With an assumable mortgage, you take over the seller's existing loan, including its interest rate and the years left on it, instead of starting a new loan at today's terms. For the right buyer, that can mean a noticeably lower monthly payment.
Which homes qualify?
Look for homes with FHA or VA loans. Both are generally assumable for a buyer who qualifies, and you don't have to be a veteran to take over a VA loan. Some USDA loans also qualify. Most conventional loans do not.
The steps
- Find the home. Assumable loans are rarely highlighted in listings. I check for them across the Phoenix area every week.
- Plan for the gap. You pay the seller the difference between the price and the remaining loan balance, using cash or, in some cases, a second loan.
- Get approved by the servicer. They review your credit, income and debts.
- Allow extra time. Assumptions can take longer than a regular loan, so we build that into the contract.
Good to know
- FHA mortgage insurance rules carry over to you.
- Expect normal closing costs, and possibly an assumption fee.
- On homes that have gained a lot of value, the gap can be large, so check your numbers early.
Start with my assumable mortgage page.
Want a list of assumable homes?
I'll send current assumable listings that match your budget and area. Call or text Terry Day, REALTOR® with DeLex Realty, at 602-483-4665.
I'll send current assumable listings that match your budget and area. Call or text Terry Day, REALTOR® with DeLex Realty, at 602-483-4665.
Terry Day, REALTOR®, DeLex Realty, 10115 E Bell Rd, Ste 105, Scottsdale, AZ 85260. General information only, not legal or financial advice. Your lender and the loan servicer have the final word on approval and terms.