VA Loan Assumption – Questions regarding the assumer

Hello,

My spouse and I are eligible for a VA Loan, and because of disability rating, would be able to do so without funding fee. The area we live is a large city but has had very few assumable mortgage listed; therefore, we were just planning to buy a house using a jumbo VA loan.

However, a house has come on the market that is VA loan assumable with a very desirable interest rate.

A few questions I have about this process before diving off the deep end and approach the sellers:

• We were hoping to purchase/move in more towards next summer, however, would consider purchasing sooner given such a circumstance. I have read historically assuming a VA loan can take 3-6 months. Has that been the case recently? A 6 month process and “closing” in the spring of next year would be great.

• How does the appraisal gap work? The area we live is HCOL and the home has appreciated several hundred thousand dollars since the home sold last in the mid 2010s. Is the appraisal gap simply the new sale price – initial principle? Does it take into account any principle that has been paid down?

• How does future VA eligibility work if you’ve assumed a VA loan previously? The home in particular is probably not a forever home. Would we be able to use the full amount of our VA eligibility in the future?

• The huge positive of assuming this loan is the interest rate that is more than half the current rate. Are there any negative to be aware of?

Appreciate any answers or advice!