Ken Crotts & Company Call or text Ken206-487-7900
FHA & VA LOANS

Your low rate can sell your home.

Every FHA and VA loan is assumable. The next buyer can take over your loan at your rate, often hundreds of dollars a month less than a new loan, and that can make your home the one buyers compete for.

15-minute webinar. Presented with an AI-generated likeness and voice of Ken Crotts, created with his consent.

Free assumable loan review

15 minutes. We look at your rate, balance and loan company, and tell you whether your loan is a real selling advantage. No cost, no obligation.

Prefer to pick a time? Book a 15-minute call
Federal rules, not loopholes

What most sellers never hear

Any qualified buyerA non-veteran can assume a VA loan if they qualify on credit and income.
You're releasedWhen the assumption is approved, the seller is released from liability.
Loan companies have deadlines45 days to decide (or 35 to send to VA), and VA can cut its guaranty to $0 for refusals.
VA Form 26-8978, Rights of VA Loan Borrowers, with the assumable loan paragraph highlighted
VA Form 26-8978: creditworthy buyers can assume, and the seller is released from liability.
VA Circular 26-23-27 with the paragraph on reducing the guaranty to $0 highlighted
VA Circular 26-23-27 (Dec. 20, 2023): VA can reduce its guaranty to $0 when a loan company won't process an assumption.
How it works

Five steps from listing to release

  1. We price and market your home with the loan as a featured advantage.
  2. You accept an offer from a buyer who wants to assume.
  3. The buyer applies with your loan company, which reviews credit and income.
  4. The loan company approves the buyer. For some VA loans, the file goes to VA.
  5. You close. The home and the loan transfer, and you're released from liability.
Is my loan a selling advantage?
Quick answers

FHA and VA assumption questions

Can a non-veteran assume a VA loan?

Yes. Any creditworthy buyer approved by the loan holder or VA can assume a VA loan, including a non-veteran (VA Form 26-8978).

Is the seller released from liability after an assumption?

Yes. Once the assumption is approved and the buyer takes on the liability, the seller is released (VA Form 26-8978). On FHA loans, the lender approves the buyer and releases the seller on a HUD form.

Can my loan company refuse to process an assumption?

Not if the buyer meets VA's requirements. Under VA Circular 26-23-27 (Dec. 20, 2023), VA can reduce its guaranty on the loan to $0 when a holder fails to comply.

How long does a VA loan assumption take?

A servicer with automatic authority must decide within 45 days of a complete package; one without it must send the file to VA within 35 days. Our partners see most assumptions close in about 30 to 60 days.

What happens to my VA entitlement?

If the buyer is an eligible veteran who substitutes their entitlement, yours is restored. If not, it stays tied to the loan until it is paid off. Selling veterans sign VA Form 26-10291.

Are FHA loans assumable?

Yes. FHA-insured mortgages are assumable when the buyer is approved.

Who pays the assumption fees?

What the loan company can charge is capped by federal rules. The separate assumption service fee is paid by the buyer in our transactions. Current figures are given at your consultation.

Ken Crotts
Why it takes a team

Ken Crotts & Company

40years in real estate
215+bank-negotiated transactions

Few agents know how to price an assumable home, market it, structure the buyer's cash, protect a veteran's entitlement and hold a loan company to its deadlines, all at once. That's what our team does, with our partners at AssumeList, across Pierce, King and Thurston counties.

We don't push every seller into an assumption. For some homes a traditional sale is better, and we'll show you the numbers for both.

Your loan may be the best thing about your home.

Let's find out. Free 15-minute review, no obligation.

Get my free loan review

or call or text 206-487-7900