Assumable VA & FHA Loan Opportunities Buyers Haven’t Heard About

By Buddy Blake

Buddy Blake is a renowned real estate expert in Wilmington, North Carolina, known for his commitment to delivering exceptional service and his deep-rooted connection to the community. With decades of experience, Buddy has become a trusted name for homeowners, businesses, and local families.

Most buyers today believe their only option is to get a new mortgage at 6% or higher. However, many don’t realize that some sellers still have VA or FHA loans locked in at rates below 4%. Under the right conditions, those loans can be assumed by a qualified buyer. The impact of this is significant. For some homes, it can mean saving more than $1,000 a month compared to current interest rates.

My personal experience. I recently came across this in a neighborhood where homes were selling for between $600,000 and $700,000. Many houses were on the market, but one stood out. It sold in just two days and for a higher price than the others. The reason was not the location or the condition of the home. The seller had a VA loan at 2.99%, and the buyer, who was also a veteran, was able to assume it. That loan made the house much more affordable and gave it a clear advantage over the competition.

For sellers, this can be a major benefit. If you have a VA or FHA loan with a low rate, it could be the feature that helps you sell faster and for more money. Buyers are focused on affordability, and a lower monthly payment can open the door for many who would not qualify otherwise.

To put this in perspective, a $400,000 loan at 3% has a monthly payment of about $1,686. At today’s rate of 6.75%, the payment is closer to $2,600. That is nearly a $1,000 difference each month, or more than $300,000 saved over the life of the loan.

The challenge is that listing sites such as Zillow, Realtor.com, or even the MLS do not show what kind of loan is attached to a property. To address this, my team compiled a list of all active homes in our area with VA or FHA loans at 4% or lower. If you’re selling, we can show you how to leverage this. If you are buying, we can help you identify the homes where this option is available.

VA and FHA loans have been assumable since 1989, but many agents and homeowners overlook them. The process takes more coordination with lenders and sometimes a longer closing, but the benefits can outweigh the extra effort.

If you are a seller with one of these loans, I can help you understand how to use it to your advantage. If you are a buyer, I can help you determine which homes qualify, allowing you to lower your costs. Call or text me at 910-218-8879 or email buddy@buddyblake.com to get started.