Frequently Asked Questions

A mortgage assumption is the process of transferring an existing mortgage from the property seller to the buyer, who takes over responsibility for the original loan including the interest rate, repayment period, balance, and other terms. Essentially, it’s the same exact loan — now just in your name. 

Not all mortgages can be assumed. Typically, only government-backed loans, such as FHA loans, VA loans, and USDA loans, are assumable. 

No, anyone can assume a VA loan under the right conditions! In addition to qualifying for the original terms of the loan, the VA entitlement used by the original VA borrower would need to remain tied to the loan until it is paid off or refinanced since the the non-VA buyer doesn't have their own VA entitlement to attach to the loan. While it can be challenging to find sellers open to these terms, veteran-to-non-veteran assumptions do happen and our team is prepared to assist with this. 

Like any loan, you will need to meet credit and income requirements for the terms of the loan. However, this is not accomplished through a lender of your choosing. You must apply to assume a loan by submitting an application through the loan servicer who holds the loan on the property you are trying to purchase. Assumable Sales is NOT a lender. However, our assumable experts can assist in the transfer process by keeping all parties on track with the required documents and keeping the pressure on the loan servicer to process the loan in a more timely manner.

We're not going to sugar coat it. The loan assumption process can be time consuming and complex. Typically, it involves submitting an offer on a property to assume the loan, completing the necessary assumption packet from the loan servicer, obtaining loan servicer approval, and finalizing the assumption through a closing and transferring of title. Our team of realtors and assumable experts provide guidance and assistance throughout this process to make it as easy and quick as possible. 

Government guidelines say home loan assumptions should be completed within 45 days of a complete submission, but these are just guidelines. Your assumption can take anywhere between 35/60 days on the fast end and 120+ days on the slow end. Recently, we've started to see improvements with the time to close as we keep track of many different loan servicers and clients' experiences with them. Still, a good rule is to plan for 90 days and work with our team to collect everything needed in a timely manner to streamline the process and prevent additional delays. 

Being turned down by a lender can be a huge disappointment, and it can happen. When working with our assumption team the first task is to understand your situation and goals. The next is to find a property that fits your criteria and vet the transaction to determine the likelihood of assumption success. Because of this, loan assumptions with the assistance of our assumption processor rarely get denied. 

As a seller, you want to sell your home for top dollar. An assumable mortgage can make your property that much more attractive to buyers, especially if the existing loan has a lower-than-market interest rate resulting in a lower monthly payment. This feature appeals to a growing number of rate conscious buyers looking to save money on interest. Advertising your home as an assumable can result in more views, more offers, and higher offers. Our realtors conduct a thorough market analysis to determine these potential benefits for your location. 

This one is easy! Home buyers can significantly benefit from lower interest rates and monthly payments on an assumable mortgage! 

The short answer is No. An assumption can be done between just a buyer and a seller, but the odds of making it to the closing table are much lower due to the additional challenges involved. The reality is that loan assumption is a bit like the Wild West compared to the mainstream real estate market. Guidelines and practices are constantly evolving as banks and the Veteran's Administration realize the growing demand. Many realtors are also unfamiliar with how to properly navigate them. Thus, it's become increasingly important to have the right realtor with the right connections and resources helping you along the way.

Because we are trailblazers and leaders in this space. After starting what's become the largest social marketplace for assumptions, we established a coast-to-coast network of VA realtors with tools to find most on and off market assumable properties. We also work with some of the top assumable home loan experts in the nation to provide additional processing services and support for our clients. Our goal is to provide honest insight and a better opportunity to take advantage of the benefits of loan assumption.

For an FHA or USDA loan assumption the general consensus is NO--not before you have used the property as a primary residence for at least 12 months. For a VA loan assumption, POTENTIALLY YES with certain conditions. Even so, it is ultimately up to the home's loan servicer/lender to allow for it to be assumed with the intention of using it as an investment property. Some are more flexible than others and some have additional overlays to prevent it (such as owner occupancy agreements at closing). That being said, the most consistent condition is that the seller must allow their VA entitlement to remain in place with the loan, similar to when a non-VA buyer wants to assume the loan. In most cases, the owner occupancy requirement must also have been previously met meaning that it was used as a primary residence for typically at least 12 months by the seller prior to being assumed/sold. Other conditions may be lender specific, so it is very important to find out ahead of time, ideally even before making an assumption offer. If your goal is to purchase an assumable to use as an investment property, you will need a competent team to assist you with this. The first step, is reaching out to us so we can connect you with one of our investor friendly realtors to discuss it further.