Virginia passed a bill requiring an assumption provision be included in a conventional home mortgage loans. Under the bill, a conventional home mortgage loan must include a provision allowing any existing borrowers on the loan to assume the property interest of another borrower on the loan if:
- The assumption is in connection with the granting of a decree of annulment or divorce, and
- The assuming borrower qualifies for the loan.
The bill also requires a mortgage lender to disclose the assumption provision to a loan applicant within 3 days of receiving a completed loan application. Conventional home mortgage loan does not include a loan insured or guaranteed by the federal government. The bill becomes effective July 1, 2026.
Click to view the VA HB 304: https://www.tenaco.com/wp-content/uploads/2026/04/VA-HB-304-04-15-26.pdf
