Buyer & Seller Guide
VA Loan Assumption in Tucson
How taking over a seller's VA loan works: who can assume one, what it costs, how long it takes, what happens to the seller's entitlement, and the homes around Tucson whose listings say their VA loan can be assumed.
The short answer
A VA loan can be assumed by any buyer who qualifies with the loan servicer, veteran or not. The buyer takes over the seller's loan as it stands and pays the seller's equity in cash or with a second loan. VA caps what the buyer can be charged: a processing fee of up to $300 plus the credit report, up to $463 more in Arizona, and a 0.5% funding fee unless the buyer is exempt. A servicer with VA's automatic authority must decide within 45 days of a complete file. Unless an eligible veteran buyer substitutes their own entitlement, the seller's VA entitlement stays tied to the loan until it is paid off.
Rules as of October 22, 2026, from the sources at the foot of this page.
Homes With an Assumable VA Loan
The list of assumable listings is not available right now. It is rebuilt from the MLS every night; please check back shortly, or tell us what you are looking for and we will send you the matches.
How a VA Loan Assumption Works
Find a home whose VA loan can be assumed
The listing says so, or the seller agrees to it. The purchase contract should make the sale depend on the servicer approving the assumption, and say how the seller's equity will be paid.
Apply with the seller's loan servicer
The servicer is the company the seller sends payments to. The application is VA Form 26-6381, the form for assumption approval and the seller's release from liability, and the buyer is underwritten to the same VA credit and income standards as a VA purchase. The loan must be current at closing; a missed payment can be brought current with cash.
The seller signs VA's entitlement acknowledgment
Since 2024 the servicer must give the seller VA Form 26-10291, which spells out what happens to their VA entitlement, and the seller signs it before closing.
The servicer decides
A servicer with VA's automatic authority must decide within 45 days of receiving a complete package. One without it sends the file to VA. Servicers may not add rules of their own, such as a minimum credit score, and a denial can be appealed to VA within 30 days.
Close
The buyer pays the seller's equity, the funding fee in cash, and the allowed closing costs. When the buyer assumes full liability, the seller can be released from personal liability to VA.
What a VA Assumption Costs
| Item | Federal limit | Source |
|---|---|---|
| Processing fee | Up to $300, plus the actual cost of the credit report | 38 CFR § 36.4313(d)(8) |
| Arizona locality variance | Up to $463 more, charged only if the assumption closes | VA Circular 26-24-5 |
| VA funding fee | 0.5% of the loan balance, paid in cash at closing; none for veterans exempt from the funding fee, such as those receiving VA disability compensation | 38 CFR § 36.4313(e); VA.gov |
| Other closing costs | Recording fees and taxes, title, and the taxes and insurance on the home. A fee not on VA's list may not be charged to the buyer. | VA Circular 26-23-10, Change 1 |
| The seller's equity | The price less the loan balance, in cash or with a second loan | VA Circular 26-24-17 |
These are the most a servicer may charge, as of October 22, 2026. Ask the servicer for its own fees in writing.
The Seller's VA Entitlement
Entitlement is the part of a VA loan that VA guarantees. A seller can use it again on another VA loan only once it is restored, and in an assumption that happens one of two ways.
If the buyer is an eligible veteran with at least as much entitlement as the seller used, and will live in the home, the buyer can substitute their entitlement for the seller's. VA then restores the seller's. Several veteran buyers can share a substitution; a veteran and a non-veteran who is not their spouse cannot.
If the buyer is not a veteran, or does not substitute, the seller's entitlement stays tied to the loan until it is paid off, and if the buyer later defaults and VA pays a claim, that loss must be repaid before the entitlement comes back. VA Form 26-10291 explains this to the seller before closing. More in Can a Non-Veteran Assume a VA Loan?
Paying the Seller's Equity
The buyer takes over the loan balance, not the price. The difference, the seller's equity, is paid at closing.
It can be paid in cash or, since August 2024, with a second loan behind the VA loan. The second loan's payment counts when the buyer is qualified, it cannot give the buyer cash back, and its rate can be higher than the VA loan's. Not every lender makes these, so line one up before you write the offer.
The VA funding fee cannot be added to the loan on an assumption: it is paid in cash at closing, unless the buyer is exempt.
For Sellers With a VA Loan
An assumable VA loan is worth saying in the listing: buyers search for it. Before you offer it, read VA Form 26-10291 with your servicer, because an assumption by a non-veteran leaves your entitlement tied to the loan until it is paid off.
Ask to be released from liability when the assumption is approved, on VA Form 26-6381. A COVID-era VA partial claim on your loan must be repaid when the home changes hands; if your loan has a partial claim from the program VA started in June 2026, ask the servicer how it is handled before you sign a contract. More in Selling With an Assumable VA Loan in Tucson.
VA and FHA Assumptions Side by Side
| Topic | VA loan | FHA loan |
|---|---|---|
| Who can assume | Any buyer who qualifies, veteran or not | A buyer who qualifies and will live in the home (loans closed since Dec 15, 1989) |
| Servicer's deadline | 45 days from a complete package | None in HUD's current handbook; ask the servicer |
| Processing fee cap | $300 plus credit report; up to $463 more in Arizona | $1,800 plus third-party costs |
| Government fee | VA funding fee of 0.5%, in cash, unless exempt | None for the assumption; the loan's mortgage insurance continues |
| Paying the seller's equity | Cash, or a second loan VA allows since 2024 | Cash, or a second loan if the servicer allows it |
| Seller's release | VA Form 26-6381; entitlement restored only with a veteran's substitution | Form HUD-92210.1 |
| Existing partial claim | A COVID-era VA partial claim is repaid at the transfer | An FHA partial claim is paid off at the assumption |
In Arizona
Arizona is a community-property state: both spouses sign to sell or put a lien on a home (A.R.S. § 25-214), so plan for both on the seller's side and, where it applies, the buyer's.
Where they are: of the 154 listings whose own description said on October 22, 2026 that the loan could be assumed, 74 had a Tucson mailing address, 23 were in Vail, 19 in Sahuarita and 18 in Marana.
Frequently Asked
VA Loan Assumption Questions
Can a non-veteran assume a VA loan?+
Yes. Any buyer who meets VA's credit and income standards can assume a VA loan, veteran or not, and the loan must be current at closing. What changes is the seller's side: unless the buyer is an eligible veteran who substitutes their own entitlement, the seller's VA entitlement stays tied to the loan until it is paid off.
What happens to the seller's VA entitlement?+
If an eligible veteran buyer substitutes their entitlement, the seller's is restored. Otherwise it stays with the loan until the loan is paid in full, and if the buyer later defaults and VA pays a claim, that loss must be repaid before the seller's entitlement can be restored. The servicer gives the seller VA Form 26-10291, which explains this, to sign before closing.
What is a substitution of entitlement?+
A veteran buyer with enough VA entitlement, who will live in the home, puts their entitlement in place of the seller's. VA then restores the seller's entitlement so they can use it again. A veteran and a non-veteran who is not their spouse cannot make a substitution together.
How long does a VA assumption take?+
A servicer with VA's automatic authority must decide within 45 days of receiving a complete package, with extra time only for documented delays by others. The whole sale usually takes longer than a new-loan purchase, because the clock starts when the file is complete. Plan the contract dates around it.
What can a servicer charge for a VA assumption in Arizona?+
Up to $300 plus the actual credit report cost, and up to $463 more as VA's Arizona locality variance if the assumption closes. On top of that come the 0.5% VA funding fee (unless the buyer is exempt) and ordinary closing costs such as title and recording. A fee not on VA's list may not be charged to the buyer.
Is there a VA funding fee on an assumption?+
Yes: 0.5% of the loan balance, paid in cash at closing. It cannot be added to the loan. Veterans exempt from the funding fee, such as those receiving VA disability compensation, do not pay it.
Can a second loan pay the seller's equity?+
Yes. Since August 2024 VA allows a second loan behind the VA loan to pay closing costs or what is owed to the seller. Its payment counts when the buyer is qualified, it cannot give the buyer cash back, and its rate can be higher than the VA loan's. Not every lender offers these, so ask early.
What if the servicer stalls or refuses?+
Servicers may not add their own requirements, such as a minimum credit score, or miss VA's 45-day deadline; VA can penalize them for it. Either the buyer or the seller can appeal a denial to VA within 30 days.
Is the seller still liable after the assumption?+
Not once the servicer approves the assumption and releases them: the buyer takes on full liability for the loan. The release is requested on VA Form 26-6381, the same form used for the assumption approval.
Does a VA partial claim have to be paid off first?+
A COVID-era VA partial claim must be repaid in full when the home changes hands. VA started a new partial claim program in June 2026; ask the servicer how one on the seller's loan is handled before you sign a contract.
How do I find Tucson homes with an assumable VA loan?+
The list above is rebuilt every night from the MLS: listings whose own description says the seller's VA loan can be assumed, newest first. We can also ask a seller whose listing doesn't mention it.
Keep Reading
- FHA loan assumption in Tucson →
- Can a non-veteran assume a VA loan? →
- Selling with an assumable VA loan in Tucson →
- Assumable homes around Tucson: what the MLS shows →
Sources
- 38 U.S.C. § 3714, Assumptions; release from liability
- 38 CFR § 36.4303(l), assumption approval and its 45-day decision
- 38 CFR § 36.4313, charges and fees
- VA Circular 26-23-10, assumption processing (May 22, 2023) and Change 1 (February 23, 2024)
- VA Circular 26-23-27, holder requirements on assumptions (December 20, 2023)
- VA Circular 26-24-5, assumption locality variances (February 26, 2024) and Exhibit A
- VA Circular 26-24-9, VA Form 26-10291, Assumption Entitlement Acknowledgment (April 25, 2024)
- VA Circular 26-24-17, secondary financing on assumptions (August 2024)
- VA.gov, VA funding fee and loan closing costs
- VA.gov, eligibility and restoring entitlement
- VA Form 26-6381, Application for Assumption Approval and/or Release from Personal Liability
- A.R.S. § 25-214, management of community property
- Listings: MLS of Southern Arizona (MLSSAZ) on-market listings whose own description says the seller's loan can be assumed, or whose financing terms include “Assumption”, read every night. The loan type is the one the listing names; the listing agent and the servicer confirm it.
- This guide summarizes the federal rules as they read on October 22, 2026. It is general information, not lending or legal advice and not an offer of credit. Tucson Experts is a real estate team with eXp Realty, not a lender: the loan servicer decides every assumption, and its fees and timing can differ within the federal limits. Confirm the terms of a specific loan with its servicer.
Ask Us
Buying or Selling With an Assumable VA Loan?
Tell us what you are looking for, or about the loan on the home you want to sell. We will send you listings that fit, ask sellers whose listings don't say, and walk you through the contract and the timeline. We are a real estate team, not a lender: the loan servicer approves every assumption.
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