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\n <\/div>\n \n Partner With a Top Agent Familiar With Assumable Mortgage Listings<\/h3>\n
HomeLight can connect you with a top-performing real estate agent who understands the ins and outs of assumable mortgage listings in your market.<\/p>\n \n
What is a VA assumable loan?<\/h2>\n
A VA (Department of Veterans Affairs<\/a>) assumable loan is a unique financial option that allows a qualified individual to take over the mortgage of a home with an existing VA loan. This means if you’re considering buying a home, you can assume the seller’s VA loan instead of taking out a new mortgage.<\/p>\n The most attractive feature of this arrangement is the potential to inherit the seller’s interest rate, which could be significantly lower than current market rates. According to data from the Government National Mortgage Association (Ginnie Mae<\/a>), about 90% of all VA homeowners have a mortgage rate below 5%.<\/p>\n \u201cOne big advantage is obviously getting a lower interest rate,\u201d says Eric Broesamle<\/a>, a top Michigan real estate agent who has been helping home buyers for more than 22 years. \u201cIf the existing mortgage has a lower interest rate than the current rates, the assumable mortgage will allow the borrower to retain that better rate.\u201d<\/p>\n A lower interest rate can lead to more manageable monthly payments and overall cost savings, clearing a path to homeownership that might otherwise be out of reach.<\/p>\n For example, if you assume a $400,000 VA loan at a 3% interest rate compared with a new loan at 8%, you can save $1,250 per month with the lower payment.<\/p>\n Broesamle adds, \u201cA lot of buyers don’t know that this is an option.\u201d<\/p>\n