Most agents assume assumptions get harder as equity gaps widen. New data says a specific slice of VA sellers are moving the opposite direction.

ICE's August Mortgage Monitor put a number on something brokers have felt for a year: 813,000 mortgage holders are now underwater, up 44% year over year. The negative equity sits almost entirely with FHA and VA borrowers who bought between 2022 and 2025.

That's a rough spot for those homeowners. It also shrinks the biggest obstacle to assuming their loans.

An assumption usually stalls when the buyer has to bring cash to cover the gap between sale price and remaining balance. Wide gap, big check, fewer buyers who can write it. A seller who bought in 2023 at 5.5% and hasn't seen much appreciation since is sitting on a thin gap by definition. Some are sitting on none. That widens the buyer pool considerably: instead of bridging $60,000 or $80,000 in built-up equity, a buyer can step into the loan for the 0.5% funding fee and closing costs alone.

Watch for VA-financed homes purchased 2022 through early 2024 with minimal price movement since. If the seller needs to sell rather than hold and rent, an assumption may close faster than waiting on a buyer who has to qualify at today's rates.

Want a list of candidates in your farm area? I can pull VA-financed properties purchased 2022 through early 2024 and flag which ones are likely sitting in this window — a natural reason to reach out before someone else does.

Source: ICE Mortgage Technology, August 2026 Mortgage Monitor.

Why one lender's answer isn't the only answer.

Not every assumption lands at zero gap. Most still leave the buyer covering some difference between price and balance, whether that's $15,000 or $50,000.

This is where the lender behind the deal matters more than agents usually realize. A retail bank offers whatever sits on its own menu, and if none of it fits the gap, the file stalls. A broker works wholesale across dozens of lenders, which opens more ways to structure around it: subordinate financing behind the assumed VA first, a seller carryback structured to satisfy the servicer, or short-term bridge financing while the buyer's permanent loan closes. More lenders in the mix means a better chance one of them has already solved this exact problem.

If you've got a listing where the assumption math is close but not quite there, loop me in before you write it off.

Trends: VA rate lower from last week and now back below conventional, a reversal from last month.

Rates reflect national averages as of August 17, 2026 per Bankrate's weekly lender survey. Rates change daily and are not a commitment to lend. Your clients' actual rate will depend on credit profile, loan amount, property type, and individual file characteristics. Contact Gene for current pricing.

Gene Richter, NMLS #2806488 · PBT Bancorp, NMLS #257781

🏠 Equal Housing Opportunity

Underwater doesn't mean stuck. For a specific group of your VA sellers right now, it means the opposite: a smaller check for the buyer to write and a faster path to close.

Have a file where the assumption math might work, even if it's not obvious yet? Call or text before you rule it out, or tap the Connect button above.

To review the full August issue, visit this link.

— Gene Richter, Licensed Mortgage Loan Originator NMLS #2806488 · PBT Bancorp NMLS #257781 · Colorado Springs, CO (719) 722-4278 · VASpotlight.com

🏠 Equal Housing Opportunity | This newsletter is intended for real estate professionals and does not constitute a consumer credit advertisement. Rates shown are national averages for informational purposes only and are not a commitment to lend. Not all borrowers will qualify. This content does not constitute tax, legal, or financial advice — consult a qualified professional for guidance specific to your situation. Gene Richter is a licensed Mortgage Loan Originator (NMLS #2806488) operating through PBT Bancorp (NMLS #257781), licensed to originate mortgage loans in Colorado.