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Assumable Mortgage


What is it?

An assumable mortgage is one where you take over the existing loan from the current borrower. Essentially, a homebuyer taking over the home seller’s mortgage.

What does this mean?

The homebuyer will have the same terms and conditions, mortgage rate, remaining repayment period and mortgage balance.

Why get an assumable mortgage?

This may benefit you if you want to lock in a rate in the current market.

Pros vs Cons

Some pros of assuming a mortgage would be: low interest rates, capped closing costs, and long-term savings.


On the other hand, some cons of assuming are: higher downpayment, high mortgage insurance premiums (unless it is a VA loan). Frequently Asked Questions Can any loan be assumed?

  • Not all loans have assumable mortgages. FHA, USDA, and VA loans can while conventional can not be assumed.

Do I need to put a downpayment?

  • Generally, yes. This downpayment may vary from the typical downpayment percentage.

How do I qualify for a mortgage assumption?

  • The same way as a typical loan! You will have to fill out an application and get approved for the mortgage after a lender has reviewed your credit, debt-to-income, downpayment, income, and assets.


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