For military families and veterans, VA loans are one of the most powerful homebuying tools available. But there’s another little-known benefit that often gets overlooked: VA loan assumptions.
If you’ve heard people say, “VA assumptions take forever” or “Only veterans can assume VA loans” — you’re not alone. Unfortunately, these myths stop many buyers and sellers from taking advantage of an option that can save thousands of dollars and make selling a home much easier.
In this guide, we’ll break down the most common myths about VA assumptions and uncover the truth behind how they really work in today’s market.
What Is a VA Loan Assumption?
A VA loan assumption allows a qualified buyer to take over a seller’s existing VA loan, including the current interest rate and loan balance. For buyers, this can mean locked-in low rates that are often well below today’s market average. For sellers, it opens the door to a larger pool of buyers — especially when affordability is tight.
Myth #1: “VA Assumptions Take 6 Months”
The Reality: While assumptions do require lender approval, they don’t drag on for half a year. Many VA assumptions close in a timeline comparable to traditional financing, often around 30–60 days depending on lender responsiveness.
Why It Matters: Buyers get into their homes faster, and sellers don’t lose valuable time waiting around.
Myth #2: “Assumptions Are Bad for Sellers”
The Reality: In many cases, assumptions actually help sellers. Imagine advertising your home with a 3% assumable loan when market rates are 6–7%. That’s instant appeal.
Pro Tip: A VA assumption can often mean a higher sale price or faster offers since the buyer is essentially inheriting a financial advantage.
Myth #3: “Only Veterans Can Assume VA Loans”
The Reality: Non-veterans can also assume a VA loan — as long as they qualify with the lender. The key difference is whether or not the seller’s entitlement is released.
-
If a veteran assumes, entitlement may transfer.
-
If a civilian assumes, the original veteran’s entitlement may stay tied up until the loan is paid off.
This is why working with a knowledgeable real estate agent is crucial.
Myth #4: “The Seller Is Still Liable After the Assumption”
The Reality: If done properly, with lender and VA approval, the seller is released from liability. This means you’re not on the hook if the buyer defaults.
Myth #5: “Veterans Always Lose Their Entitlement”
The Reality: Entitlement can be restored. When the assumed loan is paid off or refinanced, the veteran’s entitlement is once again available for future use.
Why VA Assumptions Matter Right Now
-
Interest Rates: With today’s higher rates, assuming a VA loan with a 3% or 4% rate is a massive financial win for buyers.
-
Affordability: Assumptions can make homes more affordable and accessible to families who might otherwise be priced out.
-
Market Advantage: For sellers, an assumable VA loan is a marketing tool that can set your property apart from every other listing in your neighborhood.
How to Prepare for a VA Assumption
If you’re a buyer:
-
Check your credit and income readiness — the lender will still verify qualifications.
-
Ask your agent to review assumption eligibility with the seller’s lender.
-
Be prepared for a down payment if the home price is higher than the remaining loan balance.
If you’re a seller:
-
Confirm with your lender whether your loan is assumable.
-
Ask your real estate agent how to market this benefit to buyers.
-
Ensure release of liability is part of the approval process.
Why You Need the Right Agent
Not every agent understands the ins and outs of VA assumptions — but it can make or break your deal. An experienced real estate professional who works with military families (like Kina Knisley, Keller Williams Honolulu) knows how to navigate the paperwork, timelines, and lender communications to protect your interests.
VA loan assumptions aren’t a loophole — they’re a powerful, underutilized benefit. For buyers, they can mean thousands saved on interest. For sellers, they can be the competitive edge that makes your home irresistible.
If you’re considering buying or selling with a VA assumable loan in Hawaii, don’t let the myths stop you from exploring your options.
Contact Kina Knisley RS-78283, Keller Williams Team K2
808-681-9594
Let’s talk about whether a VA assumption could be the right move for you.
