Military Families: Assume a VA Loan at 2-3% Rates
VA loans are assumable by law. That means a buyer can take over the seller's loan balance, terms, and interest rate. The lender is involved the entire time. It's fully legal, fully above board, and it saves buyers $800 to $1,200 per month compared to today's rates.
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We track every VA assumable near Colorado military bases
The VA Advantage
A VA assumable mortgage allows a buyer — veteran or non-veteran — to take over a seller's existing VA home loan, including the interest rate, remaining balance, and loan terms, with lender approval. Every VA loan written in the last several decades is assumable by law. It's baked into the loan documents. Non-veterans can assume VA loans too — no military service is required for the buyer.
About 10-20% of VA sellers are open to letting a non-veteran buyer assume their loan. We call them "hand raisers." We maintain a private list of these sellers across the Colorado Front Range. You won't find this on Zillow.
VA assumptions come with some serious perks beyond the rate. No PMI, ever. That alone saves $200 to $400 per month on a typical Colorado home. Rates on our current VA inventory go as low as 2.25%. And the lender is involved the whole way, so everything stays clean and legal. This is not "subject-to."
Run the Numbers
Let me show you what it looks like on a $500K home. Same property, two completely different financial outcomes.
| New Loan @ 6.80% | VA Assumed @ 3.25% | |
|---|---|---|
| Monthly Payment (P&I) | $3,260 | $2,176 |
| Monthly Savings | baseline | $1,084/mo |
| Annual Savings | baseline | $13,008/yr |
| First 5 Years Interest | $165,000 | $77,000 |
| Lifetime Interest Savings | baseline | ~$390,000 |
What would you do with an extra $13K a year? Run your own numbers with our calculator.
Colorado Military Bases
PCS sellers are prime assumption candidates. They bought at 2-3% rates, they're moving on orders, and many would rather have a smooth assumption close than deal with traditional sale headaches. We track every assumable listing near these installations.
Fort Carson
The biggest military installation on the Front Range. PCS moves create a steady flow of VA sellers looking for qualified assumption buyers. We track every assumable listing near post.
Peterson SFB
Space Force and NORAD families PCSing out often prefer assumptions over traditional sales. Faster closings, no appraisal drama, and the buyer gets a killer rate.
Schriever SFB
Space operations personnel rotate frequently. Many bought at 2-3% rates in 2020-2022 and are open to assumption offers when PCS orders come through.
Buckley SFB
Aurora and the surrounding Denver metro area have hundreds of VA loans from the low-rate era. Buckley families moving out are prime assumption candidates.
VA Entitlement: What Happens to the Seller's?
This is the part that confuses a lot of people (and a lot of agents, if I'm being real). So let me break it down simply.
Scenario 1: Buyer is a Veteran
If the buyer has their own VA entitlement, they can substitute it for the seller's. The seller gets their entitlement back immediately. Clean swap. The buyer now has a VA loan in their name at the original rate. Both parties walk away happy.
Scenario 2: Buyer is Not a Veteran
The seller's entitlement stays tied to the property until the loan is paid off. But the seller doesn't lose all their buying power. VA entitlement is based on county loan limits. Example: El Paso County limit is $806,500. If the original loan was $350K, the seller retains $456,500 in remaining entitlement. Enough for another purchase.
One-Time Restoration
Veterans also have a one-time restoration option. If the assumed loan gets paid off (buyer refinances or sells), the seller can apply for a one-time entitlement restoration. This is separate from the substitution path and gives sellers another way to get their full entitlement back.
Don't get too bogged down in this. We walk every seller and buyer through the entitlement math during the process. Sellers: learn more about your options.
Real Buyers. Real Savings.
Here's what our clients are doing with VA assumable mortgages
“Jeremy put $15K down on a $385K home at 2.65%. His payment is $943/month less than his neighbor who bought the same month at market rate.”
“Non-veteran, assumed a VA loan in Colorado Springs. $18K down on a $420K home. 2.99% rate. I asked Ryan: is this real? It really is.”
“First-time buyer on a $65K salary. Assumed a VA loan in Colorado Springs. Payment is under market from day one. I didn't think I could afford a house out here.”
VA Assumption FAQ
Can non-veterans assume VA loans?
Yes. VA loans are assumable by anyone, veteran or not. The seller's VA entitlement stays with the property until the loan is paid off or the buyer (if they're a veteran) substitutes their own entitlement. About 10-20% of VA sellers say yes to non-veteran assumptions.
What is the equity gap and how do I cover it?
The equity gap is the difference between the home's value and the remaining loan balance. If a home is worth $500K and the loan balance is $400K, you need to cover $100K. Options: cash, gift funds, HELOC on another property, or a second mortgage through our partner lender (as little as 5% down on the gap).
How long does a VA assumption take?
Plan for 45-90 days. Some servicers can close in 30. It's longer than a traditional purchase, but the rate savings more than make up for the wait. We use assumption processors who know how to push things through efficiently.
Does the seller lose their VA entitlement?
It depends. If the buyer is a veteran and substitutes their entitlement, the seller gets theirs back immediately. If the buyer is not a veteran, the seller's entitlement stays tied to the property until the loan is paid off. But the seller retains partial entitlement based on the county loan limit minus the original loan amount.
Is there a credit score minimum for VA assumptions?
There's no hard minimum credit score. The lender looks at the reason behind your score, not just the number. Late payments from a medical emergency are treated differently than chronic overspending. A soft credit pull during pre-qualification won't impact your score.
What are the closing costs?
Expect $5,000 to $10,000 in closing costs, plus the assumption processor fee (around $750 per side or 1% of purchase price). Still far less than what you'd pay in extra interest on a 6.5%+ conventional loan.
Do I need to live in the home?
If the seller leaves their VA entitlement with the property and you're not substituting your own, there's no VA occupancy requirement for you. You could use it as an investment property immediately. If you're a veteran substituting entitlement, you need to move in within 60 days.
Got more questions? Read our blog or check out the full assumable mortgage guide.
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