Assumable VA & FHA Loans: The Opportunity Buyers Haven't Heard About
Most buyers today believe their only option is a brand-new mortgage at today's rates. The 30-year fixed averaged 7.03% as of late September 2026, according to Freddie Mac. What many buyers don't realize is that some sellers still have VA or FHA loans locked in below 4%, and under the right conditions a qualified buyer can assume those loans.
Assumable mortgages aren't new. But most people, including plenty of agents, have never used one. For the right home, the difference can be close to $1,000 a month.
The Home That Sold in Two Days
I saw this play out in a neighborhood where homes were selling between $600,000 and $700,000. There were plenty of houses on the market, but one stood out. It sold in just two days, and for a higher price than the others.
The reason wasn't location or condition. The seller had a VA loan at 2.99%, and the buyer, also a veteran, was able to assume it. That loan made the house far more affordable than anything else on the street and gave it a clear edge over the competition.
The Payment Math at Today's Rates
To put it in perspective, here is a $400,000 loan run through the standard 30-year principal-and-interest formula, rounded to the dollar:
- At 2.99%: about $1,684 a month
- At 7.03%: about $2,669 a month
- Difference: about $985 a month, or roughly $354,600 over a full 30 years
Those figures are principal and interest only, before taxes and insurance. In real life, an assumed loan usually has fewer years left and a lower balance than the original, so the exact savings depend on the loan. But the gap between a sub-4% rate and today's rates is big enough to change what a buyer can afford.
Lender approval. The buyer has to qualify, and the lender or servicer has to approve the assumption. It takes more coordination and can mean a longer closing.
Cash for the seller's equity. The buyer takes over the remaining balance, not the full price. The difference between the price and that balance has to be covered in cash or with separate financing.
VA entitlement. If a veteran seller's VA loan is assumed by a buyer who doesn't substitute their own VA entitlement, the seller's entitlement generally stays tied to that loan until it's paid off, which can affect their next VA purchase. When the buyer is an eligible veteran who substitutes entitlement, the seller's can be restored.
For Sellers: Your Loan May Be Your Best Feature
If you have a VA or FHA loan with a low rate, it could be the feature that helps you sell faster and for more money. Buyers are focused on affordability, and a lower monthly payment can open the door for buyers who wouldn't qualify otherwise.
The challenge is that listing sites like Zillow and Realtor.com, and even the MLS, don't show what kind of loan is attached to a property. If nobody tells buyers, they'll never know. That's where your marketing and your agent come in, along with a clear plan for the equity and entitlement questions above.
For Buyers: How to Find These Homes
Because the loan type isn't listed, these homes are hard to find on your own. My team has compiled lists of active homes in our area with VA or FHA loans at 4% or lower, and we can help you look for the ones where an assumption might work and whether you'd qualify. You can also start browsing homes for sale in Wilmington.
Worth the Extra Effort
Assumable VA and FHA loans are overlooked, yet they remain one of the most powerful tools for both buyers and sellers. The process takes more coordination, but for the right home the benefits can far outweigh the extra effort.
If you're a seller with one of these loans, I can help you understand how to use it to your advantage. If you're a buyer, my team can help you figure out which homes may qualify. Call or text (910) 395-1000, or see what your home is worth.
