Posted
by Lauren Schneider
on Sunday, November 30th, 2025 at 11:02am.
Today's interest rates and housing inventory levels are making national headlines nearly daily, with speculation growing about what it will take to boost home purchases and get buyers off the sidelines. One underutilized strategy in today's market is finding a seller who has an assumable loan.
How do you find an assumable loan opportunity? Many current sellers purchased their homes, or refinanced their homes, when interest rates were below 4%, making their homes ideal "assumption" opportunities. If a seller has a VA or FHA loan on their home, their loan balance, and interest rate, is assumable, meaning a new buyer can take it over exactly where is stands today. So where do you start?
Work with the MilitaryHomeSearch.com team to find a home that is offering a VA or FHA assumption. If you find a VA assumable loan, and if you have your own VA entitlement, you would use it on your assumption purchase, and agree to release the sellers' VA entitlement so they could use their entitlement on a future home purchase. This doesn't apply to a FHA loan assumption. If you don't have your own VA entitlement, you will have to ask the seller if they are willing to part with theirs in order to have you assume their loan when you purchase the home.
Of note: on an assumption purchase, you are only able to assume the existing loan amount at the existing rate. If the home you want to purchase is listed at $500,000, and the existing loan at a 2.5% interest rate is $400,000, you will need to bring $100,000 to closing in order to purchase the home at the existing 2.5% interest rate.
VA assumptions can also be a tool used by investors to purchase investment properties, but again, the seller would have to agree to part ways with their VA entitlement. Instead of using a lender of your choice on an assumption purchase, you would use the lender who currently holds the existing mortgage on the home.
If you're looking for a VA or FHA assumable loan near Fort Carson, Peterson SFB, Schriever SFB, USAFA, or Cheyenne Mountain Space Force Station, we have you covered! Reach out to our team learn more about these properties, and more!
Would you like to connect to discuss your real estate needs? We’re here to help! Leave us a message here or call 719-338-7294 to speak to one of our Realtors today.
