Assumable 101
FHA vs. VA Assumption: What’s the Difference?
By David Golovin · September 9, 2026 · 3 min read
Both FHA and VA loans are assumable: you take over the seller’s rate and balance, and cover the gap with your downpayment. The differences are in the details.
| FHA Assumption | VA Assumption | |
|---|---|---|
| Who can assume | Any qualified buyer | Any qualified buyer |
| Upfront fee | None (MIP continues) | 0.5% funding fee |
| Appraisal required | No | No |
| Occupancy required | Yes | No, unless substituting entitlement |
| Seller entitlement tied up | N/A | Yes, until loan is paid off |
| Typical timeline | 60-120 days (Roots averages 43) | 60-120 days (Roots averages 43) |
The VA entitlement catch
When a non-veteran assumes a VA loan, the seller’s entitlement stays tied up until the loan is paid off. A veteran buyer can substitute their own entitlement and free the seller’s immediately.
Occupancy
FHA assumptions require the buyer to occupy the home. VA assumptions do not, unless the buyer is substituting entitlement.
How to find them
Roots shows the estimated rate, downpayment, and monthly payment on assumable FHA and VA listings for free.
FAQ
Do I have to be a veteran to assume a VA loan?
No. Any qualified buyer can assume a VA loan. The seller’s entitlement stays tied to the loan until it is paid off, unless the buyer is an eligible veteran who substitutes their own entitlement.
Who pays the 0.5% VA funding fee?
Typically the buyer. It is 0.5% of the remaining loan balance, so $1,400 on a $280,000 balance.
How long does an assumption take?
Typically 60 to 120 days through the seller’s loan servicer. Roots coordinates the process end to end, and our assumption closings average 43 days.
Is an appraisal required?
No. Neither FHA nor VA assumptions require a new appraisal. That saves time and several hundred dollars compared to a new loan.