Busting the Biggest Myths About Assumable Loans

💡 Why This Matters

In today’s shifting market, assumable loans have become one of the most powerful ways to buy and sell homes. Yet, misinformation still keeps many buyers and sellers from taking advantage of this unique option. Below, we break down — and bust — the five most common myths about assumable loans, so you can make informed decisions and save thousands.

🔹 Myth 1: Assumptions Take 4–6 Months to Get Approved

The Truth: Both the Department of Veterans Affairs (VA) and the Department of Housing and Urban Development (HUD) require lenders to process an assumption within 45 days of receiving the buyer’s completed application. In practice, most assumptions now close in just 45–60 days — often no longer than a traditional mortgage.

🔹 Myth 2: Assumptions Are Bad for Sellers

The Truth: Marketing your home’s low-rate assumable mortgage is actually in the seller’s best interest. Listings advertised as “assumable” generate more buyer inquiries, get more open house traffic, sell faster, and often receive higher offers — netting the seller more money.

🔹 Myth 3: VA Loans Can Only Be Assumed by Veterans

The Truth: VA loans are assumable by any qualified buyer, including non-veterans and even investors. The only requirement is that the seller agrees to leave their VA benefits with the home to complete the assumption. This opens up a larger pool of buyers and makes VA-financed homes even more attractive.

🔹 Myth 4: Sellers Are Liable for the Loan if the Buyer Defaults

The Truth: When an assumption is approved, the mortgage responsibility is fully transferred to the buyer. Sellers receive a formal release of liability and are never at risk if the new buyer defaults. This means your credit stays safe and your responsibility ends at closing.

🔹 Myth 5: Veterans Never Leave Their VA Entitlement

The Truth: In reality, 20–30% of veterans leave their VA entitlement with the home when they sell. It’s a common practice that enables the buyer to assume the VA loan. With proper guidance from a knowledgeable agent, both the seller and the buyer can navigate this process smoothly and decide what’s best for them.

🌟 Why Work With a Local Assumable Loan Expert

Assumable loans — especially VA and FHA — can save buyers hundreds per month and tens of thousands over the life of the loan. For sellers, advertising a low-rate assumable mortgage can mean faster offers and higher net proceeds.

At SoCal Realty & Investments, we’re the local experts on VA, FHA, and other assumable loans. Our team has specialized training and tools to:

• Identify homes with assumable mortgages

• Guide sellers and buyers through the assumption process

• Explain entitlements, liabilities, and timelines

• Handle paperwork with lenders and servicers

We even offer a search tool that shows you which homes currently have assumable loans so you can see opportunities instantly.

🚀 Take the Next Step

Whether you’re buying or selling, don’t miss the chance to leverage today’s low-rate assumable loans. Contact us to learn how an assumption can work for you or to get access to our Assumable Loan Search Tool. - https://www.socalrealtyandinvestments.com/assumable-loans

Andrew Georgitsis SoCal Realty & Investments DRE#02266192 866-322-5487 www.socalrealtyandinvestments.com