I'm in the process of buying a house and am going to try to assume the current owner's VA loan. My VA loan is currently tied up in another property, but as I understand it you do not need VA eligibility to assume another's VA loan.

Is this correct? Also, since I'm not tied to VA eligibility, can a co-borrower be on the assumed loan?

Never ran into this so I googled. Any loan made before 3-1-88 is freely assumable. After it has to be approved by an authorized lender or VA. So you still go through the approval process like any other loan.

The seller will want his equity if any so you still have to bring money to the table. Except for a better interest rate I do not see much advantage

https://www.valoans.com/articles/va-loan-assumability/

Also you might look at FHA for a low down option but they carry PMI and VA does not.

Thanks....yeah the seller has some significant equity but I have enough to cover that. The main benefit I'd get is his 3.5 percent rate would transfer to me and he's already paid the first several years of the mortgage---which if I'm looking at correctly means I get the benefit of paying straight equity and avoiding the first several years of front loaded interest payments.

Paying a few years is not that much of an advantage since rarely do people sit on a loan that long. I'll assume that va qualification process is required like a new loan. So you would be qualified based on having two mortgages and other debt to income.

I'm guessing it could get pretty complicated since it's not common and the lender may or may not know how to deal with this

Just saw your edit and yes the payments help but you still will not be paying pure equity. A 30 year front loads interest the first five years or so. Google an amortization calculator and compare.