How Long Does It Take to Assume a VA Loan? A Closer Look at the VA Loan Assumption Timeline

Purchasing a home is likely one of the biggest financial decisions you’ll ever make. And for many, obtaining a mortgage to finance the purchase can be a complicated process filled with paperwork and waiting This is why VA loan assumptions have become an attractive option for eligible homebuyers

By assuming an existing VA loan from the current owner, you can skip the intensive application and approval process and take advantage of beneficial terms like low rates. But exactly how long does it take to assume a VA loan these days?

The timeline depends on several factors. However, recent changes have helped accelerate VA assumption approvals. Keep reading to learn what impacts the VA loan assumption process and get an inside look at how long you can expect the process to take in today’s real estate market.

What Is a VA Loan Assumption?

First, let’s make sure we’re all on the same page about what VA loan assumption entails.

A VA loan assumption allows an eligible buyer to take over the mortgage from a current VA loan holder Rather than applying for their own financing, the buyer “assumes” responsibility for the existing loan

This transfers the loan balance, terms, and monthly payments to the assuming buyer. The assumptor benefits from inheriting the original low interest rate and other conditions.

Active military members, veterans, and surviving spouses meeting lender criteria can assume VA loans. Non-veterans can also assume through stricter approval.

What Impacts the VA Assumption Timeline?

When you assume a mortgage, you don’t undergo full underwriting like with a regular purchase loan. But the VA assumption process still involves several steps that impact the overall timeline:

• Application – You must complete a full loan application so the lender can verify employment, income, and creditworthiness.

• Documentation – Extensive paperwork must be submitted, like VA eligibility proof for veterans or credit reports for civilian assumptors.

• Processing – After receiving everything, the lender must evaluate all materials and approve the assumption.

• Closing – Final loan assumption agreements and paperwork must be signed to complete the transfer of responsibility.

Delays can occur if any required documents are missing or information is inaccurate. Your diligence in providing prompt, correct application materials helps expedite assumption approval.

How Long Does VA Loan Assumption Take?

In the past, VA loan assumptions took 90-120+ days to complete. But recent procedural changes have reduced the typical timeline to 45 days or fewer.

Pre-2022 VA Assumption Timeline

Up until last year, VA assumptions could be a lengthy 3-4 month process. Lenders had to send physical application documents to VA regional offices for manual underwriting and approval.

This outdated paper-driven system created delays and inefficiency. It was not uncommon for VA loan assumptions to drag out up to 6 months in some cases.

Faster Modern VA Assumption Timeline

Fortunately, the VA has taken steps to accelerate assumptions using today’s digital technology.

In January 2022, VA Circular 26-23-27 went into effect. It mandated a streamlined electronic assumption process to cut wait times.

Now, lenders can submit assumptions directly into the VA’s WebLGY system for near real-time processing rather than mailing paper apps.

As a result, the VA requires lenders to render assumption decisions within 45 days of receiving a complete application package.

This 45-day limit has reduced the typical VA loan assumption duration by half compared to previously. The entire process now usually takes 4-6 weeks from application to closing.

How to Speed Up Your VA Assumption

While the VA’s new timeline standards help shorten the assumption process, you can take steps to expedite your own assumption:

• Get pre-approved – Confirm your credit, income, and eligibility before house hunting. This gives the lender a head start.

• Communicate regularly – Promptly provide any requested documents and respond to lender inquiries.

• Avoid changes – Don’t switch jobs or apply for new credit during the process, as this can complicate approval.

• Use the same lender – Assuming with the home’s existing lender can sometimes accelerate the process.

• Be flexible – Accept the first available closing date rather than delaying.

Following these best practices helps you get approved and close on your VA assumed loan faster.

Locating an Available VA Loan to Assume

As you navigate the VA loan assumption process, identifying an available VA mortgage to assume can also impact your timeline. Here are tips for finding assumable loans efficiently:

• Search real estate sites for listings advertising VA loan assumptions.

• Connect with a military-focused real estate agent who can match you with sellers open to assumptions.

• Consider assuming from a family member or friend if they already have a VA loan.

• Check specialized military housing sites that connect eligible buyers with assumption inventory.

• If needed, consider broadening your home search parameters to increase options.

Casting a wide initial net makes it more likely you’ll quickly locate an assumable VA loan fitting your needs and life goals.

Is Assumption Faster Than a Normal Purchase?

Given the streamlined 45-day mandate in place, obtaining a home via VA loan assumption is often faster than traditional purchase financing.

Here’s how the timelines compare:

VA loan assumption:

• Application to close in 4-6 weeks

• No lengthy underwriting required

• 45-day max lender processing time

Traditional purchase/mortgage:

• Close in 6-8+ weeks

• Full underwriting and documentation

• Contingencies can drag out timeline

While every home purchase has variables, assumption tends to be the quicker route. You get to bypass much of the red tape that draws out financing for standard purchases.

Partner With a Trusted Lender

Assuming a VA loan lets you achieve homeownership faster than traditional methods in many cases. Work with a lender experienced in prompt VA assumptions who can guide you through meeting the new 45-day timeline standards.

With recent process upgrades in place, VA mortgage assumptions offer military buyers a streamlined path to owning a home under favorable loan terms. Follow our tips to help speed up your timeline and get into your dream home efficiently. The quicker you can assume a VA loan, the sooner you can start building equity and enjoying the stability of homeownership.