The Gist on VA Assumptions

Are you curious about VA loan assumptions and how they might impact your real estate transactions? Here’s what you need to know as you prepare for the spring market:

Extended Timeline: Unlike conventional transactions that typically take around 30 days to close, VA loan assumptions can significantly extend the timeline. Based on my experience, these deals can range from 90 to 135 days, amounting to approximately 4.5 months under contract.
Flexibility is Key: Both buyers and sellers must be prepared to demonstrate flexibility throughout the assumption process. Sellers, in particular, may need to wait longer to receive payment, as they only get paid once the deal officially closes.

Incentivizing the Seller: Given the prolonged waiting period for sellers, buyers should be prepared to incentivize them to agree to the assumption. This could involve offering a higher sales price or reducing contingencies to sweeten the deal.

Educating Clients: Many agents may not have experience with VA loan assumptions, so it’s crucial to educate both buyers and sellers about the process. Buyers should understand that they stand to benefit the most from the assumption, while sellers need to see tangible incentives for waiting.

If you’re an agent navigating a VA loan assumption for your clients and have questions or need guidance, don’t hesitate to reach out. I’m more than happy to share my insights and experiences to help you navigate this unique aspect of real estate transactions.