Encore Series – VAGap

Assume the Seller’s VA First Mortgage

• Buyer takes over the seller’s VA loan at its original interest rate and terms
• Seller’s loan servicer processes the assumption
• Servicer manually qualifies the buyer for income, credit, and VA guidelines

Entitlement Options:

• Substitute buyer’s VA entitlement
• OR keep seller’s entitlement tied to the loan with written approval

Finance the GAP

When the seller’s loan balance is lower than the purchase price, a “gap” is created.
VA GAP financing covers this difference at closing.

Features:

• Interest‑only options
• No prepayment penalties
• Flexible repayment at the buyer’s pace
• Eliminates the need for large cash‑to‑close

Key Advantages for Veteran Buyers

• Exceptionally low rates through VA assumption
• Reduced cash‑to‑close by financing the gap
• Flexible payment structure, including interest‑only
• Preserves liquidity for improvements or savings
• Entitlement flexibility for long‑term planning

The VA GAP Solution offers veteran buyers an efficient way to secure below‑market VA rates while minimizing upfront cash requirements. By combining a VA Assumption with flexible VA GAP financing, it streamlines the purchase process and supports a more stable, cost‑effective path to homeownership.