Skip to content
Phyllis Domingo logo

From the Blog

VA Loan Assumptions in San Antonio: The 0.5% Fee and the $731-a-Month Math

A VA loan can be assumed by any buyer who qualifies, veteran or civilian, and the VA's assumption funding fee is only 0.5% of the remaining loan balance, about $1,500 on a $300,000 loan. With new purchase rates near 7.2%, taking over a seller's 3% VA loan could save roughly $731 a month on the same balance, about $8,770 a year. Here is how VA assumptions actually work in San Antonio and why they are quietly one of the smartest ways to buy near JBSA without waiting for rates to fall.

Phyllis Domingo October 30, 2026 7 min read Military Relocation
A suburban San Antonio home at dusk with a moving truck in the driveway and warm porch light

A VA loan can be assumed by any buyer who qualifies, veteran or civilian, and the VA's assumption funding fee is only 0.5% of the remaining loan balance, about $1,500 on a $300,000 loan. With new purchase rates near 7.2%, taking over a seller's 3% VA loan could save roughly $731 a month on the same balance, about $8,770 a year. Here is how VA assumptions actually work in San Antonio and why they are quietly one of the smartest ways to buy near JBSA without waiting for rates to fall.

YouTube thumbnail for Nobody Warns Military Families About Moving to San Antonio TX

Nobody Warns Military Families About Moving to San Antonio TX More videos are on my channel .

The number that makes assumptions interesting

Federal law (38 U.S.C. 3714) requires a VA loan to be approved for assumption once three conditions are met: the loan is current, the buyer assumes full liability, and the buyer meets VA creditworthiness standards. The VA assumption funding fee is 0.5% of the remaining balance, payable in cash at closing and not financeable, about $1,500 on a $300,000 balance. Veterans exempt from the standard VA funding fee are also exempt from the assumption fee. No military service or VA entitlement is required to assume; the loan's servicer underwrites the buyer.

The savings math on a $300,000 balance

Run principal and interest only. A 30-year fixed at 3% on a $300,000 balance carries about $1,265 a month; at 4%, about $1,432. A new 30-year fixed near 7.2% on the same balance runs about $1,996. Assuming the 3% loan saves roughly $731 a month, about $8,770 a year, and assuming the 4% loan saves about $564 a month, roughly $6,768 a year. Property taxes and insurance still reset to the new buyer's numbers, but the interest rate is locked for the life of the loan.

Who approves it, and how long it takes

The loan's servicer underwrites the buyer's credit, income, debts, and occupancy intent under VA standards. For loans closed on or after March 1, 1988, the VA must also approve the assumption, and servicers with automatic authority must issue a decision within 45 days per VA Circular 26-23-27. The seller's VA entitlement stays tied to the loan until it is paid off or the assuming buyer's entitlement substitutes, which is why a knowledgeable agent asks the right questions before anyone signs.

Where assumable loans live in San Antonio

Homes bought in 2020 through 2022, when the 30-year fixed averaged roughly 3% to 4.5%, are exactly where assumable VA loans sit. Military-heavy corridors around JBSA-Lackland, JBSA-Randolph, and Fort Sam Houston, plus Schertz, Cibolo, and Converse, are prime hunting grounds. The catch is that assumptions are negotiated: the seller does not have to accept one, and the buyer still pays the difference between the loan balance and the purchase price in cash or with a second lien.

Frequently asked questions

Do I have to be a veteran to assume a VA loan?

No. Any buyer who meets VA creditworthiness standards can assume, and the servicer must approve the assumption. Non-veterans pay the same 0.5% assumption fee unless exempt.

What does the seller give up?

The seller's VA entitlement remains obligated on the loan until it is paid off or the assuming buyer substitutes their own entitlement. That is the main reason some sellers hesitate, and why the negotiation matters.

What if the balance is less than the price?

The buyer covers the difference between the loan balance and the purchase price in cash or with a second loan. The assumed first lien keeps its original rate.

Phyllis Domingo, San Antonio REALTOR

Written by Phyllis Domingo

REALTOR® · TX License 745926 · 100+ homes sold · Helping families move well in San Antonio and the Hill Country since long before the hard part became normal.

Have a question about this topic?

Every family's situation is different. Send me a note and I will respond personally, usually within a business day.

No pressure, ever. Your question is the only thing on the table. You can also call (210) 744-5478 or book a time to talk. Your information is used only to respond to your inquiry.

Let’s find the home and community that fit your lifestyle.

Whether you are moving across the country or across town, I bring honest answers, local insight, and no pressure to every step of the process.

Prefer email? realtorphyllisdomingo@gmail.com

Text Now