VA Assumption Calculator
Is it worth putting cash down to take over a seller's low-rate VA loan? See what your cash gap actually earns compared to getting your own new loan.
Selling a home with a VA loan? See what your rate is worth
Don't know the balance? Estimate it
Estimated with standard amortization. Your servicer's payoff figure is the number to trust.
Compared to keeping that cash invested at 5%.
Without a second loan: $356,250
$4,551 vs. $5,471 a month
Extra cash to close divided by monthly savings
Counts the extra cash you put in and what it could have earned elsewhere.
What you're getting
At 2.75% with 25 years left
Blended with the second loan: 5.16%
New loan pays down $53,320
Market value plus $173,322 assumed appreciation at 4% a year
Price check
Don't pay more than $904,777. Fair range: $841,911 to $873,344.
The premium where your net advantage reaches zero
Months of payment savings to recover the extra cash
With the second loan covering the rest of the gap
| Side by side | Assume | New VA loan |
|---|---|---|
| Loan amount | $450,000 + $250,000 second | $817,200 |
| Rate | 2.75% / 9.5% | 6.375% |
| VA funding fee | $2,250 (cash) | $17,200 (financed) |
| Principal & interest | $4,178 | $5,098 |
| Tax, insurance, HOA | $373 | $373 |
| Monthly total | $4,551 | $5,471 |
| Cash to close | $106,250 | $4,000 |
| Principal paid in 5 years | $76,508 | $53,320 |
| Remaining debt after 5 years | $623,492 | $763,880 |
| Projected value after 5 years (4%/yr) | $973,322 | $973,322 |
| Projected equity after 5 years | $349,830 | $209,443 |
New VA loan buys the same home at market value, 0% down, with the same closing cost estimate. Appreciation cancels out because both paths own the same home; the projected value line is context only.
Want us to run your real numbers?
Book a free 1-on-1 with Tristan or Patrick. No pressure, no fluff, just your numbers.
BOOK A FREE CALLEstimates only, for education. Not a loan offer, commitment, or tax or legal advice. Confirm all numbers with your lender, CPA, and attorney.
How this works
The gap is the purchase price minus the existing loan balance. You cover it with cash and, if turned on, a second loan for the rest. The VA assumption funding fee is figured on the existing balance and paid in cash. The assumed loan keeps its rate and remaining term. The comparison is a new 30-year VA loan on the same home at market value, 0% down, with the funding fee financed. Interest and principal are compared over your expected ownership period. Projected value equals market value multiplied by 1.04 for each year held. Equity subtracts remaining debt, including the second loan, from that projected value. Net advantage also counts the future value of the monthly savings and of the extra cash to close at the return you set. The return on your cash gap is the annual rate where the future value of the extra cash equals the debt gap plus the future value of the monthly savings, solved by bisection. The fair max premium is the price above market value where that net advantage reaches zero, limited by your cash when you have no second loan. The 4% growth is an assumption, not a prediction; equity does not deduct selling costs or taxes.
Frequently asked questions
What is a VA loan assumption?
A VA assumption lets a buyer take over the seller's existing VA loan, including its interest rate and remaining term. The buyer pays the difference between the price and the loan balance, called the gap, in cash or with a second loan.
Do I need to be a veteran to assume?
No. Any buyer who qualifies with the servicer can assume a VA loan. If the buyer is a VA-eligible veteran who substitutes their entitlement, the seller gets their entitlement back. If not, the seller's entitlement stays tied to the loan.
How do I cover the gap?
With cash, a second loan from a lender that allows one behind a VA assumption, or a mix of both. Some buyers also negotiate the price to shrink the gap.
What happens to the seller's entitlement?
If a VA-eligible buyer substitutes their entitlement, the seller's entitlement is restored. Otherwise it stays with the loan until the loan is paid off, which limits the seller's next VA purchase.
How long does an assumption take?
Plan for 45 to 90 days or more, depending on the servicer. Assumptions take longer than a new loan because the servicer handles the approval and transfer.
How is projected equity calculated?
We grow the market value at an assumed 4% per year, compounded over your expected ownership period, and subtract the remaining loan balances. The assumption path includes any second loan; the new VA path buys the same home at market value with its funding fee financed. Appreciation is not guaranteed, and equity is not net sale proceeds or profit. Selling costs and taxes are not deducted.
What is the net advantage number?
It is the equity edge from assuming, plus what the monthly payment savings could grow to, minus what the extra cash to close could have earned at the return you set. It is the fairest single comparison because it counts the cash you tie up, not just the payment.
What is the fair max premium?
The most a buyer could pay over market value before the rate advantage stops paying off, given the cash gap, the second loan and the ownership timeline. Sellers can use it to gauge what their low-rate loan adds to the price; buyers can use it as a ceiling.
Want us to run your real numbers?
Book a free 1-on-1 with Tristan or Patrick. No pressure, no fluff, just your numbers.
BOOK A FREE CALL