$300,000 Loan — Monthly Payment Comparison
The seller's original 3% rate stays with the loan — not with the seller. When you assume the mortgage, you pay at 3% for the remaining term. The seller's outstanding balance becomes your loan balance.
VA loans: Fully assumable. Any buyer can assume a VA loan — you do not have to be a veteran. However, if a non-veteran assumes the seller's VA loan, the seller's VA entitlement stays tied up until the loan is paid off or refinanced. Veteran buyers assuming another veteran's loan can potentially restore the seller's entitlement through substitution of entitlement.
FHA loans: Fully assumable. Any creditworthy buyer can assume an FHA loan regardless of veteran status. The new buyer still goes through a qualification process with the lender.
Conventional loans: Not assumable. Almost all conventional Fannie Mae and Freddie Mac loans have due-on-sale clauses that prevent assumption.
Any active VA or FHA listing could have an assumable mortgage. The key question: what year was the loan originated? Loans from 2019–2022 are most likely to have rates worth assuming (2.5–4.0%). Loans from 2023 onward may not provide enough savings to justify the process.
In San Antonio, properties near JBSA, in Schertz, Universal City, Live Oak, and other military-adjacent communities are especially likely to have VA loans — and therefore assumable loans at those legacy rates.
Ask your agent to look for VA or FHA listings and request the loan details from the seller's agent. Sellers with assumable loans have a significant marketing advantage — good agents lead with it in the listing description.
The assumption process is handled through the original lender, not through a new mortgage. The buyer qualifies with the existing lender — credit check, income verification. This typically takes 45–90 days, longer than a standard purchase closing.
The equity gap: The seller likely has equity in the home above the loan balance. You need to cover that difference — either in cash, through a second mortgage, or negotiated into the deal. For example: home is worth $350,000, assumable loan balance is $270,000 — you need to cover $80,000 separately.
Some specialty lenders now offer second mortgages specifically designed to cover assumable mortgage equity gaps. This is an evolving market as assumable mortgages have grown in demand.
I know which neighborhoods and listing types are most likely to have VA and FHA loans eligible for assumption. If locking in a below-market rate is a priority for you, let's make that part of your search strategy.