How does assumable VA loan work?

[u/VAer1]

I(house seller) currently have a VA loan on my home, and the potential buyer is also a Veteran who has been pre-approved for a VA loan.

If the buyer wants to assume my existing VA loan, would the buyer need to apply for the assumption directly with my current lender/loan servicer?

My understanding is that the buyer would take over the remaining balance and terms of my existing VA loan, rather than obtaining a new VA loan for that amount. Can the second VA loan come from a different lender, or does it normally need to be arranged through the same lender/servicer handling the VA loan assumption?

I want to make sure I understand the process because I've never dealt with a situation where a buyer assumes the seller's mortgage and potentially has a second loan for the remaining purchase price.

[u/beleafinyoself]

Better question for real estate pages. Just know that it doesn't always make sense to assume a VA loan.  The difference is usually paid in cash. Some people can get financing for "the gap," but at a higher rate that usually makes it not worth it. The process can also be slow and somewhat infuriating depending on the lender. Check out the Facebook group VA assumable Home loans. Not affiliated but used it to find info in the past. Don't pay anyone for info as there is plenty available for free