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Disclaimer: Beginning January 1, 2020, the VA funding fee will be changing to a range of 1.4% – 3.6% based on factors like your down payment or equity amount, your service status and whether this is a first or subsequent use of a VA loan.

VA Loans Q&A Google Hangout - Quicken Loans Zing Blog

Have you ever wondered what an assumable mortgage is? Maybe a better question is whether you’ve ever heard of an assumable mortgage. Either way, I’m sure you’ve heard that old saying about assuming things; the one that says, “When you assume something, you…” well, you know what it says. Did you ever assume that the saying about assumptions applied to assumable mortgages? I hope not.

Assumable Mortgage

Assuming a mortgage doesn’t have anything to do with that old saying about assumptions. All it means is that someone assumes, or takes over, someone else’s mortgage.

On our VA Loans Q&A with the Department of Veterans Affairs, Military.com and several other organizations, someone asked this two-part question: What is an assumable mortgage, and, if the veteran doesn’t use his or her VA loan benefit, can his or her children use the VA loan benefit through an assumable mortgage?

VA Loan Assumption

Anyone can assume a VA mortgage – as long as their income and credit qualify – but children of veterans can’t get VA loans themselves (unless, of course, they join the military as well). You have to be a current service member, veteran or surviving spouse of a veteran to qualify for a VA loan.

Here are a few of the main requirements for assuming a VA loan:

  • If the person assuming the loan isn’t a veteran, then the veteran will lose their remaining entitlement benefits because the VA benefit stays with the mortgage, not the individual.
  • There’s also a funding fee that must be paid: 0.5% of the existing principal balance. Either the original owner or the new mortgage holder can pay this fee.
  • Once the assumer gets approved for the loan and the county receives the new deed, the current owner is released from all liability for the mortgage.

In the Q&A, Terry Howell of Military.com also noted that both the Department of Veterans Affairs and the lender have to agree to the loan assumption.

For more info on assumable VA mortgages, check out the VA Q&A video below!

Do you have other questions about VA loans, assuming loans or assuming things in general (pretty sure we already covered that last part)? Contact a Home Loan Expert today!



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This Post Has 156 Comments

  1. I am a 100% service connected disabled vet And I don’t pay taxes on the house. If my daughter assumes my loan does she have start paying the taxes.

    1. Hi Wallace:

      If she assumes your loan and takes title to the house, it becomes her property. At that point, it’s no longer taxed as if you were in the house, but it’s her property now, so she would pay the taxes on it and can only claim the exemptions that she qualifies for. However, if she’s unsure on the tax status, I would speak with a tax advisor. Thank you for your service!

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