Assumable Loans

 The main reason for assuming a loan is to take over the low rate. For the past 40 years rates have gone down. It wouldn't make sense to assume someone's higher-than-market rate. Rates have spiked up over the past year, so there is an abundance of lower-rate mortgages to assume.

As a seller, your low-rate mortgage has value. It is an asset. You sell that asset instead of throwing it away in the home sale. As a buyer, you assume a mortgage with a lower rate which translates to a lower payment. It is a win-win.

All VA and FHA loans are assumable per the US Government. Technically other loans could also be assumable but most conventional loans have a Due on Sale clause. Simply put, this means if you sell the home, the lender has the right to be paid back. 

The down payment needed is the difference between the sales price and the amount owed on the assumable loan. This varies with each home. In some cases, we have seen homes with ZERO down payment needed.

The assumption process typically takes 45-90 days depending on the servicer. (Servicer is the seller's current mortgage company).

Yes, all VA loans are assumable.

Plus, a VA loan does NOT have to be assumed by a veteran. Non-veterans can also assume - including investors.

Yes, they can.

Veterans also have bonus entitlement, which will dictate how many additional loans they can have.