Two separate questions, and the second mortgage does nothing for the seller's entitlement. The seller's full entitlement comes back in exactly two ways: the assumed VA loan gets paid off entirely, or the buyer is an eligible veteran who completes a substitution of entitlement, swapping their own entitlement in for the seller's. A second mortgage sitting behind the assumed loan changes neither of those. On the financing itself, yes, you generally can add a second mortgage on top of an assumed VA loan to bridge the gap between the assumable balance and the purchase price. Say a seller owes around $470,000 on an assumable VA loan and the home is worth $600,000. A buyer could assume that first loan and take a second for roughly the $130,000 difference (all figures illustrative). You blend the seller's low rate on the large first loan with a higher rate on the smaller second, and the overall cost can pencil out attractively. So the strategy can be strong for the buyer. It just leaves the seller's entitlement tied up unless the buyer substitutes entitlement or the loan gets fully paid off. Assumption rules and second-lien financing vary by servicer, so confirm the current requirements. If you are weighing an assumption, we are happy to run the blended numbers with you on a free Roadmap conversation (about 20 minutes).