VA loan assumptions jumped 600 percent in one year. But three myths are costing Phoenix Valley buyers and sellers thousands.
Myth one: Only veterans can assume a VA loan. False. Any creditworthy buyer can. But if that buyer isn't a veteran, the seller's entitlement stays locked to the property until the loan is paid off or refinanced.
Myth two: The buyer just covers closing costs. Wrong. If a home sells for $1 million and the loan balance is $500,000, the buyer assumes that $500,000 at the original rate but still owes the other $500,000 in cash or a second loan. That equity gap kills more deals than anything else.
Myth three: The VA's 45 day rule means 45 days. Recent assumptions in our market closed in 9 and 14 months. Banks make money originating loans, not processing assumptions, so these departments stay thin. One missing signature restarts the entire file.
The premium can be real. One seller got $30,000 over market value because no appraisal was required. But the timeline, the gap, and the entitlement risk have to be clear before anyone commits.
I'll walk you through the real numbers before you sign anything. DM me directly and I will get back to you within the hour.
