The Department of Veterans Affairs issues countless home loans to active and former service members. One of the top VA loan benefits is that they’re assumable when you work with a lending team like Champions Mortgage, a leading mortgage broker in Sugar Land, TX. How long does it take to assume a VA loan and what does the process entail?
This guide explains everything you need to know about VA loan eligibility and the loan assumption process.
The Basics of VA Loan Assumption
Say your home search leads to an accepted offer from a seller with an existing VA loan mortgage. You can apply for VA loan approval and assume the seller’s mortgage with all of the original loan terms, including:
- Interest rate
- Monthly payment
- Total loan payment period
While assumable VA loans must be opened by a qualifying veteran, you don’t have to be a veteran yourself to assume an existing home loan.
Pros and Cons of Assuming VA Loans
Discover some of the biggest benefits and potential drawbacks of assuming mortgage terms from a seller. By assuming a seller’s VA loan, you’ll enjoy the following advantages:
- Relief against rising interest rates
- Potentially lower monthly payments
- Accessibility for non-veterans
However, there are a few drawbacks to consider as well. Candidates must qualify for the loan and earn approval from a lender and the Department of Veterans Affairs. Sellers also face liability risks if the buyer who assumes the loan defaults on their mortgage.
Factors That Affect the VA Loan Approval Process
The home-buying process can be lengthy between securing a mortgage, looking at homes, and closing a sale, and buying a house with an assumable VA loan is no different. How long does it take to assume a VA loan? Below are the biggest factors that impact the length of the process.
Loan Eligibility Issues
Home buyers must gain approval from lenders before they can assume a VA loan. This approval depends on them meeting certain criteria, including:
- A minimum credit score
- Reliable income sources
- Favorable debt-to-income ratio
Consult a mortgage lender to discuss your eligibility and see if you qualify for VA loan assumption.
Incomplete Applications
If you try to apply for a VA loan assumption and don’t have all of your paperwork in order, lenders won’t consider the application legitimate. They can scrap your efforts and force you to start over again, which can delay the process significantly.
The Seller’s Loan Status
Ask a lending specialist, “How long does it take to assume a VA loan?” and they’ll tell you that it depends on the seller’s status. If they’re behind on payments or face legal issues with the loan, it’s harder for buyers to assume the loan. The process is much easier when sellers make consistent payments on the mortgage.
Final Approval Processing
Buyers would have to wait several months to assume a VA loan under the old standard. However, the VA and its collaborative lenders now mandate a 45-day period to complete the process. Efficient lenders can approve the loans in a matter of days while backlogged applications may force buyers to wait the full 45 days for approval.
Contact Our Experienced Lenders About Assuming a VA Loan
After reading this post, you no longer have to wonder, “How long does it take to assume a VA loan?” To learn more about this process or to receive important mortgage approval tips, reach out to the experts at Champions Mortgage. We help buyers like you secure mortgages and end up in their dream homes.
To speak with a lending specialist, give us a call at (281) 727-2500. Learn more now.
