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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!

 

 

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!

  2. What is the real closing cost of a VA Loan Assumption? I applied to assume a VA Loan $405K and the Lender has sent me a ton of paperwork with a closing cost of 13K+. Does this sound correct/right to anyone?

    1. Hi Raj:

      It’s hard for me to give you a definitive answer because lenders have different policies. That being said, part of that is the VA funding fee which is 0.5% of the loan amount in an assumption. There’s also likely an assumption fee charged by the lender and third party fees for things like title insurance and deed recording. You may also have to fund an escrow account and pay for a certain number of months of homeowners insurance. Assumptions can mean less fees, but there are still some costs.

  3. Since I’m a veteran, I could assume the loan and the seller would be free to get another VA loan but what if the property is not going to be my principal residence (as a traditional VA loan would require)? Thx for your advice. Very helpful article.

    1. In order to do any loan assumption, Quicken Loans requires that the property be your primary residence. In addition, because of the VA requirements you already alluded to, with a VA loan, the property would have to be your primary residence no matter who the lender is. I’m sorry. Have a good day! Thank you for your service!

    1. You can, but you should be aware he might fight that because he may not be able to get another VA loan while you have his old VA loan if his full entitlement has already been used. Also, the servicer of the loan (the entity you make the payments to) has to approve the assumption. I hope this helps!

  4. Does Quicken always require that the new buyer to out down a 10% payment to assume a VA assumable mortgage?
    If not what are the criteria for Quicken to waive this sizeable down payment?

    1. Hi John:

      There are no specific down payments for assumptions. I see you’re working with us already, so I’m going to have someone from our team reach out to go over your situation.

  5. My ex husband passed, and my minor son has expressed that he would like to keep the home. The ex kept it in the divorce but refinanced and had my name removed.
    We are going through probate. I have not remarried, and he was a vet. I have been making the mortgage payments to avoid foreclosure. Would I be able to assume his VA loan and keep the house for our son?

    1. Hi Gena:

      I would talk to an estate lawyer about the legal implications. As long as you or your son get the house, you can always keep making payments whether you’re actually physically able to assume the loan or not. Assumption does provide the advantage that you would be able to refinance down the line if you wanted, but it doesn’t have to happen right away. The reason I would talk to a lawyer is I’m not sure the legal implications if it gets left to your son alone, because he’s not able to take on contracts to make payments. But you should be able to keep making the payments if it gets left to one or both of you. Hope this helps!

  6. My Father is a veteran. He and my mother live in a retirement community, so they do not currently own a house. My wife and I want to buy a house, but my dad wants to be the primary on the mortgage loan, put me on the loan with him, then get a VA loan to buy our house. Afterwards, I will assume the mortgage from him. Is this doable?

    1. Hi Bill:

      You don’t have to be a veteran to assume a VA loan. You can assume the mortgage from your father after he purchases the home with a VA loan. However, there are a few things you need to be aware of. First, you’ll need the Department of Veterans Affairs and your mortgage lender to agree on the VA loan assumption. If they agree, your mortgage lender will need to make sure your income and credit qualifies based on VA standards. When your father uses a VA loan to buy the house, please note that he will lose his remaining entitlement benefits because the VA benefit will stay with the mortgage. This means he will no longer be able to purchase a home using a VA loan. Additionally, there will be an assumption fee of 0.5% of the existing principal loan balance that you or your father will need to pay when the loan is passed to you. Before you assume the loan, the existing loan payments must be current, or if past-due, must be paid at or before closing. One you get approved to assume the loan and the county receives the new deed with your name on it, your father will no longer be liable for the mortgage- that responsibility will fall to you. Of course, the best way to find out if this is doable is by speaking with a Home Loan Expert at (888) 980-6716. They’ll be able to give you the best information for your situation. I hope this helps!

  7. Hello, I am about to assume a Veteran’s VA mortgage with a very good rate comparing mine. What are the risks and things I should be caution about? Does the bank do all the legal transfers with the title company and deed update? Thank you

    1. Hi John:
      There are no great risks. You work with the lender or loan servicer to assume the mortgage. You’ll have to talk to the lender or servicer about whether they would set up the title and deed transfers or you would. It’s my suspicion that most lenders or servicers will help you set it up or at least be able to recommend someone because they’re still involved in the sale even if one isn’t being paid off. You might still choose to get an appraisal independently of the lender, so you know you’re not overpaying for the property by taking on the current loan. That would be the one risk to watch out for. Hope this helps!

  8. I am currently living in a home my sister owns and has a VA loan on, she got married and moved in with her husband. I have been paying the mortgage, well I transfer the money to her and she sends the money to the bank. Anyway, my question is regarding child support, I received child support but it is not court ordered, it is for my 3 year old door so it will clearly continue for 3+ years, I have copies of checks going back since her birth showing continued payments. Will this be allowed as income or does it have to be court ordered?

    1. Hi Janet:

      The policies may vary based on whoever the lender is that’s handling the loan. That said, since VA loans are handled by the government, there may not be much variation in policies. In the absence of a court order, one thing you may be able to do is provide evidence of your child’s date of birth and a copy of applicable state law which states the conditions under which the payment of child support is required. Hope this helps!

      Thanks,
      Kevin

  9. My Dad refinanced the Home he and my mom bought together after my mom passed. It looks like the loan is a va loan through freedom mortgage. I moved in with him in 2015 when his health started declining. In 2017, he spoke to the mortgage company about putting my name on the house and they told him to add my name to deed, since it couldn’t be added to mortgage. So we put deed in both of our names. He told me that when he died not to worry about losing the house just to keep making the payments. He passed away in December. I know that what he told me is not the correct way to handle the situation, but I am afraid that I will lose the house if the mortgage company discovers he has passed. I have children and we cannot be homeless. What do I do?

    1. Hi Crystal:

      There’s no need to fear telling the mortgage company. It will help them get the bills sent to the right person. You don’t have to assume the loan if you can’t credit qualify. The lender won’t care who’s making the payments as long as they are made. That being said, telling the lender will help because that way they know who you are. If you get your credit fixed up in the future, you can then go to them about properly assuming the loan. There are advantages to this in that you would have the option of refinancing down the line if you were on the loan and it made financial sense. I hope this helps and I’m very sorry for your loss.

      Thanks,
      Kevin Graham

    1. Hi Troy:

      Unfortunately, one of the VA rules is that you have to live in the home. One potential option might be to get a multi-unit property and live in one of the units while renting the others out. I’m going to suggest you speak with one of our home loan experts by calling (888) 980-6716. They would be able to go over all of your potential options.

      Thanks,
      Kevin Graham

  10. My father passed away last year, leaving a home with a VA mortgage. I have been paying the payment, and my brothers and sisters want me to assume the mortgage. Is it possible for me to assume the loan?

    1. Hi Shannon:

      You can assume the loan. You just have to go ahead and credit qualify with the servicer of the loan. The first step is to go ahead and call them.

      Thanks,
      Kevin

  11. My husband is a Veteran. We are thinking of buying a house and putting our son on the deed with us. I would just like to know what happens to the VA loan if my husband and I die?

    1. Hi Deanna:

      If he’s on the deed, he can assume the payments if you and your husband pass. He just has to tell the mortgage company so they can begin to work on the process of transferring the loan into his name if and when the time comes.

      Thanks,
      Kevin Graham

  12. I’ve had a offer to buy my house and assume my VA loan. If the buyer defaults after assuming the loan am I as the original loan applicant now responsible for any default on new buyer is my SS /Giv pension at risk

    1. Hi Bob:

      Once the assumption is fully completed, they assume any responsibility for the loan. If they default, you’re not responsible and it won’t affect your Social Security or any pension you have.

      Thanks,
      Kevin

  13. Can my ex-husband request a assumption without me knowing if the house is not his anymore since i was awarded the house, and can he take his name off or fore me to refinance since i did not get a time frame to do so .The house is in both of our name and was purchase with a AV loan.

    1. Hi Kim:

      Your ex-husband can’t force you to refinance if there’s no written timeframe. With that being said, he won’t be able to get another home with a VA loan until you either refinance or pay off the loan completely. Just getting his name off the loan won’t help with that. Hope this helps!

      Thanks,
      Kevin

  14. my ex husband use his VA Loan to purchase a house and both of us name is on the house. I was awarded the house and will be making the payment on the house. My ex husband is trying to buy a new home using is VA to do so , but he requested an assumption with the lender without me knowing can he do that? since the house is not his anymore and how does this work if i do the assumption to get his name off the house?

    1. You can assume the loan. However, if you’re not a veteran, he cannot get another VA loan until the loan is paid off. Usually the way this works is that in your divorce agreement, you and your former husband would negotiate a specific amount of time you have to refinance into another loan that’s not a VA loan in order to let him purchase another home with a VA loan. I don’t know why he would be requesting the assumption if it’s your house.

      Thanks,
      Kevin

  15. My husband is a vet and we are considering assuming a VA mortgage. Is it possible to do this if our children also help with the loan? We would all be living in the house and we would all be paying for it.

    1. Hi Charlene:

      When someone other than the spouse of a veteran is on the loan along with the veteran, it’s considered a VA joint loan. Although we don’t do these particular loans, your experience may vary depending on the policies of the lender whose loan you’d be assuming. It’s possible. Hope this helps!

      Thanks,
      Kevin Graham

  16. We have received Pre-Approval from Quicken for a home loan. When we asked for information if my father (Vet) could purchase the home and my wife and assume the loan we were told by the Quicken loan specialist VA loans aren’t assumable… This sorta makes us hesitant to move forward with Quicken as it was a basic question of assumption… Could you point us in the direction or our specialist to be able to answer a question like: How long must the Vet hold the loan prior to assumption?

    1. Hi Ronald:

      VA loans are assumable. The only thing that happens if your father is a veteran and you aren’t is that when you assume the loan, he gives up his VA entitlement to purchase another home through the VA loan. That may or may not be a concern. Also, if you were going to assume the loan, you wouldn’t be getting a loan, your father would and then you would assume it down the line under the current terms of the loan whether your father went with us or anyone else. I think that may be where the confusion lies. But I can tell you that VA loans are absolutely assumable as long as they are assumed through the lender that did the loan. I’m going to get this over to our client relations team to look into your experience and see if we can get this straightened out. Thanks for reaching out!

      Kevin Graham

  17. I purchased a home us my VA loan benefits last year. I have since moved out of the home. Is it possible to have a parent assume this loan so I can use my VA loan benefit to buy a new home in my current location?

    1. Hi Shawn:

      It depends on whether one of your parents is a veteran. If your original VA loan is assumed by a nonveteran, you lose your VA entitlement to buy another house using a VA loan in the future. If they are a veteran, you can do this. Your other option would be to sell it and pay off the original loan.

      Thanks,
      Kevin Graham

  18. I am trying to assume a VA loan. If I do, does the person lose their entitlement for another VA loan forever or just until I refinance the loan into my name?
    Thank you.

    1. Hi Tammy:

      Loan assumption is a complex topic with various guidelines, particularly for the VA. Every situation is slightly different. My advice would be to have the person call our servicing team at 800-863-4332, we have an assumption team that could help go over their situation and see exactly how it affects them.

      Thanks,
      Kevin Graham

      1. I tried to call and ask questions, the lady I spoke with said that VA loans are not assumable. So I got no where calling this number. Just letting people know to not waste their time calling.

        1. Hi Nicole:

          Every situation is different, and I don’t know your circumstances. I can tell you that it is possible to assume a VA loan. I don’t know who you talk to, but I’m going to get this over to our Client Relations team to get any confusion cleared up.

          Thanks,
          Kevin

        1. Hi Andrew:

          When you assume a VA loan, you have to assume it through the servicer/lender who is responsible for the original loan. There are conditions that have to be met, but we absolutely let people assume the loans we service if they qualify under VA. I’m going to pass this along to our client relations team so we can have someone to talk to you further about this.

          Thanks,
          Kevin Graham

  19. Hello,

    I am the dependent of a veteran. My husband and I recently purchased a home in Sep of 2015 but we are now wanting to move again to live closer to family. I understand the concept of assuming a VA loan but I don’t know of anyone that has done it and am unsure how it would work. If I have my dad purchase the home that my husband and I want and we then assume the loan once the transaction is complete what are the out of pocket costs that my husband and I would have to pay? For example, we had to pay closing costs on the home we sold and also on the home we purchased (our current primary residence) which between the two homes was somewhere in the neighborhood of $30K or more. We definitely cannot afford to do that again so quickly after having just purchased in late 2015. But if my dad purchased the home and there were no closing costs involved that would be doable. Will you tell me more about how this could work for us? Thanks!

    1. Hi Ruth:

      There are a few concerns to think about here. Your dad can let you assume the loan, but if he does so, he gives up his VA entitlement and can’t get a VA loan again. If you do decide to move forward with the assumption, it has to be approved by the lender or loan servicer as well as the VA. I would start with whoever the bill is sent to, the lender or servicer, in order to get that process rolling if you move forward. Finally, you also have to credit qualify.

      In terms of fees, those vary depending on who is handling the transaction, so I would talk to the lender or servicer. However, in general, there’s a small processing fee and the funding fee which is a percentage of the loan amount. This last charge is the VA’s replacement for mortgage insurance. There’s more information in section 7 of this document from the VA. I hope this helps!

      Thanks,
      Kevin Graham

  20. My active duty husband and I currently own a home that we bought with his VA entitlement. We are renting the house out now and our renter is a retired Air Force veteran. He would like to buy the house and we are open to selling. He would substitute his entitlement for ours. We know that our lender and the VA have to approve the assumption by our renter. We would like to ask for more than our current mortgage pay off amount. My understanding is that our renter would have to come up with the difference between the pay off amount and the selling price, in cash or take out a new mortgage? Is this correct? Also, are standard closing costs associated with a VA assumption ? We do not have a realtor (and don’t want one since we’ve already got a buyer) and are trying to figure out exactly how to go about this process. Thanks for any info someone could give.

    1. Hi Jessica:

      You’re right. He would have to come up with the difference in cash or with another loan if you charge more than you owe on the mortgage. That’s between the two of you. He would pay the VA funding fee in place of mortgage insurance. That’s standard. There’s also title insurance to think about. The lender will have their own fees as well, but that varies. They are part of the approval process, so you’re going to end up talking to them anyway and that would probably be your first step. I agree that there’s no need to involve a realtor. Anyway, I would start by talking to your lender.

      Thanks,
      Kevin Graham

  21. My wife and I own a home that is through the VA. We used her certificate to purchase. We are now going our separate ways and I would like to assume the loan using my VA certificate. How do I accomplish this. Thank you.

    1. Hi Mike:

      The assumption ultimately has to be approved by your lender or servicer. I would start by calling them. If you happen to have your loan with us, I would get started by calling one of our Home Loan Experts at (800) 863-4332. They’ll be able to walk you through the process. Thank you very much for your service!

      Thanks,
      Kevin Graham

  22. I am a surviving spouse of a veteran and considering selling my home which has VA financing through my late husband. What is the down side to me if I were to offer to my stepson for him to assume this VA loan (besides the fact that I put a good deal of money into remodeling the home since it was purchased a year ago)?

    1. Hi Debbie:

      The only downside is that you would lose your option to purchase a home through the VA in the future if your son assumes the loan.

      Thanks,
      Kevin Graham

  23. my daughter will eventually have to assume my v.a. mortgage upon my death, I know she would have to qualify, but does that mean that she will also have to pay all the fees that I was granted not to pay, such as zero down, no mortgage insurance, and since I am a disabled vet., they also waived the funding fee, so upon assumption, will these benefits be passed on to my daughter or will she have pay them?

    1. If she inherits the mortgage upon your death, she doesn’t have to credit qualify. After that, it’s a straight assumption so all the benefits that the current loan has would carryover.

  24. My husband of 25 years recently passed away in July 2016 I have contacted out mortgage company about assuming our VA loan and the mortgage company told me that they do not do assumable loans I was not on the original mortgage but since my husband has passed suddenly I need to assume the loan I am currently on disability and I would like to know what I should do to assume the VA loan and what the qualification are for doing so. If you can tell me what survivorship benefits widows have I would greatly appreciate it I don’t know which way to turn. Thanks for your help.

    1. Hi Teresa:

      In your case, as a surviving spouse you have the ability to assume the loan under Garn-St. Germain, a federal law. You can find more information here. I would bring that up with your lender.I’m sorry to hear about your husband’s passing. Hope this helps!

      Thanks,
      Kevin Graham

  25. Hello! My husband (active duty) and I (civilian) have a VA loan. My husband received orders to PCS (military move) and we are looking at loan assumption as a possibility. If we decide to do a VA loan assumption with another active duty family, will we be able to apply for another VA loan in the future? Does the mortgage have to be paid in full before we can do that? Thanks for your help!

    1. Hi Ashley:

      If another veteran assumes the loan, you’d be able to get another VA loan right away because your full entitlement is restored when it’s transferred to the other servicemember. It doesn’t have to be paid off.

      Thanks,
      Kevin Graham

  26. Hi,
    My ex-spouse is in the process of refinancing our house thru the VA. He would like for me and his children to assume the loan and live in the house in the event of his death. Would we need to qualify on our own or could we assume the va loan without qualifying?
    Thank you
    joann b

    1. Hi Joann:

      In the event of your husband’s death, you wouldn’t have to qualify. You could just assume the loan and keep making the payments.

      Thanks,
      Kevin Graham

  27. My HOA foreclosed for delinquent dues and assessments and acquired the unit at auction. I am now in my 90 day redemption period. The existing first and only loan is the original VA loan acquired at purchase. If the VA loan is only assumable by a qualified veteran, how then can the HOA take title subject to the existing VA loan at the end of the redemption period? Their reserves are only 4% funded and do not have $145,000 to pay off the VA loan, nor would it be prudent because the property value is “underwater”. What happens to the procedure at the end of the redemption period? The existing lender as yet has not elected to record a NOD and set a sale date. Does the HOA still have the right to evict me at the end of the redemption period if it cannot take title subject to the existing VA loan? Your input would be appreciated. I live in California.

    Thanks

    1. Hi Michael:

      I would consult a lawyer to look into some property issues as far as your rights in the local area as far as foreclosure. I do want to clear up a couple of misconceptions.

      First, anyone could assume a VA loan if you sold the property. The only stipulation is that if you sell to a nonveteran, you would lose the right to use a VA loan in the future.

      Second, if they bought it at auction, they aren’t using your VA loan. They’ve acquired their own financing. As far as your other questions and your legal rights, it would be best for you to consult an attorney. Good luck!

      Thanks,
      Kevin Graham

  28. I want to let my daughter buy my house and assume my va loan. I am a disabled veteran. Will I have closing costs at closing? Can I request additional from her through th va loan? I guess what I mean is can she assume it for more than what is owed by me? The house appraised at 26,000 more than I bought it for. What if the interest rate has gone down since I purchased the house, can she get the lower interest rate?

    1. Hi Sharon:

      Thank you for your service!

      If your daughter assumes your VA loan, she has to do so under the terms of the original loan. She can’t owe any more than what you bought it for. After she assumes the loan, she could choose to refinance at a lower rate at that point.

      Thanks,
      Kevin Graham

  29. If i get a va home loan and die down the road, can my children assume that loan, im divorced and id like to know before i buy a house under a va loan

  30. Looking into my mother’s taxes, I saw that the owner is listed as the VA admin. How is thisossible if she is not a veteran and what happens to the home if God forbid, she passes away? Please advise and thanks in advance!

    1. Hi Renee:

      I would be interested to know where you saw that. The VA Administration can’t be listed as the owner on the title. It is possible she could have a VA loan if she’s the surviving spouse of a veteran. However, even in the case where she’s paying off the mortgage, the VA doesn’t own the house. They just invest in the loan itself and insure it when it is sold to other investors.

      Thanks,
      Kevin Graham

  31. If a house has a VA mortgage on it and there is a beneficiary deed, can the beneficiary assume the loan without having to qualify?

    1. Hi Kendra:

      Whether or not you have to qualify may depend on the relationship you have to the person that gave you the property. I can tell you that if you have the ability to make the payments, the lender can’t really withhold their consent without good reason.

      Thanks,
      Kevin Graham

  32. I am purchasing a new home using my VA benefits (I am a veteran), I want to add a friend (a civilian) onto the deed after closing, by doing a “quick claim deed” can I do this? No, this person is not a spouse, fiancée, family member or significant other) However they have contributed to the purchase of the home and will be living and contributing to the home and all bills. We are business partners and found it economically better and a cost savings by living together. We both have A+ credit scores and no outstanding debt. Is their some clause that prevents me from adding this person to the deed after closing? If I am not able to add to the deed, am I able to WILL the house to them? or can this person assume the loan? they have excellent credit and no outstanding debt.

    1. I know you can will the house. The assumption wouldn’t be a problem because you wouldn’t have a use for your VA entitlement after you pass on. In terms of adding that person to the deed, it might be better to ask someone at the VA as this isn’t specifically related to the mortgage.

      Thanks,
      Kevin Graham

  33. My son is a veteran as am I and he is already preapproved for a VA loan. His mother passed away years ago while he served and moved back home after his discharge. I’ve remarried since and have moved, while he and his family live in my old home. He rents the property now, but would like to assume the loan. What is the process? Do I just contact my lender and see if they will approve the loan assumption…and if they do, then just contact the VA to substitute his entitlement for mine?

    Mike

    1. Hi Mike:

      Every lender’s assumption process is slightly different. The next step that I recommend is talking your lender and going over what they require. They’ll be able to walk you through the process.

      Thanks,
      Kevin Graham

  34. My cousin (a Veteran) is going to be attempting to assume my VA home loan and before he can he has agreed to pay off a second mortgage for some new windows. What documentation can I produce for him so he can borrow from his 401K to pay off the balance of the second mortgage and what document do I need to produce for him to prove he is going to attempt to assume the mortgage on the house.

    1. Hello, David. You can reach out to a home loan expert here! They’ll look through your specific situation and point you and your cousin in the right direction. Thanks, and best of luck to you!

  35. If my father (Veteran) passes away can I (civilian) assume his VA loan? Exactly the the way the loan is set up now? (ie; no mortgage ins, interest rate) He has a much better credit rating than I do and I wouldn’t be able to refinance on my own. Can I move in and start making the monthly payments on the existing VA loan? Thank you.

    1. Hi Kathleen:

      If you were able to assume the loan, it would be under the same terms he has now. However, you would have to qualify with your own credit and DTI in order to assume the loan, so you may not get the result you want. I’m going to have someone reach out to you to go over this.

      Thanks,
      Kevin

  36. My father passed away and has a VA loan on his home in Florida. I am the only child and the executor of his estate. I would like to keep the home and use it as a 2nd home rather than sell it as I come to Florida at least twice a year. Am I able to assume his VA mortgage for second home use as long as I qualify credit/income wise?

    1. Hi Lisa:

      I’m not sure how this works in cases of assumption, so I’m going to forward this to one of our Home Loan Experts that can give you more information.

      Thanks,
      Kevin Graham

  37. If my ex wife assumes my VA loan am I liable for the loan? I need to purchase a home and don’t know if the va loan that my ex assumes will still count against my credit. The way I read it I would be released from the loan liability but my VA benefit would still be attached to the house until paid off?

    1. Hi Zach:

      As soon as the assumption is complete, your ex-wife would be solely liable for the property. However, you won’t be able to get a new VA loan even if the house is paid off because VA rules only provide for restoration of the entitlement if another veteran assumes the loan. There’s more information on this page under “Restoration of Entitlement.” Hope this helps!

  38. My ex-husband (service member) and I (civilian) have a VA Mortgage in both of our names on a home. We have a great interest rate and have decided that I would keep the house and refinance. I read about some VA loans being assumable and wondered if its possible to have my father (retired air force vet) assume the mortgage with me to basically just replace my ex on the VA Mortgage so it would be in mine and my father’s name using his VA benefit to release my ex-husband so he can purchase a house on his own using his VA benefit and not being obligated to the current house mortgage? Who makes the determination if a VA loan is assumable, does the bank who our mortgage is currently through have any say? Thanks for any assistance you can give me!

    1. Hi Brandy:

      it’s ultimately up to your bank that currently holds the mortgage to answer these questions. What you want to do makes total sense, but banks have different policies regarding assumption and what’s necessary in order to qualify you and your father so that your ex-husband can keep his VA entitlement. I would start with your lender and go from there. Hope this helps!

      Thanks,
      Kevin Graham

  39. I have almost completed the assumption process with my lender (I’ve requested to assume my VA loan to have my ex-spouse removed from liability). I received a Closing Estimate at the beginning, but now they want me to sign a new estimate disclosure with an additional fee: “VA Pass Thru Fee” ($528). I can’t find any info on what this is for…it is legit? It’s on top of a $900 assumption fee from the lender.

    1. Hi Ashley:

      I know lenders may have different names for the fees that they charge, but I would be happy to have someone reach out and help you look into this. They’ll be in contact.

      Thanks,
      Kevin Graham

  40. My wife(civilian) and I (Veteran) are getting a divorce. She wants me to keep the house but doesn’t want to stay on the mortgage. Can I do a loan assumption on my current mortgage to get the house put under my name only? If so, would my interest rate change and how much does it cost?

    Thank you

    1. Hi Joshua:

      We can help you look into your options to refinance and have your wife removed from the loan. I can’t really say what the rate would be or how much it would cost because every situation is different and it’s very unique to the individual situation. That said, I’m going to have someone reach out to you about this.

      Thanks,
      Kevin Graham

  41. Our VA loan is in my husband’s name. We are in the middle of a divorce. The realtor said our property value is about 30K less than what we owe on it. Can I (civilian) assume that VA loan with my only current source of income being spousal support and child support? If it is possible, would he be able to purchase a another home using VA?

    1. Hi Jackie:

      I’m going to have someone reach out to you about this. Ultimately, whether you could qualify would depend on how much the support was and whether you could afford the mortgage and any other debts you have to pay. If you were to assume the mortgage, your husband couldn’t get another loan through the VA.

      Thanks,
      Kevin Graham

  42. My dad just bought raw land (gaming, camping)through a VA loan. Does the VA prohibit a person from building on the property?…and also , i s the VA allowed to foreclose on the property if my dad passes away?…How may we find out if this is an assumable loan….Thank you.

    1. Hi Lady:

      So I’m going to take this one at a time.

      We don’t do new construction loans, so I’m not equipped to answer that question. If he wills the property to someone, the lender will work with them so they can take over the payment. VA loans are assumable. If the property is transferred to a nonveteran, your father loses his VA entitlement to get another home loan. It also depends on the policies of the lender as to whether they will approve it.

      Kevin

    1. Hi Hugh:

      If someone assumes your loan, you will no longer be responsible for any payments or anything surrounding it once the assumption is complete.

      Thanks,
      Kevin Graham

  43. We are having another VA member assume are loan and i was wondering if when they assume it, if we lose our amount they assumed or will that amount go back to our Original VA allowed amount?

    1. Hi Sara:

      Great question. If another VA entitled borrower assumes your loan, it’s then transferred to their entitlement. Your full entitlement amount is restored. Let us know if you have any other questions.

      Thanks,
      Kevin Graham

    1. Hi David:

      Yes, the VA allows you to assume the loan in the event of your father’s passing. Please let us know if you have any other questions.

      Thanks,
      Kevin Graham

  44. I am a retired military/veteran and bought my house in 2014 through VA loan. I am currently selling my house to purchase another and an offer was made but the buyer will be using FHA to purchase the house. Once the buyer is approved to purchased my house through FHA, will I be eligible to purchase another house using VA loan?

    1. Hi Jaime:

      I’m not the most familiar with the way the VA entitlement works, so I’m going to get your question to one of our Home Loan Experts. They’ll be able to give you more information.

      Thanks,
      Kevin Graham

  45. My dad bought a house through the va March of 2016. I am living with them(daughter) and he wants me to have the house when he passes. How do we keep the house with the payments? I sold my business in Maryland to move here to help, so I do not have income coming in except the money I have from the business. My mom is on the deed but not the loan. If something happens to my dad and or mother will I be one homeless?

    1. Hi Jill:

      I’m going to have someone reach out to you to give the best possible advice for what happens when you inherit the house.

      Thanks,
      Kevin Graham

  46. I am in looking at assuming a VA loan. I am a veteran and the loan is serviced by quickenloans. What is the fastest way to get into contact with your company to speak with someone on the phone outside of the east coast business hours? I have many questions and a prompt response would be fantastic.

    1. Hi John:

      I’m going to have someone reach out to you today regarding the best time to reach you. We should be able to accommodate time zone differences. Look for an email from our Client Relations team. Thanks for reaching out!

      Kevin Graham

  47. My son and his wife are thinking about selling their house and was inquiring if they would qualify for my VA loan since I never used it. I understand they are not eligible–but could I buy the house using my VA loan and then assuming they qualify could they assume the mortgage?? And how soon after I purchase the home can I turn around and sell it to them and have them assume the VA loan? And what can kind of fees are involved ? Thank you.

    1. Hi Chris:

      That’s a complex question. It would be best to have a Home Loan Expert reach out and go over this with you. They’ll be in contact.

      Thanks,
      Kevin Graham

  48. We are in the process of having our home on the market for assumption. If someone non military assumes it what exactly happens for us? We lose all of out entitlement or just that portion that we used. Although we are no longer financially responsible could it still effect us or his job in anyway? Want to make sure we understand all the posibilities of what could happen.

    1. Hi Samantha:

      I’m going to forward this to one of our VA Home Loan Experts to go over this with you. They’ll be reaching out soon.

      Thanks,
      Kevin Graham

  49. I just got a VA loan of $144,000 for our house. Since WE pay no taxes any more either Fed.. or State the interest deduction we do not need or use can we let our son assume our VA loan so that he can use the deduction We live off of our SS and my 100% VA disability. He makes around $65,000 a year. Our rate is 2.75% and our monthly payment with Tax and Insurance is $875. His only other bill is his car payment of $525 a month

    1. Hey Rodney:

      It’s difficult to answer assumption questions here because these qualifications rely so heavily on a person’s unique financial profile. However, I’m going to get your comment in front of our Home Loan Experts you may be able to give you more information and potential next steps.

      Thanks,
      Kevin Graham

  50. Hello,
    I have a VA loan now and have had It for over 7 years. I am selling my home to a retired veteran and he would like to assume the mortgage.
    He was going to assume the mortgage for what is owed on the house through the VA and give me a check for the differance as the home has some equity and is worth more then I owe.
    I was told that this was not allowed, that I have to sell the house for the amount owed to the VA and was not allowed to get any more money for it.
    This does not sound right to me. Why would I sell my home for less than it is worth?
    Can you please shed some light on this for me?
    Thank you

    I was told it can be done, but

    1. Hi Darlene:

      When someone assumes a property, they’re assuming the current terms of the mortgage. I’m going to pass this comment along to a Home Loan Expert to help answer your question regarding a possible extra payment.

      Thanks,
      Kevin Graham

      1. Would you please forward me the reply Darlene received. My husband and I are looking for a home. He is a disabled vet who qualifies for a VA home loan. A real estate agent told us that just because the posting says the loan is VA assumable, the seller might ask for a large down payment (cash) to recover what they have already paid. Is this true, and how do you know?
        Thank you

  51. My husband and I are getting divorced. He is the only one on the mortgage and the deed. Is it possible for me to assume the loan although it’s a VA loan and I’m not a veteran? I would like to keep the house.

    1. Hi Nicole:

      it is possible, assuming you meet the VA’s loan requirements for being able to pay it off. You do have to pay the VA funding fee. Your husband would also lose his VA entitlement in this case. I’m not sure if that’s something the two of you have talked about, but if he lost the entitlement, he wouldn’t be able to get another VA loan. I hope this is helpful in laying out some of the issues.

      Thanks,
      Kevin Graham

  52. I have a VA loan on two houses the balance is 145k and 165k. I am PCSing again and need to buy another house can I get a third VA loan for 110k?

    1. Hi Jeremy:

      Good luck with your station change. I’m going to send your question to one of our Home Loan Experts to see what your options might be. They’ll be reaching out.

  53. How long does the vet have to occupy a property before the loan can be assumed? Also does the loan have to be behind or can the vet let someone assume the mortgage for any reason?

    1. Hi Cheri:

      The veteran doesn’t have to be behind and, in fact, they should be current on their payments, but I’m going to pass your question along to one of our Home Loan Experts who can give you more information on your question.

      Thanks,
      Kevin Graham

  54. If the new VA buyer of a property is assuming a VA loan, does that buyer also have to agree to live in the home? If the new VA buyer is buying the property for an investment, is the seller released from liability and eligibility assuming the new VA buyer qualifies?

    Randy

    1. Thanks for your comment, Randy. I’m going to pass this one on to one of our home loan experts. They can look into your situation and send you an email. Have a nice Tuesday!

  55. I have a question. I have really terrible credit due to a bad divorce which left the two of us filing bankruptcy. I’ve also had a car repossessed. I am trying to get my life back on track & recently found the perfect home for sale or rent. I had already given my deposit when the owner informed me that he’s had someone contact him interested in purchasing the home. I am not in the position to purchase due to my terrible credit. But the owner said the loan is VA assumable & my Dad was in the military & could possibly assume the morgage. But, he & my mom are planning on building a home in the next few years and are worried of they assumed this morgage their income ratio thing would not allow them to morgage the home they’re planning on building. So my question is, if he were to assume the loan would it show him as the responsibile morgage holder, or would the prior owner?

    1. Thanks for your comment, Jennifer. Since your situation has so many factors, I’m going to reach out to a home loan expert. They’ll dive in to the specifics of your situation and send you an email. In the meantime, take a look at this article about rebuilding credit!

  56. My dad & mom obtained a VA loan in 2004, jointly. Dad has since passed in 2007 and now my mother’s health has taken a drastic turn. Mom wants to will the house to my sister, who was never on the deed or the loan. Will this require applying for a new mortgage? Do we need to complete Probate before addressing this issue. Thank you for your help as we are trying to be proactive and not reactive during this stressful time. Many thanks for your help.

    1. We’re so sorry to hear about your mother, Deby. I’m going to have one of our home loan experts reach out to you directly with an email. They’ll get a few more details from you and give you the best possible answer. Everyone’s situation is different, but we will do our best to point you and your family in the right direction. Take care.

  57. I’m the spouse of an Active Duty Service member and we’re looking into buying a house. We’ve prequalified for a conventional mortgage loan, but am looking into the advantages of a VA mortgage loan (like no downpayment, for example). I’d like more information about how a VA loan can be assumed by a non-VA civilian (should we choose to sell the house after a change of station) and whether this will make qualification harder on the next property loan, VA or otherwise. Thanks.

  58. We have a VA loan that our kids want to assume. I know there is a .5% funding fee, but what else are they allowed to charge. It seems the bank is trying to add fees that we were never told about til now. We don’t know where or who to contact to find out, what the real deal should be. Thanks

    1. Good morning, George! That’s a big question, and a lot of it is going to depend on your personal situation. And since the devil’s in the details, I’m going to have a home loan expert send you an email with some questions. We’ll get to the bottom of this together. Have a good one!

  59. My mother has her house on a VA loan she is moving and my name is on the deed. Ive been paying the mortgage for 3 yrs now. How can i assume it without changing whats owed on it and how much the payments are?

  60. It would be nice if you answered the questions posted here. Everyone was a referral to someone else. I have the same question as another post. If I have a VA loan, Can someone who is not a veteran assume my loan

  61. My husband and I are separating. I have the VA loan solely in my name, but he wants to assume the mortgage and keep the house. Both of our names are on the deed. If he can assume the mortgage and I can take my name off the deed, what else do I need to do to ensure I am no longer liable with the government?

    1. Hi Laura! I’ve passed your question on to our home loan experts who will reach out with more information.

  62. I am a veteran with a VA loan on a home build in 2012. My wife and I are divorcing amicably and I want to buy her out of the home. Can I essentially assume my own loan just to remove her? I did qualify for the loan without her income. Also, what may be the best route to pay her 50% of the equity on the house; can I borrow against the loan or should I take out a separate loan to repay her?

    1. Hi Blain! I’ve passed your question on to our mortgage experts who can advise you more specifically for your situation.

  63. I am a veteran who purchased a home on my VA eligibility. I want to sell my home under an assumption to a non-veteran. I am getting mixed responses to my inquiries whether or not I am allowed to. My mortgage is through Wells Fargo, my relator has received a different answer than I have. Also, am I able to receive a new VA loan for my new house after an assumption, if I receive a release of liability?

    1. Hi Lori! He would be able to assume your fathers VA loan and your father’s entitlement would still be tied to the property until the loan was refinanced or paid in full.

  64. The male veteran passed away, both husband and wife’s name are on the Trust deed.There was no estate. nothing filed, other than Death Certificate recorded.

    Some one is willing to assume my loan now I am the surviving spouse. The party wishing to assume loan have been approved.
    Now the Mortgage holder (Wells Fargo) say there has to be a probate document to go ahead.

    There was no probate. There was no estate, nothing. t recourse do I have? Can you direct me to a source that can help me. I am going to loose the house.

    1. Hi Dorothea! I’ve passed this on to our mortgage experts who will reach out and dig into this further for you.

  65. Can the surviving adult children of a deceased veteran with a VA loan assume the loan? Is their laws that protect us from losing our mothers, (deceased), home?

  66. To the previous commenter, all FHA, VA, and USDA loans are assumable. As rates rise off historical lows there is more value in an assumable mortgage than many people realize. For more information there are some good sites to check out:

    Wikipedia – Mortgage Assumption

    HUD Handbook – Chapter 7

    Zumption – Assumption FAQ and Listings

  67. I had an original post that did not go through. I was saying how this article was helpful in determining what properties to look at and is and how existing VA loans could be assumed. That now I needed to look for articles on other lone programs and if they could be assumed.

    Thanks
    Norm

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