Can Non-Veterans Assume a VA Loan? Yes. Here's How.

This is one of the most common misconceptions I run into: "Only veterans can assume VA loans." Completely wrong. Non-veterans can assume VA loans, and it opens up a massive pool of properties with incredible rates.

Let me clear up how this works.

The Basics

A VA loan assumption transfers the existing VA mortgage from the seller to the buyer. The buyer takes over the rate, balance, and terms. The lender reviews the buyer's qualifications and approves the transfer.

The VA does not require the buyer to be a veteran. Any buyer who meets the lender's credit and income requirements can assume a VA loan.

The Entitlement Issue

Here's the part that makes it more nuanced. When a non-veteran assumes a VA loan, the seller's VA entitlement stays tied to that loan. It doesn't transfer to the buyer. It stays in place until the assumed loan is paid off, refinanced, or otherwise discharged.

What does that mean for the seller? They can't use that VA entitlement for another home purchase until the situation is resolved. If they have bonus entitlement or if they've already purchased another home without VA financing, this might not matter. But for many veterans, their entitlement is important for future use.

When a veteran buyer assumes the loan, they can substitute their own VA entitlement. This releases the seller's entitlement immediately. That's why veteran buyers are generally preferred by VA sellers.

Finding Willing Sellers

About 10-20% of VA sellers are what I call "hand raisers." They're willing to sell to a non-veteran buyer, entitlement consideration and all. Here's why some sellers are okay with it:

• **They already have another home** and don't plan to use VA financing again
• **They have bonus/restored entitlement** and the tied-up entitlement doesn't limit them
• **The price is right.** A higher offer can compensate for the entitlement inconvenience
• **They want to sell quickly** and an assumable mortgage attracts more buyers
• **They understand the math** and see how it benefits both parties

The other 80-90%? They either don't know their loan is assumable, or their listing agent has steered them away from it. That's not always a dead end. Sometimes education and a strong offer change the conversation.

How to Make Your Offer Attractive

As a non-veteran assuming a VA loan, you need to make the seller feel good about the deal. A few strategies:

1. Offer full asking price or above. The seller's low rate is adding value to the transaction. Acknowledge that with your offer price.

2. Show proof of funds for the equity gap. Sellers worry about deals falling through. Show you can close.

3. Include a realistic timeline. 60-75 days is reasonable. Don't promise 30 and then miss it.

4. Let the seller know you understand entitlement. Acknowledge the entitlement stays tied and explain that you plan to hold the property long-term (or specify when you'd refinance).

5. Waive unnecessary contingencies. If you can, waive the appraisal contingency or other non-essential conditions.

The Qualification Process

As a non-veteran, you still need to meet the VA's qualification standards:

• Creditworthiness (no minimum score, but clean recent history preferred)
• Income sufficient to support the payment
• DTI ratio under 41% (with some flexibility)
• Stable employment

The servicer reviews your application just like they would for a veteran. The process is identical. The only difference is what happens to the seller's entitlement.

Costs for Non-Veterans

There's an additional consideration: VA loans normally have a funding fee. For assumptions by non-veterans, the assumption fee is relatively small ($300-$500), but you should also budget for the standard closing costs.

The savings on the monthly payment far outweigh any marginal cost differences. On a $400K loan, even a slightly higher closing cost is recouped in the first month of payment savings.

Real Talk About Success Rates

I want to be transparent about this. Non-veteran VA assumptions are harder to make happen because of the seller/entitlement dynamic. Not impossible, but harder.

Chances of success for a non-veteran are lower than for a veteran buyer. I'd say about 20% of attempts result in a closed deal when the buyer is a non-veteran. That's mostly because of seller resistance, not buyer qualification issues.

But 20% is not zero. And with over 400+ VA assumable listings in Colorado, even a 20% success rate gives you 80+ potential deals. It's a numbers game. You make offers on the right properties, and the math eventually works out.

If You're a Veteran

If you ARE a veteran: you're in the best position possible. You can assume any VA loan, substitute your entitlement to make the seller happy, and lock in a rate that's 4+ points below today's market. If you have VA eligibility and you're buying a home, you should absolutely be looking at VA assumptions first.

The Opportunity Is Real

Non-veterans assuming VA loans is not some loophole or hack. It's explicitly allowed by VA guidelines. The law says these loans are assumable by any qualified buyer. The opportunity exists. The savings are massive. You just need to find a willing seller and put together a strong offer.