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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP are you still here?
I'm just nosy and like the pp above me, am really curious what the situation is?
Do you already have an accepted offer on a house, using assuming their VA loan?  Or were you just hoping to make such an offer?[/quote]

OP here! No current contract underway. I'm just exploring options at this point and curious. I recently learned that it is legal for civilians to assume VA loans, so I created this post to try to learn more. Assuming a loan with an ultra-low pandemic-era interest rate would increase our buying power significantly compared to current interest rates... but most assumable loans are VA loans, and my household is entirely civilian. Hence the question.[/quote]

Doesn't hurt to ask, I guess.   I was surprised to learn this was even allowed, and even more surprised to read here that some posters would be fine giving up their VA loan.
A pp already mentioned this, but I wanted to emphasize, that you need to come up with the difference in the sales price and the loan.  So say for example, you are buying the house for $800k, and the veteran seller still owes $500,000 on their VA loan.  You need to come up with that $300k difference--you can't use the VA loan to finance more than what the original loan holder took out.[/quote]

I'm aware, but the equity payment is in lieu of a down payment. There is no down payment when assuming a loan, just covering the equity gap. If someone bought in 2020 and snagged a 2.5% interest rate, they only have 5 years of payments behind them, so the equity may only be between 10% and 20% of the home value... so, no more than a down payment. Obviously if they have more years of mortgage payments behind them, you could be talking about a much higher % of the home's value.[/quote]
You’re not factoring in appreciation there, either. PP who posted that we offered a home with a VA loan. Redfin shows the value at 1.09 in 2021 and we sold last year for 1.7. Those numbers aren’t super accurate but it was at least a half million during that time period in appreciation alone.

Good luck finding a home that was purchased within the last five years, has an assumable VA loan that they are willing to give up, is what you are looking for, and you have your bid accepted on. I mean maybe it can happen but that’s highly unlikely. [/quote]

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