In today’s high-rate housing market, assuming a 3% VA loan on a $750K property isn’t just savvy—it could mean saving tens of thousands over the life of your loan. Whether you’re a veteran or a civilian, tapping into assumable loan opportunities can be a powerful wealth-building strategy.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
