Mortgage Navigator • VA Home Loans

VA Loan Assumptions

VA loans can be assumable, which can be extremely valuable when the existing interest rate is below current market rates.

Build My Mortgage Game Plan Mortgage Navigator

The buyer is underwritten

For a credit-qualifying assumption, the holder/servicer or VA evaluates the assuming borrower's creditworthiness using substantially the same underwriting information required for a VA purchase transaction.

Funding fee

The current VA funding fee for an assumption is 0.5% unless the assumer is exempt or another stated exception applies.

Assumption processing fee

Current VA guidance permits the holder/servicer to charge an assumption processing fee up to the VA-prescribed maximum, with other allowed charges limited by VA rules.

Seller entitlement: an assumption can affect whether the original Veteran's entitlement remains tied to the loan. Release of liability and substitution/restoration of entitlement should be addressed before closing.

Official VA baseline

VA Home Loans · VA Pamphlet 26-7 Lender's Handbook

VA sets the guaranty program rules, while private lenders underwrite and may impose overlays that are stricter than VA's baseline.