CONTACT A VA LOAN SPECIALIST:808-792-4251
CONTACT A VA LOAN SPECIALIST:808-792-4251
They say the way to keep from making assumptions is to ask questions. At Hawaii VA Loans, we like to anticipate your VA loan questions before you ask them. So what is VA loan assumability? Find out the positive and negative aspects of assuming a VA loan, and how the process works when selling or buying.
Normally, when homes are sold, the existing mortgage is paid off. However, there are cases when the purchaser of a home can take over the existing loan payments. This is referred to as “assuming” the loan. Not all types of loans have this feature. Typically, it is adjustable rate mortgages that are assumable (and only after their initial fixed period is complete). However, VA loans are assumable even for fixed rate loans.
If the original loan was a VA Guaranteed Home Loan that closed after March 1, 1988, it is possible for a Veteran to sell the property subject to the assumption of the loan payments by the purchaser. Furthermore, the purchaser assuming the VA loan payments does not have to be a Veteran.
Some assumable loans may indeed be an attractive way to buy a home. Especially if current interest rates are higher than when the seller took out the mortgage.
There are potential risks and complications of an assumable mortgage to both buyer and seller:
If the assumption is known at time of purchase contract, there should be a provision in the sales contract that the purchaser will assume all the obligations of the VA loan. The following stipulations apply:
Thus, VA loan assumability is a pretty interesting way to make a purchase that needs special attention. Make sure you’re working with a VA Loan Specialist who can walk you through the process. If you have any follow up questions, please do not hesitate to contact us at 808-792-4251.
"Brenda Carr is the absolute best. I worked with her about 4 times now and it gets easier each time."
"Brenda Carr is the absolute best. I worked with her about 4 times now and it gets easier each time."
"Brenda was amazing to work with! As a first time home buyer, I came into the process feeling ignorant and intimidated. Brenda put me right at ease! She walked me through everything step-by-step, answering my many questions with honesty and professionalism. Her approachability, in depth knowledge, and responsiveness helped me feel confident and empowered through the entire home-buying process. Thank you, Brenda!!"
"Brenda was amazing to work with! As a first time home buyer, I came into the process feeling ignorant and intimidated. Brenda put me right at ease! She walked me through everything step-by-step, answering my many questions with honesty and professionalism. Her approachability, in depth knowledge, and responsiveness helped me feel confident and empowered through the entire home-buying process. Thank you, Brenda!!"
"Brenda made the whole process easy, convenient and stress free. I would recommend her to all my friends."
"Brenda made the whole process easy, convenient and stress free. I would recommend her to all my friends."
"Brenda guided us through every step of the process. She is truly amazing!"
"Brenda guided us through every step of the process. She is truly amazing!"
"Brenda was very friendly, timely, and helpful throughout the entire process. As a first time buyer, I didn’t know what to expect and she made everything very smooth and easy. I highly recommend!"
"Brenda was very friendly, timely, and helpful throughout the entire process. As a first time buyer, I didn’t know what to expect and she made everything very smooth and easy. I highly recommend!"
"Brenda and her team were absolutely wonderful to work with. They were informative, responsive and made our home purchase stress free. This was our first time using dual VA benefits and was by far the best home buying experience we’ve had. I highly recommend Brenda to anyone looking to purchase or refinance their home."
"Brenda and her team were absolutely wonderful to work with. They were informative, responsive and made our home purchase stress free. This was our first time using dual VA benefits and was by far the best home buying experience we’ve had. I highly recommend Brenda to anyone looking to purchase or refinance their home."
"51 years after completing my 2 years of service, I was humbled by the love and respect I received through the entire process of applying for and obtaining this VA loan. Brenda, with assistance from her very talented sister, provided us with a meaningful one-of-a-kind memento at our signing. Thank you again for the great experience!"
"51 years after completing my 2 years of service, I was humbled by the love and respect I received through the entire process of applying for and obtaining this VA loan. Brenda, with assistance from her very talented sister, provided us with a meaningful one-of-a-kind memento at our signing. Thank you again for the great experience!"
"Brenda was immensely helpful and understanding of our situation and needs. She was always available to answer questions or meet with us. It was a pleasure to work with her."
"Brenda was immensely helpful and understanding of our situation and needs. She was always available to answer questions or meet with us. It was a pleasure to work with her."
"My new homeownership which recorded today, would not have ever been possible if not for the expert knowledge and sincere personal touch of loan officer, Brenda Carr. "Grateful" is the one word that describes my loan experience."
"My new homeownership which recorded today, would not have ever been possible if not for the expert knowledge and sincere personal touch of loan officer, Brenda Carr. "Grateful" is the one word that describes my loan experience."
"Brenda was hands down a Rockstar from start to finish! She was so easy to communicate with and made the process super fun, easy and enjoyable. By closing, her friendly demeanor made it feel like we were working with a family member. Couldn't be more happy with her service to us and her overall professionalism with added care!"
"Brenda was hands down a Rockstar from start to finish! She was so easy to communicate with and made the process super fun, easy and enjoyable. By closing, her friendly demeanor made it feel like we were working with a family member. Couldn't be more happy with her service to us and her overall professionalism with added care!"
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