1250 Worchester Street, Aurora, CO 80011

A VA loan can be assumed by a buyer who does not have military service, as long as the loan servicer approves them. The servicer reviews credit, income and debts in much the same way a new lender would, and the review usually takes several weeks.

The buyer takes over the existing balance at the existing rate. The difference between the asking price and that balance is paid with cash or a second loan, which is why a listing with a large gap can be harder to assume than the rate alone suggests.

The seller's VA entitlement stays tied to the loan unless the buyer is an eligible veteran who substitutes their own. That matters to the seller, and it can affect how open they are to a non-veteran assumption.

A funding fee of 0.5 percent of the loan balance normally applies to the buyer, with exemptions for certain disability ratings.