Lock in a Seller’s Low VA Loan Rate and Save Big on Your Next Home
VA Assumable Loans: How Buyers Can Take Over a Seller’s Low Interest Rate Imagine buying a home today and taking over the seller’s existing 2% or 3% mortgage rate. With a VA assumable loan, that may be possible. VA loans are generally assumable, meaning a qualified buyer can take over the seller’s existing mortgage, including its remaining balance, interest rate, and loan terms, subject to approval. The biggest consideration is often the equity gap. If a home sells for $600,000 but the seller owes $450,000, the buyer needs to cover the $150,000 difference, typically through cash or potentially secondary financing. There’s also an important consideration for VA sellers: entitlement. If an eligible Veteran or service member assumes the loan and substitutes their VA entitlement for the seller’s, the seller may be able to restore the entitlement tied to that property. If a buyer without sufficient VA entitlement assumes the loan, the seller’s entitlement can remain tied up until the loan is paid off, refinanced, or otherwise qualifies for restoration. For military homeowners and buyers, especially those relocating to Fairfield or Travis Air Force Base, VA assumable loans can create a valuable opportunity when a seller has a significantly below-market interest rate. The interest rate may get your attention, but understanding the equity gap and VA entitlement is what makes an assumption work strategically. Evangeline Nguyen, REALTOR® eXp Realty | DRE #02210833
September 4, 2026