Assumable VA & FHA Loan Opportunities Buyers Haven’t Heard About

Assumable mortgages aren’t new, but many buyers and sellers don’t realize low rates under 4% can still transfer, creating major savings and strong demand.

Many buyers today assume their only option is to take out a new mortgage at rates of 6% or higher. What often goes unnoticed is that some sellers still hold VA or FHA loans with interest rates below 4%, and under the right conditions, those loans can be assumed by qualified buyers.

The impact can be substantial. In some cases, assuming a low-rate loan can reduce monthly payments by more than $1,000 compared to today’s market rates.

A Real-World Example

I recently saw this firsthand in a neighborhood where homes were selling between $600,000 and $700,000. Several properties sat on the market, but one sold in just two days and for a higher price than the rest.

The difference wasn’t the location or condition of the home. The seller had a VA loan at 2.99%, and the buyer—also a veteran—was able to assume it. That single feature made the home far more affordable and immediately set it apart from competing listings.

Why This Matters for Sellers

If you have a VA or FHA loan with a low interest rate, that loan may be one of your strongest selling advantages. Buyers today are focused on affordability, and a lower monthly payment can open the door for buyers who might not otherwise qualify.

“Assumable VA and FHA loans are often overlooked, yet they remain one of the most powerful tools for both buyers and sellers.”

The Numbers Tell the Story

To put this into perspective, a $400,000 loan at 3% carries a monthly payment of roughly $1,686. At today’s rates near 6.75%, that payment jumps to around $2,600. That difference adds up to nearly $1,000 per month, or more than $300,000 over the life of the loan.

The Challenge with Finding These Homes

Most listing platforms—including Zillow, Realtor.com, and even the MLS—do not display what type of loan is attached to a property. As a result, assumable loan opportunities are easy to miss.

To solve this, my team has compiled a list of active homes in our area with VA or FHA loans at 4% or lower. If you’re selling, we can help you leverage this feature. If you’re buying, we can help identify homes where assuming a loan may be possible.

What to Know Before Assuming a Loan

VA and FHA loans have been assumable since 1989, yet many homeowners and agents overlook them. The process typically requires additional coordination with lenders and may take longer to close, but in many cases, the long-term savings outweigh the extra effort.

If you’re a seller with a low-rate VA or FHA loan, or a buyer interested in exploring this option, I’d be happy to help you understand how it works and whether it makes sense for your situation.

You can call or text 910-218-8879 or email buddy@buddyblake.com to get started.