VA Loan Assumption · Arizona

How to assume a VA loan in Arizona

A VA loan can be passed from the seller to a buyer along with its interest rate. If the seller locked in a low rate, the buyer takes over that rate, the remaining balance and the remaining term. Here is how the process works, what it costs, and where it can go wrong.

See Arizona homes with an assumable VA loan Book a free strategy session

Eligibility

Who can assume a VA loan

You do not have to be a veteran. Veterans and non-veterans can both assume a VA loan, as long as the loan servicer approves the buyer's credit and income. The VA sets no minimum credit score; each servicer sets its own. The loan also has to be current, or brought current at closing.

The process

The steps

Find a home with a VA loan

I track active Phoenix-area listings that appear to carry one and verify the loan with the listing agent.

Run the numbers

You pay the difference between the price and the loan balance. On a $420,000 home with a $310,000 balance, that gap is $110,000, paid in cash, with a second loan, or both.

Write the offer as an assumption

The contract states that the sale depends on the servicer approving the assumption.

Apply with the seller's loan servicer

The paperwork is similar to applying for a new VA loan.

Wait for the decision

Servicers with authority to approve have 45 days from a complete application. In practice, plan for longer than a standard closing.

Close

You take over the payments, and the seller requests a release of liability.

Costs

What it costs

The VA charges a funding fee of 0.5% of the loan balance, paid at closing; it cannot be rolled into the loan, and some buyers are exempt, including veterans receiving VA disability compensation. The servicer charges a processing fee that the VA caps. Standard closing costs apply, and the gap between price and balance is the largest number to plan for.

For sellers

What happens to the seller's VA entitlement

This is the part sellers most need to understand. If the buyer is an eligible veteran who substitutes their own entitlement, the seller's entitlement is restored. If the buyer is not a veteran, the seller's entitlement stays tied to the loan until it is paid off, which can limit the seller's next VA purchase. Sellers should also request a release of liability from the servicer; it is not automatic.

Common questions

Can I use a second loan to cover the gap?

Yes. It must sit behind the VA loan, its payment counts toward your qualification, and you cannot take cash back.

Does the interest rate change?

No. The rate, balance and remaining term carry over.

How long does it take?

Servicers with approval authority have 45 days from a complete application. Plan for longer than a typical purchase.

Is Arizona different from other states?

The VA's rules are national. What is local is the supply: the Phoenix area, particularly near Luke Air Force Base, has many homes with VA loans.

Do I need an agent who knows assumptions?

An assumption has extra steps and a different timeline. I handle the servicer coordination on both sides.

General information, not legal, tax or lending advice. VA rules and fees change; confirm current requirements with the loan servicer.

How assumable mortgages work · Assumable homes in Goodyear · How to assume an FHA loan

Thinking about assuming a VA loan?

Book a free 30-minute strategy session, or call 480-529-7253. I'll review the loan and tell you what your situation allows.

Book your free strategy session

AZ License SA653075000 · My Home Group · Equal Housing Opportunity

Johanna Graff Serving Greater Phoenix Metro [email protected] | (480) 529-7253

My Home Group | Johanna Graff | License #SA653075000 | 8350 E. Raintree Dr suite 210 , Scottsdale, AZ 85260