A VA loan is one of the most valuable benefits a veteran or active service member can use, and most people only know half of what it can do. Here’s a clear look at the advantages, including one that could make your home far easier to sell years from now.

You can finance up to 100% of the purchase price. A VA loan allows eligible borrowers to buy a home with no down payment, which removes the single biggest barrier most buyers face.

The interest rates are highly competitive. VA loan rates are typically very strong, often better than FHA, because the loan is backed by the Department of Veterans Affairs.

There is no monthly mortgage insurance. Unlike FHA and most low-down-payment conventional loans, a VA loan has no monthly mortgage insurance, which keeps your payment lower for the life of the loan.

The advantage no one talks about: VA loans are assumable. This is the hidden gem. A qualified buyer can take over, or assume, your existing VA loan, including its interest rate. In a higher-rate market, a home with an assumable low-rate loan attached to it is far more attractive than the one next door.

Think about the long game. If you buy today and rates are higher when you eventually sell, that low, assumable rate becomes a genuine selling tool. A buyer who can step into your rate has a real reason to choose your home. One note: because you generally cannot hold two VA loans at once, you would arrange your own financing before letting someone assume yours.

VA loans have specific eligibility and occupancy rules, and assumption has its own requirements, so it’s worth talking through your situation with someone who knows the program.

California Home Solution is a veteran-owned brokerage in Woodland Hills, and we’re proud to help fellow veterans make the most of their benefits. Call 818-999-6070 with any questions.

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Frequently Asked Questions

Are VA loans assumable?

Yes. A VA loan can be assumed by a qualified buyer, including its interest rate, subject to lender and VA approval. In a higher-rate market, this makes a veteran’s home easier to sell.

Do VA loans require a down payment?

No. A VA loan allows eligible borrowers to finance up to 100% of the purchase price with no down payment.

Do VA loans have monthly mortgage insurance?

No. VA loans have no monthly mortgage insurance, which keeps the monthly payment lower than FHA or most low-down-payment conventional loans.

Can I have two VA loans at the same time?

Generally no. Because you typically cannot hold two VA loans at once, you would arrange your own financing before letting a buyer assume your existing VA loan.

Manny Solana
California Home Solution, Inc.
NMLS #260091 | DRE #01303675
20301 Ventura Blvd, Suite 302
Woodland Hills, CA 91364
818-999-6070 | manny@cahomesolution.com
Helping California homeowners since 2000.