A veteran with a VA loan is being transferred. What could John do with his present home?

• A. Allow a non-veteran to assume the loan and go on to purchase another home
• B. Refinance the loan with a new lender
• C. Sell the property with a new buyer assuming the loan
• D. Terminate the loan and surrender property

Answer: (A)

VA loans are typically assumable, meaning a qualified buyer can take over the existing mortgage under its current terms with the lender’s approval. For a service member who’s being relocated, this makes it possible for someone else to assume the loan and continue making payments, while the veteran moves on to a new home and often uses his VA entitlement for a new loan. The new borrower must meet credit and income requirements and the lender (and sometimes the VA) must approve the assumption. If liability can be released, the veteran is no longer on the hook for that loan, freeing him to pursue another VA-backed purchase. This option keeps the current home financed without paying off the loan or surrendering the property, which is why it’s the most practical choice in this relocation scenario.