howtorealestatelikeaboss.com  Assuming a VA loan can be a convenient and cost-effective way for veterans to finance a new home. By assuming a loan, the buyer can take over an existing mortgage when buying a home. Loan assumption can have numerous advantages for the buyer and seller, and is considered an often overlooked VA benefit. Here are some major reasons to consider assuming a VA loan rather than applying for a new one:

You'll Streamline the Application Process

Applying for a mortgage, whether it's one from the VA or a conventional loan, requires a few steps, and there are expenses attached. Appraisal fees, and possible private mortgage insurance fees are examples of costs you can expect when applying for a new loan. When assuming a loan, you skip the multiple steps and expenses of the application process, saving you time, effort and money.

You Might Keep a Lower Interest Rate

Here's the BIG advantage--depending on when the original VA loan was approved, you might be able to get a much lower interest rate than you would with a new loan. Even a percentage difference in interest rates can mean thousands of dollars saved over the life of your mortgage. The opportunity to assume a VA loan with a lower rate is an excellent benefit to consider.

You Can Pay a Lower Funding Fee

Funding fees are mandatory when applying for VA loans (veterans with disabilities can be exempt, contact me to chat one-on-one aobut this). Most veteran borrowers pay an average (key word average) of 2% of the home's purchase price for the funding fee. However, the funding fee for assuming an existing VA loan is much smaller--sometimes as low as 0.05%. The savings from a smaller funding fee is another great benefit of assumming a VA loan.

Contact me today, I'll help you carefully navigate the home selling and buying process. Got questions? Feel free to email me today [email protected] to get your real estate questions answered! 

Schandale Kornegay, Realtor in Maryland including, but not limited to the following counties: Prince George's, Charles, Anne Arundel, Montgomery, Saint Mary's, Calvert, Howard, Frederick, and Baltimore City/County.