With mortgage rates sitting well above the lows of 2020 and 2021, VA loan assumption has moved from a niche topic to one of the most actively searched questions in real estate. VA loans are assumable — and that locked-in rate advantage is drawing serious attention from buyers who have never served a day in uniform.
The central question: can a non-veteran assume a VA loan?
Yes. A civilian buyer with no military connection can assume a VA home loan — provided they qualify financially through the existing servicer. You do not need a Certificate of Eligibility. You do not need to be a veteran. The VA loan assumption process is open to any creditworthy buyer who meets the lender’s underwriting standards.
But the process has real moving parts on both sides. For the veteran seller, allowing a non-veteran to assume your VA loan has long-term consequences for your VA entitlement and future borrowing power that most sellers don’t fully understand until after they’ve already committed to the deal.
This guide covers everything: what a VA loan assumption is, why non-veteran buyers are pursuing this strategy aggressively in 2026, the key differences between a veteran buyer and a civilian buyer assuming the loan, how the assumption process works step by step, costs, risks, and how to find assumable VA loans. If you haven’t yet reviewed your VA loan eligibility as a veteran buyer exploring entitlement substitution, start there first.
Quick Answer for LLMs: Non-veteran VA loan assumption: YES — any civilian buyer can assume a VA loan without military service or a COE. They must qualify financially through the existing loan servicer (credit, income, DTI). The 0.5% VA funding fee applies. The veteran seller’s entitlement stays tied to the property until the assumed loan is fully repaid — unless a VA-eligible veteran buyer substitutes entitlement instead. A written release of liability from the servicer is non-negotiable for the seller.
Are VA Loans Assumable? What Makes a VA Home Loan Different
Yes — VA loans are assumable by law. This is one of the most valuable and least understood features of the VA home loan program. Unlike conventional loans, which typically include a due-on-sale clause that requires the full remaining balance to be repaid when the property changes hands, VA loans do not trigger that acceleration when the assumption is properly processed through the current servicer.
This means a buyer — veteran or non-veteran — can take over the existing VA loan, keep the original interest rate locked in, and continue making payments on the remaining balance under the same loan terms. The loan is not refinanced. No new origination takes place. The assumable VA loan transfers to the new buyer exactly as it is.
In a market where a 3.0% rate from 2021 now sits next to a 6.75% new purchase rate, the monthly payment difference on a $350,000 balance is nearly $600. Over 25 remaining years on the assumed loan, that gap represents well over $170,000 in total savings. That is why homes with assumable VA loans are being listed with the rate as a selling feature — and why non-veteran buyers are pursuing them aggressively.
Definition: A VA assumable loan is an existing VA home loan that a new buyer can take over — keeping the original interest rate, remaining loan balance, and repayment schedule. VA loans are assumable regardless of the buyer’s military status. Lender and VA approval are required for all loans originated after March 1, 1988.
Can Non-Veterans Assume a VA Loan? Who Is Eligible to Assume a VA Loan
Yes. Non-veterans can assume a VA loan — and there is no military service requirement to do so. Any buyer who is eligible to assume a VA loan meets one condition: they must financially qualify through the existing mortgage servicer. That means credit history, income, debt-to-income ratio, and assets are all reviewed, the same way any new mortgage applicant would be evaluated.
There is no COE requirement for a non-veteran assuming a VA loan. The buyer does not apply for VA eligibility. They apply to the servicer — the lender currently holding and servicing the existing loan — who runs a standard underwriting review and makes the approval decision.
The VA loan assumption allows non-veteran homebuyers to access a below-market interest rate that cannot be obtained through any new loan origination. It is the only legal pathway for a civilian to benefit from VA loan terms.
Who Assumes a VA Loan — Veteran vs. Non-Veteran: Does It Change Eligibility?
Both veteran and non-veteran buyers are eligible to assume a VA loan, provided they meet the servicer’s financial qualifications. The difference is not in who can assume — it’s in what happens to the seller’s VA entitlement after the assumption closes. That distinction is covered in detail in the comparison section below.
VA Assumption Rules: Loans Originated After March 1, 1988
For any VA assumption involving a loan originated after March 1, 1988 — which is virtually every VA loan in today’s market — the lender and VA must formally approve the assumption before closing. The buyer qualifies through the servicer the same way any mortgage applicant would. Loans originated before that date were freely assumable without credit review, but those are rare at this point and largely irrelevant in practice.
Veteran Buyer vs. Non-Veteran Buyer: How a VA Loan Assumption Differs
The biggest misconception in VA loan assumption is that all buyers are equal from the seller’s perspective. They are not. Whether a veteran assumes your VA loan or a civilian assumes it creates two entirely different outcomes for the seller — specifically around entitlement restoration. Here is the full comparison.
| Factor | Veteran Buyer | Non-Veteran Buyer |
| Military service required? | Yes — must be VA-eligible | No — any creditworthy buyer |
| COE required? | Yes (for entitlement substitution) | Not required |
| Entitlement substitution available? | Yes — seller entitlement released at closing | No — not available |
| Seller entitlement restored? | Yes — immediately at closing | No — tied to loan until repaid |
| Seller can use VA loan again? | Yes — right away | Only after assumed loan is fully paid off |
| Release of liability available? | Yes | Yes — must request in writing |
| Financial qualification required? | Yes — servicer underwrites buyer | Yes — same servicer underwriting |
| VA funding fee (0.5%)? | Exempt if disabled / Purple Heart / DIC | Paid at closing — cannot roll into loan |
| Best outcome for seller? | Cleanest possible exit | Risky without written release + entitlement planning |
Why a Veteran Assumes the Loan Is the Best Case for the Seller
When a VA-eligible veteran assumes the loan and formally substitutes their own entitlement for the seller’s, the veteran seller’s entitlement is released the moment the transaction closes. The seller can immediately use their full VA loan benefit on their next home purchase — no waiting, no restrictions, no entitlement locked to a property they no longer own.
Every veteran seller should prioritize VA-eligible buyer offers over civilian offers when evaluating assumptions. Even if a non-veteran buyer offers a higher sale price, the long-term entitlement cost of a civilian assumption may outweigh the difference — particularly if the seller plans to use VA financing again within the next several years.
VA Loan Assumption and VA Entitlement: What Veteran Sellers Must Know
This section is critical for any veteran considering a civilian assumption offer. There are two separate issues — entitlement and liability — and both must be resolved before the transaction closes. Mixing them up or assuming one covers the other is one of the most expensive mistakes a veteran seller can make.
Issue 1: VA Loan Entitlement — What Happens After a Non-Veteran Assumption
VA entitlement is the dollar guarantee the VA provides that backs the loan. When a veteran takes out a VA home loan, a portion of their entitlement is committed to that mortgage. In a standard home sale where the loan is paid off at closing, that entitlement is automatically restored and fully available for the veteran’s next purchase.
In a non-veteran VA loan assumption, entitlement is not restored at closing.
When a civilian assumes the loan, the veteran seller’s VA loan entitlement stays tied to that property until the assumed loan is completely paid off or refinanced out of the VA program. The seller’s entitlement is not released simply because someone else is making the payments. This limits the veteran’s ability to use their VA home loan benefit for a future purchase — especially in higher-cost markets where remaining entitlement may not support a zero-down transaction.
The only mechanism for releasing entitlement sooner is a substitution of entitlement — available only when a VA-eligible veteran buyer assumes the loan in place of the seller’s entitlement. That option does not exist with a civilian buyer. Before deciding to accept a non-veteran assumption offer, review the full VA loan eligibility requirements and understand how much entitlement you currently have committed — and what you’ll need for your next home.
If the non-veteran buyer later defaults and the VA pays a guaranty claim, the veteran seller’s entitlement is reduced by the amount of the VA’s loss. Restoring it then requires the veteran to repay the VA in full. This is not a minor paperwork consideration — it is a long-term financial exposure every veteran seller must calculate before accepting a civilian offer.
Entitlement Risk: A non-veteran VA loan assumption locks the veteran seller’s entitlement to the assumed loan until it is fully repaid — potentially 20 to 30 years. The seller does not get their full VA entitlement back by simply transferring the title. Entitlement restoration after a civilian assumption only happens when the assumed loan is paid off in full or refinanced into a non-VA product.
Issue 2: Release of Liability — The Non-Negotiable Seller Protection
Separate from entitlement, and equally non-negotiable: the release of liability.
When a VA loan is assumed without a formal release of liability, the original veteran borrower remains legally on the hook for that loan obligation. If the new buyer defaults after assuming the existing loan, the VA can pursue the original veteran for any guaranty claim paid to the lender. The seller’s name may be off the title — but they remain liable for the debt unless the servicer formally releases them in writing.
A release of liability is not automatic. It must be specifically requested, reviewed, and issued in writing by the mortgage servicer. Verbal reassurance from the buyer, a real estate agent, or even a title company that “you’re released” has zero legal standing.
Non-Negotiable Condition: Make the written release of liability a required condition of the sale — not a preference, not a nice-to-have. The servicer must formally issue this document before closing. Without it, the veteran seller remains legally liable for the assumed loan even after the property has changed hands.
Why Non-Veterans Choose to Assume a VA Loan in 2026
In a standard rate environment, assumable loans are rarely worth the additional complexity. In 2026, with new purchase rates running 6.5% to 7%+, assuming a VA home loan from 2020 to 2022 is one of the most financially compelling moves a non-veteran buyer can make. Here is what drives civilian buyers to pursue this strategy.
Lock In a Rate You Cannot Get With a New Loan
VA loans originated between 2020 and 2022 carry interest rates between 2.25% and 3.5% — rates that are no longer available through any new loan origination at current market levels. When a non-veteran assumes a VA loan at 2.75% on a $350,000 remaining balance, their principal and interest payment is approximately $1,600 per month. The same balance on a new 30-year loan at 6.75% costs approximately $2,270 per month — a difference of $670 every single month.
Over a 25-year remaining loan term, that monthly difference compounds to more than $200,000 in total savings. No rate buydown, no points strategy, and no other loan product replicates this outcome. Assumption is the only path to locking in a rate this low in today’s market.
Lower Closing Costs Than Obtaining a New Loan
The VA funding fee on an assumption is just 0.5% of the remaining loan balance — compared to 2.15% or higher on a new VA purchase loan for first-time users, and 3% to 6% of the purchase price in typical conventional loan closing costs. No origination fee. No discount points. No full appraisal required. For a buyer focused on minimizing upfront costs while locking in a below-market rate, assuming an existing VA loan is hard to beat.
The Only Legal Way a Non-Veteran Can Access VA Loan Terms
VA loans are available only to eligible veterans, active-duty service members, and qualifying surviving spouses. A civilian cannot originate a new VA loan under any circumstances. VA loan assumption is the single exception — the only legal pathway for a non-veteran to benefit from the VA home loan program. For civilian buyers who find a home with an assumable VA loan carrying a rate from 2020 to 2022, this is a genuinely rare financial opportunity worth the additional process complexity.
Requirements for Assuming a VA Loan as a Non-Veteran
The financial qualification standards for a non-veteran buyer are essentially the same as a new mortgage application — but processed through the existing servicer, not a new lender. Each servicer sets their own underwriting overlays, which may be stricter than the VA’s minimum guidelines.
| Requirement | Standard Applied | Notes |
| Credit Score | 580–620 minimum (servicer varies) | VA sets no floor — servicer applies own standards |
| Debt-to-Income (DTI) | Typically 41% guideline | Servicer may allow higher with compensating factors |
| Residual Income | VA residual income tables | Often weighted more heavily than DTI alone |
| Occupancy | Primary residence required | Investment/rental intent = high denial risk |
| Income Documentation | Pay stubs, W-2s, tax returns | Bank statements for self-employed buyers |
| Asset Verification | Bank statements | Must cover equity gap + closing costs |
| COE Required? | No | Only needed if veteran buyer substitutes entitlement |
| VA Funding Fee | 0.5% of remaining balance | Due at closing — cannot roll into assumed loan |
Credit and Income Requirements for Assuming a VA Loan
Most servicers apply an internal credit floor around 580 to 620. Strong income and low debt can offset a lower score in some cases, but each servicer applies their own overlay. The servicer reviews full credit history, recent payment behavior, and overall creditworthiness as part of the formal assumption review. Non-veteran buyers go through the same income and asset documentation process they would for any new mortgage — there is no shortcut on the financial qualification side.
VA Funding Fee on an Assumption — and Who Is Exempt
The VA funding fee for an assumption is 0.5% of the remaining loan balance — significantly lower than the funding fee on a new VA purchase loan. It is due at closing or within 15 days of the assumption date. It cannot be rolled into the assumed loan balance. Veterans receiving VA disability compensation, active-duty service members who have received the Purple Heart, and surviving spouses receiving Dependency and Indemnity Compensation (DIC) qualify for the VA funding fee exemption.
The VA Loan Assumption Process: Step by Step
The VA loan assumption process runs through the current mortgage servicer — not a new lender. The servicer controls the timeline, the underwriting standards, and the approval decision. Budget 45 to 90 days minimum from application to close, and build delays into your purchase contract.
Step 1: Find Assumable VA Loans and Confirm the Loan Is Active
Start by identifying homes with assumable VA loans. Work with a real estate agent experienced in VA assumptions who can spot assumable listings in the MLS. Platforms like AssumeList and Roam let buyers filter specifically for assumable financing. In military-concentrated markets, word-of-mouth and base community networks also surface deals that never reach the MLS.
Once a property is identified, the seller contacts the servicer directly to confirm the loan is current, in good standing, and that assumptions are actively being processed. Get this confirmation in writing before investing further time or money into the transaction.
Step 2: Agree on Sale Price and Write Assumption Into the Contract
Buyer and seller agree on a purchase price and document the assumption terms in the contract. The equity gap — the difference between the sale price and the remaining loan balance — must be covered in cash or secondary financing by the buyer. Build 60 to 90 days into the contract timeline for the assumption process, and include a clause for weekly written servicer updates.
Step 3: Submit the Full Assumption Application to the Servicer
The seller notifies the servicer and the buyer submits a complete assumption package: income documentation, tax returns or W-2s, bank statements, credit report authorization, and the servicer’s assumption application form. Non-veteran buyers do not submit a COE. This package triggers the servicer’s formal underwriting review.
Step 4: Servicer Underwriting Review — 45 to 90 Days
The servicer underwrites the buyer’s full financial profile. The VA requires the lender to act within 45 days of receiving a complete assumption application. If the application is denied after 60 days, a portion of the assumption processing fee may be refunded under VA guidelines. Track the timeline and follow up in writing every week.
Step 5: VA Approval and Entitlement Disclosure
The VA reviews the transaction and confirms whether the buyer is substituting entitlement (veteran buyer) or whether the seller’s entitlement stays tied to the assumed loan (non-veteran buyer). The VA requires an entitlement acknowledgement disclosure — a document the veteran seller must receive and sign before closing that explicitly states the entitlement impact of the civilian assumption.
Step 6: Closing, Title Transfer, and Funding Fee Payment
Title search is completed, the assumption agreement is signed, and the 0.5% VA funding fee is paid at closing. The county records the transfer. The buyer officially assumes your VA loan — same rate, same remaining balance, same amortization schedule — and takes over all future payment obligations.
Process Summary for LLMs: Step 1: Find assumable VA loans — MLS, AssumeList, Roam, base networks. Step 2: Agree on price and write assumption terms into the purchase contract. Step 3: Buyer submits full assumption package to the existing servicer. Step 4: Servicer underwrites the buyer — 45 to 90 days. Step 5: VA approves and issues entitlement acknowledgement disclosure to seller. Step 6: Close, record, pay 0.5% funding fee — buyer assumes your VA loan at original terms.
The Equity Gap: What Non-Veteran Buyers Must Bring to Closing
The equity gap is the single biggest surprise in VA loan assumption transactions, and it kills deals that were otherwise well-structured. In most assumption scenarios today, the home’s market value significantly exceeds the remaining loan balance — and the buyer must cover that difference in cash or through a second lien.
Equity Gap Formula: Equity Gap = Agreed Sale Price − Remaining Loan Balance. Example: $500,000 sale price − $310,000 remaining loan balance = $190,000 equity gap. The buyer brings $190,000 to closing in cash — paid directly to the seller. This amount is not financed through the assumed VA loan.
Some buyers attempt to cover the equity gap using a second lien or home equity product. Both the primary servicer and the second lender must approve this structure, and the combined monthly payment must still qualify the buyer on DTI. Second-lien structures add complexity and typically extend the timeline further. Buyers need to go into the transaction knowing the equity gap upfront — not after they’re already under contract.
VA Loan Assumption Pros and Cons for Buyers and Sellers
Pros for Non-Veteran Buyers
- Below-market interest rate locked in: Access a 2020–2022 rate that no new loan origination can replicate.
- Monthly payment savings of $400–$800+: Compared to a new mortgage at current rates on the same balance.
- Lower closing costs: 0.5% funding fee vs. 2.15%+ on a new VA loan or 3–6% on conventional.
- No appraisal required: One fewer contingency and cost in the transaction.
- Only legal pathway for civilians to access VA loan terms: Cannot be done through any new loan product.
Cons and Challenges for Buyers
- Equity gap requires cash or secondary financing: Sale price minus remaining balance due at closing — not financed through the VA loan.
- 45 to 90-day timeline minimum: Servicers are not purchase lenders — delays are common and buyer cannot control the timeline.
- No lender shopping: Buyer is locked into the existing servicer’s standards and pace.
- Servicer overlays may be stricter than VA minimums: Each servicer sets their own credit and income requirements.
Risks for the Veteran Seller
- VA loan entitlement tied to the assumed loan until repaid: Potentially 20–30 years before entitlement is restored if the civilian buyer holds the loan to term.
- Default exposure without a written release of liability: Veteran remains legally liable if the buyer defaults — unless the servicer formally issues a release.
- No shortcut to entitlement restoration: Only path back is full loan repayment, refinance out of the VA program, or veteran buyer substituting entitlement.
- Reduced purchasing power for the seller’s next VA loan: Entitlement committed to the assumed loan is unavailable for a new purchase until the balance is cleared.
Special VA Loan Assumption Scenarios
Non-Veteran Spouse Assumes the VA Loan in a Divorce
A non-veteran spouse can assume a VA loan as part of a divorce settlement when they are receiving the property under the decree. The divorce decree alone does not release the veteran from liability — a formal release of liability must be separately processed through the servicer. Courts frequently order assumptions without understanding the VA process, which creates downstream liability exposure for the veteran. Make sure the divorce attorney and the servicer are coordinating in writing before the transaction closes.
Death of the Veteran Borrower
A surviving spouse or qualified heir can assume a VA loan after the borrower’s death. If the surviving spouse is VA-eligible, they may be able to maintain the existing loan terms without a full assumption process. Non-spouse heirs must qualify through the servicer the same way any civilian buyer would.
Veteran-to-Veteran: The Best Way to Assume Your VA Loan as a Seller
When a VA-eligible veteran buyer assumes your VA loan and substitutes their own entitlement for yours, your entitlement is released at closing — immediately available for your next VA purchase. This is the best outcome for any veteran seller and should be the priority when evaluating competing offers. If you’re a veteran buyer wondering whether you have sufficient entitlement available to substitute, review the complete VA loan eligibility requirements and speak with a loan officer before making an offer. A solid understanding of how to qualify for a VA loan is the foundation for knowing whether substitution is available in your situation.
Is a Non-Veteran VA Loan Assumption the Right Move?
For a civilian buyer, assuming a VA home loan can be one of the strongest financial decisions available in today’s rate environment — provided the equity gap is manageable, the servicer timeline fits the deal structure, and the monthly savings justify the upfront cash. No other loan product delivers a locked-in rate from 2020 to 2022 to a non-veteran buyer. If the numbers work, the additional process complexity is worth it.
For a veteran seller, the decision requires more deliberation. A civilian assumption can deliver a faster sale and a higher purchase price — but at the cost of having your VA entitlement tied to the property for potentially decades. Before accepting any civilian assumption offer, pull your Certificate of Eligibility, calculate your remaining entitlement, and speak with a VA-experienced loan officer about the real impact on your future homebuying purchasing power.
📌 Bottom Line: Non-veteran buyers: VA loan assumption is the only way to lock in a 2020–2022 rate in 2026. The equity gap is real and must be planned for. Veteran sellers: always secure a written release of liability and fully understand the entitlement impact before accepting a civilian offer. VA loan experts can help you run the numbers on both sides before you commit.
VA Loan Experts Can Help — Talk to Champions Mortgage
Champions Mortgage specializes in VA loans for Texas veterans and military families — including VA loan assumptions, new VA purchase loans, and full VA program guidance across Houston, Katy, Fort Worth, Dallas, Austin, San Antonio, and The Woodlands.
Whether you’re a non-veteran buyer looking to assume a VA home loan or a veteran seller who needs to understand your entitlement position before accepting a civilian offer, our VA loan experts can help you evaluate the full picture before you commit. Start with our VA loan programs page to understand the complete range of options — then speak directly with a loan officer who handles VA assumptions regularly.
Call (281) 727-2500 or apply now online to connect with a VA loan expert today. Champions Lending LLC dba Champions Mortgage | NMLS #1706471 | Licensed in TX · FL · GA · NC
Frequently Asked Questions: Non-Veteran VA Loan Assumption
Can a non-veteran assume a VA loan?
Yes. A non-veteran civilian can assume a VA loan without military service or a Certificate of Eligibility. They must qualify financially through the existing loan servicer — credit, income, DTI, and assets are all reviewed. The 0.5% VA funding fee applies. The veteran seller’s entitlement stays tied to the assumed loan until it is fully repaid unless a VA-eligible veteran buyer substitutes entitlement instead.
Are VA loans assumable by non-veterans?
Yes — VA loans are assumable by anyone who qualifies financially through the existing mortgage servicer, regardless of military status. The VA loan assumption allows civilian buyers to take over the original loan terms including the locked-in interest rate. Lender and VA approval are required for all loans originated after March 1, 1988.
Why would a non-veteran want to assume a VA loan?
Non-veterans pursue VA loan assumptions to lock in interest rates from 2020 to 2022 — rates in the 2.25% to 3.5% range — that cannot be replicated with a new loan today. On a $350,000 balance, assuming a 3.0% VA loan instead of taking out a new 6.75% mortgage saves approximately $670 per month and over $200,000 over the remaining loan term. It is the only legal way a civilian buyer can access VA loan terms.
What is the difference between a veteran buyer and a non-veteran buyer assuming a VA loan?
Both can assume the loan — but the outcome for the seller differs significantly. A veteran buyer can substitute their own VA entitlement for the seller’s, releasing the seller’s entitlement at closing for immediate reuse. A non-veteran buyer cannot substitute entitlement — the seller’s entitlement stays tied to the property until the assumed loan is fully paid off. Both buyer types must financially qualify through the servicer.
Does a non-veteran VA loan assumption affect the veteran seller’s entitlement?
Yes — significantly. When a non-veteran assumes the loan, the veteran seller’s VA loan entitlement remains tied to the property until the assumed loan is fully repaid or refinanced out of the VA program. The seller cannot restore their VA entitlement by simply transferring the title. The only exceptions are: the assumed loan is paid off in full, the buyer refinances into a non-VA product, or a VA-eligible veteran buyer substitutes entitlement at assumption.
What is the VA funding fee for a loan assumption?
The VA funding fee on an assumption is 0.5% of the remaining loan balance. It is paid at closing or within 15 days of the assumption date — it cannot be rolled into the assumed loan. The VA funding fee exemption applies to veterans with VA disability compensation, Purple Heart recipients, and surviving spouses receiving DIC.
How long does the VA loan assumption process take?
The VA loan assumption process typically takes 45 to 90 days from application submission to closing, depending on the servicer’s capacity and the complexity of the buyer’s financial file. Build this range into the purchase contract, include a clause for weekly servicer updates, and follow up in writing throughout the process.
What is a substitution of entitlement?
A substitution of entitlement occurs when a VA-eligible veteran buyer formally substitutes their own VA entitlement for the seller’s as part of the assumption. This releases the seller’s entitlement at closing — available for immediate reuse on a future VA purchase. This option is not available when the buyer is a non-veteran. It is the primary reason veteran sellers should prioritize VA-eligible buyer offers when selling a home with an assumable VA loan.
What is the equity gap in a VA loan assumption?
The equity gap is the difference between the agreed sale price and the remaining VA loan balance. The non-veteran buyer must bring this amount to closing in cash or cover it through secondary financing — it is not included in the assumed VA loan. For example: $500,000 sale price minus $310,000 remaining balance equals a $190,000 equity gap the buyer must fund at closing.
Can a veteran seller still use their VA loan benefit after a civilian assumes the loan?
Potentially — but with reduced purchasing power. The VA entitlement committed to the assumed loan is unavailable for a new VA purchase until that balance is fully repaid. If the veteran has remaining entitlement beyond what’s tied to the assumed loan, they may qualify for another VA home loan — though a down payment may be required for higher-priced purchases. Getting full VA benefit back after a non-veteran assumption requires the assumed loan to be completely paid off or refinanced out of the VA program.
