I’m exploring possible solutions for a veteran client who’s interested in assuming a VA loan, and wondering if there are any creative financing options available to cover the remaining balance.

Scenario:

-The seller (also the landlord) is on board with the VA assumption.

-The sale price is $315K, but the current VA loan has a balance of $210K.

-That leaves a $105K gap the buyers would need to cover.

The Buyers:

-Veteran + fiancé (willing to marry before closing if needed to combine income).

-Mid-500s credit for the veteran

-Low 600s for the fiancé

-Veteran income: ~$33K W-2

-Fiancé income: ~$50K, not W-2 and hasn’t filed taxes yet (but has regular weekly deposits into a personal account)

-Monthly debts: ~$1,400

-Strong rent history: 9 years on-time

-Veteran missed payments in the past, possibly related to student loans, likely driving the lower credit score. Given their current income, the Veteran would likely qualify for $0 IDR payment. (This requires further investigation)

I know this particular case is a tough one, and it may not work given the buyers’ profiles, but it made me curious about what’s possible for this client or others in similar situations.

Are there any programs (VA or non-VA) that could help bridge that $105K difference? Maybe something like a supplemental second loan, DPA program, or even unsecured financing?

Would love to hear from anyone who’s dealt with similar VA assumption scenarios. Thanks!