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Are VA Loans Assumable?

Miranda Crace4-minute read
UPDATED: January 06, 2023

There are various types of mortgages for homeowners to choose from to finance their house. Depending on the benefits you’re looking for as a borrower, an assumable mortgage might be right for you.

If you’re on the hunt for an assumable loan with great benefits for the borrower, U.S. Department of Veterans Affairs (VA) loans are assumable – sometimes even for nonveteran borrowers. Let’s take a closer look at how a VA loan assumption could impact your home buying experience.

What Is An Assumable VA Loan?

Most home buyers will apply for a new mortgage to help finance their purchase. However, you can also consider an assumable mortgage. An assumable mortgage is the lending process where a home buyer can purchase a home by taking over the seller's mortgage rather than getting a new one.

Not all mortgages are assumable. However, many government loans are assumable including VA home loans. This means that a borrower can take over the terms of an existing VA loan, potentially even if they are not eligible to take out a VA loan for themselves.

VA loan assumptions transfer the previous borrower’s outstanding loan balance, interest rate, repayment term and monthly mortgage payment to the new borrower.

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How To Assume A VA Loan

To assume a VA loan as a home buyer, if you are an eligible VA borrower, you can use your own eligibility and entitlement to replace the seller’s eligibility.

You’re probably wondering, “Can a non-veteran assume a VA loan?” Yes, non-veterans and service members can also assume a VA loan in some cases.

If you aren’t a qualified veteran or service member, you’ll have to qualify with a lender as you would with any other new mortgage. The lender and the VA will decide to approve or deny your application. If you are approved, you will need to agree to the assumption including the original terms and conditions and pay the VA funding fee.

Requirements To Assume A VA Loan

The buyer will need to meet the requirements set by their specific lender. However, some of the common requirements include:

  • There will be an agreement to obtain all of the original mortgage terms, outstanding balance and obligations.
  • You must meet the minimum credit score and income requirements. The minimum credit score for Rocket Mortgage® is 580.
  • You may have to make a down payment, if required by your lender.
  • Pay the funding fee, which is 0.5% of the total loan amount.
  • The home must be your primary residence.

Release Of Liability On A VA Loan

Before closing on an assumable VA loan, the seller will need to obtain their release of liability from their lender. This document protects the previous borrower from any negative credit impacts or financial risk if the new borrower misses payments or fails to meet the original terms of the loan.

How To Find Assumable VA Mortgages

Not all lenders can or will offer VA loan assumption. Some lenders may need approval from the VA loan office, and this can be a lengthy process. However, here are some places to consider when looking for an assumable VA loan:

VA Entitlement After An Assumption

If you are the seller of an assumable mortgage, you must take a few extra steps to ensure your future financial protection and entitlement.

If the new borrower assuming your loan is a veteran with sufficient VA loan entitlement, the seller can ask them to substitute their entitlement for yours on that mortgage. Otherwise, your entitlement used to purchase the home will remain tied up in the property until the loan is fully repaid. That means if the new borrower is a non-veteran or service member, the remaining VA entitlement of the original VA borrower will not be reclaimed. In this case, the seller may not be able to fully take advantage of VA loan benefits in the future for some time.

Pros And Cons Of VA Loan Assumption

VA loans come with many benefits in addition to being assumable. Here are some of the benefits and disadvantages to consider.


  • You don’t have to be an active-duty military service member, veteran or surviving spouse to qualify.
  • You can potentially save on closing costs.
  • VA home loans typically have lower interest rates.
  • If another veteran assumes a VA loan, the seller can regain their full VA benefits.
  • Funding fee of 0.5% for a VA assumption may be lower than the regular funding fee amount for other VA home loans.


  • Some lenders don’t have authority to help buyers assume VA loans.
  • The new borrower will still need to meet the lender’s credit and income requirements.
  • As a home seller, there’s potential to put your VA entitlement at risk.
  • The process of assuming a VA loan can be lengthy in some cases.

The Bottom Line

Instead of buying a home and applying for a new mortgage to finance the purchase, a new homeowner can sometimes assume the previous owner’s mortgage.

Assuming a VA mortgage loan can allow new borrowers to qualify for a lower interest rate, especially if it’s a locked-in rate and lower than today’s rates. Although the new borrower is required to pay the funding fee, it can save thousands of dollars during the closing process.

Just remember to obtain your release of liability from your lender as the seller so you can protect yourself from any potential and future financial harm.

Are you eligible for a VA loan? Start your online application today with Rocket Mortgage!

Ready to get approved?

Rocket Mortgage® lets you do it all online.

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Miranda Crace

Miranda Crace is a Senior Section Editor for the Rocket Companies, bringing a wealth of knowledge about mortgages, personal finance, real estate, and personal loans for over 10 years.