Question 1

What is an assumable mortgage?

Accepted Answer

An assumable mortgage lets you take over the seller’s existing loan, including their interest rate. Instead of getting a new loan at today’s 6%+ rates, you step into their 2-3% rate. Fully legal, lender-approved, loan transferred into your name.

Question 2

Which loans are assumable?

Accepted Answer

FHA and VA loans are assumable by law. That covers millions of homes. USDA loans generally cannot be assumed at the seller’s original rate, and conventional loans generally are not assumable. About 1 in 5 homes on the market right now has an assumable loan attached.

Question 3

Do I have to be a veteran to assume a VA loan?

Accepted Answer

No. Non-veterans can assume VA loans. The seller leaves their VA entitlement with the property. About 10-20% of VA sellers say yes to non-veteran assumptions, and we maintain a list of those ‘hand raisers’ so you don’t have to guess.

Question 4

What’s the equity gap and how do I cover it?

Accepted Answer

The equity gap is the difference between the home’s price and the remaining loan balance. Basically what the seller has already paid down. You cover this at closing. Options: cash savings, gift funds, HELOC, personal line of credit, or our partner lender who puts up the rest if you bring 5% down.

Question 5

How long does the process take?

Accepted Answer

45-90 days on average, a bit longer than a normal closing. Some servicers move faster (30 days is possible). The bank will add friction because they’d rather get the low-rate loan off their books. That’s why we use assumption processors who know how to push it through.

Question 6

How much can I actually save?

Accepted Answer

On a $400,000 home: a 2.75% assumed rate = $1,635/month. Today’s 6.14% rate on the same home = $2,432/month. That’s $797/month less, $9,564/year, $287,000 over 30 years. Run the numbers for yourself with the calculator above.

Question 7

What does it cost to work with you?

Accepted Answer

Nothing out of pocket in most cases. We get paid by the seller (standard real estate commission) and succeed about 90% of the time in getting the seller to cover our fee. You pay closing costs ($3,000-$5,000 typical) and the equity gap. That's it.

Question 8

Do I need a down payment for an assumable mortgage?

Accepted Answer

Not a traditional down payment, but you do need to cover the equity gap. If a home is worth $400K and the remaining loan is $300K, you need $100K to bridge that gap through cash, a second mortgage, or other financing.

Question 9

Is this too good to be true?

Accepted Answer

Rates were declining for 40 years. Assumables became irrelevant. People forgot they existed. Then rates shot up and suddenly these 2-3% loans from 2019-2022 are worth their weight in gold. They were always there. The comeback tour is just getting started.

	Assumable Mortgage	New Loan at 6.5% (5% down)
Interest Rate	2.75%	6.14%
Monthly Payment	$1,635	$2,432
Monthly Savings	$797	N/A
Annual Savings	$9,564	N/A
30-Year Savings	$287,000	N/A
Down Payment	Equity gap (often under $30K)	5% = $20,000

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