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The VanguardEpique Realty

VA Assumption Buyer

The equity and funding gap

The difference between the price and the remaining balance still has to be addressed.

7 minute read

Where complexity enters

  • A qualified buyer assumes the remaining balance of the VA-guaranteed loan, not the purchase price. The difference is the seller's equity.
  • VA generally does not prohibit a second loan used alongside an assumption, but it must stay behind the VA-guaranteed loan, and the servicer must document it and confirm VA requirements are met.
  • A second loan is weighed when the servicer reviews the buyer, and approval is never assured. Confirm options with the servicer and a lender before an offer relies on them.

Source: VA Form 26-10291: Assumption Entitlement Acknowledgment; VA Circular 26-24-17: Secondary Borrowing on Assumption Transactions

Sources

Official material this lesson draws on. Vanguard's explanation is educational; current official requirements govern.

Educational context matters. Loan assumptions depend on the specific loan, servicer review, buyer qualification, current VA guidance, and the facts of the transaction. Verify details with qualified professionals.