What Is a VA Loan Assumption? 

A VA loan assumption allows a qualified buyer to take over the terms of an existing VA mortgage, including the interest rate, loan balance, and repayment period. Instead of starting fresh with a new loan, buyers step directly into the seller’s financing arrangement. This matters in San Antonio’s housing market, where rising rates and longer DOM are making affordability a top concern. A buyer assuming a VA loan can potentially lock in a 3% rate instead of taking on a 7% rate available today. 

Why VA Loan Assumptions Matter in San Antonio 

For Buyers 

Lower Interest Rates: Many loans originated between 2020–2022 have rates in the 2–4% range. 
Monthly Savings: On a $350,000 loan, the difference between 3% and 7% is nearly $900 a month. 
No PMI: VA loans don’t require private mortgage insurance, saving additional costs. 

For Sellers 

Attract More Buyers: Homes offering assumable VA loans stand out in San Antonio’s competitive listings. 
Shorter Marketing Time: Buyers are motivated by affordability, helping reduce days on market. 
PCS-Friendly: For military relocations in and out of San Antonio, assumptions ease the transition. 

How the VA Loan Assumption Process Works 

While the idea is simple, the process requires patience and proper documentation. 
1. Buyer Eligibility Check – Lenders verify credit, income, and occupancy. 
2. Authorization Forms Submitted – Seller grants written permission so their Realtor can communicate with the servicer. 
3. Lender & VA Review – Documents are processed; timelines vary from 30–90 days. 
4. Closing – Buyer assumes the loan, and the seller is released (if liability release is approved). 

Key Benefits for San Antonio’s Military Community 

San Antonio is home to Joint Base San Antonio (JBSA) and thousands of active-duty and retired service members. VA loan assumptions are especially valuable during PCS moves, when affordability and quick solutions are critical. 

Potential Challenges 

Extended Timelines: Some servicers take up to 90 days to finalize an assumption. 
Entitlement Restrictions: If a non-Veteran assumes, the seller’s VA entitlement remains tied to the loan. 
Release of Liability: Sellers must confirm in writing that they’re no longer responsible for the mortgage. 

Final Thoughts 

VA loan assumptions give both buyers and sellers a competitive advantage in San Antonio’s changing real estate market. With the right preparation and guidance, they can be a powerful tool to save money, close deals, and support military families. 

Frequently Asked Questions

Q. Can non-Veterans assume a VA loan? 
Yes, but the seller’s entitlement may remain tied to the home until the loan is paid off. 
 
Q. How long does a VA loan assumption take? 
Most take 45–90 days, depending on the lender’s processing speed. 
 
Q. Do VA loan assumptions require an appraisal? 
Often no, which can save buyers hundreds of dollars. 
 
Q. Do I need to be a Veteran to assume a VA loan? 
No, but only Veterans can substitute entitlement so sellers regain their VA benefit. 
 
Q. Is an assumption better than a rate buy-down? 
Often yes, because assumable rates are permanent, while buy-downs are temporary. 

Thinking about selling your home or exploring VA loan assumptions? Contact Tami Price, Realtor®, San Antonio’s trusted Realtor team, to access expert guidance, listing strategies, and a network of VA loan specialists. We’re here to help you navigate the San Antonio real estate market, and make smart financial moves.