Assumable Mortgages in San Antonio (2026): Taking Over a VA or FHA Loan

By Chris Dudley, San Antonio REALTOR® and founder of Legacy Realty Group, brokered by Real Broker, LLC (TREC #731381). Updated October 2026.

An assumable mortgage lets a buyer take over the seller's existing loan, including its interest rate and remaining term. San Antonio is home to Joint Base San Antonio, and VA and FHA loans are common here. If the seller's rate is lower than today's rates, an assumption can lower the buyer's monthly payment. It also has real catches. Here's how it works.

Which loans can be assumed?

FHA loans: assumable. For loans on homes bought after December 15, 1989, the buyer must qualify with the lender.
VA loans: loans made after 1988 are assumable. The buyer does not have to be a veteran, but the lender must approve the buyer's credit.
USDA loans: assumable if the buyer meets USDA eligibility, including income limits.
Conventional loans: generally not assumable.

(U.S. Bank)

The equity gap: the part most buyers miss

You take over only the loan's remaining balance, not the home's price. If a home sells for $350,000 and the loan balance is $250,000, you need to cover the $100,000 difference with cash or a second loan, and the existing lender has to agree to that second loan. That gap is why many assumptions work best on loans that are only a few years old.

VA assumptions: entitlement and fees

Funding fee: the VA funding fee on a loan assumption is 0.5% of the loan amount. Veterans receiving VA disability compensation, and some others, are exempt. (VA.gov)
Seller's entitlement: if the buyer is an eligible veteran who substitutes their own entitlement, the seller can get theirs back. If the buyer is not a veteran, the seller's entitlement can stay tied to the loan, which can limit the seller's next VA purchase.
Release of liability: sellers should get a release of liability approved by the lender. Without one, the seller may stay legally responsible for the loan.

How the process works

Confirm the loan type and that the servicer allows assumption (ask the seller for a recent mortgage statement).
Agree on price and how the equity gap will be paid.
The buyer applies with the loan servicer, who reviews credit and income.
The servicer approves the assumption and the seller's release of liability.
Close through a Texas title company.

Servicer approval can take longer than a new loan, so build extra time into the contract.

Questions to ask before you write an offer

What is the rate, balance and remaining term on the loan?
How much cash do I need to cover the equity gap and closing costs?
How long is the servicer taking to approve assumptions?
(Sellers) Will my VA entitlement be restored, and will I get a release of liability?

Frequently asked questions

Can a non-veteran assume a VA loan in Texas?

Yes. VA loans made after 1988 can be assumed by a non-veteran who qualifies with the lender, but the seller's VA entitlement may stay tied to the loan unless a veteran buyer substitutes their own.

What is the VA funding fee on an assumption?

0.5% of the loan amount, according to VA.gov. Veterans receiving VA disability compensation and some others are exempt.

Are FHA loans assumable?

Yes. The buyer must qualify with the lender for FHA loans on homes bought after December 15, 1989.

Can I assume a conventional loan?

Usually not. Most conventional loans are not assumable.

How do I find homes with assumable loans in San Antonio?

Ask your agent to check listings for VA, FHA or USDA financing and confirm with the seller's servicer. Chris Dudley can help you search and run the numbers on the equity gap.

Thinking about an assumable loan?

Chris Dudley, San Antonio REALTOR® with Legacy Realty Group, brokered by Real Broker, LLC, helps buyers and sellers across San Antonio, including near JBSA, work through assumptions from offer to closing. Call (210) 838-6099 (Mon-Sat, 9 AM-6 PM).