Why Sellers Should Market Their Assumable Loan

If you bought your home between 2019 and 2022 with an FHA, VA, or USDA loan, you have something most sellers don't: a mortgage rate between 2% and 4%. And that rate is your single biggest marketing tool.

Here's the thing most sellers don't realize: your low-rate mortgage is assumable. A buyer can take over your existing loan at your rate. In a market where new mortgages are at 7%, your 2.75% rate is worth tens of thousands of dollars to the right buyer.

The Math From the Buyer's Perspective

Let's say your loan balance is $340,000 at 2.75%. A buyer looking at your $450,000 home has two options:

Option A: New mortgage at 7% = $2,844/month

Option B: Assume your loan at 2.75% = $1,556/month

That's a $1,288 difference. Per month. For 25 years.

When a buyer can save $1,288/month by buying YOUR home versus a comparable one down the street, which home do you think they're going to choose?

More Buyers = Better Offers

When you market your assumable loan, you expand your buyer pool significantly. Here's why:

Buyers who couldn't otherwise afford the payment. At 7%, a $450K home requires about $2,844/month. Some buyers can't qualify at that payment. But at $1,556/month? Suddenly they qualify. You just opened your home to buyers who were priced out of comparable properties.

Investors looking for cash flow. Real estate investors love low-rate financing. A rental property with a 2.75% mortgage has dramatically better cash flow than one at 7%. Investor buyers are often willing to pay more because the financing makes their numbers work.

Buyers relocating from high-rate markets. People moving to Colorado from more expensive markets are blown away by assumable rates. They're motivated and well-funded.

More interested buyers typically means more offers. More offers means higher sale prices.

The Price Premium

I've seen it firsthand: homes with prominently marketed assumable mortgages can command a premium. Buyers are willing to pay $10,000-$30,000 more for a home with a 2.75% assumable rate versus a comparable home without one.

Why? Because the rate has value. A buyer who saves $1,288/month is happy to pay $20K more on the purchase price. They're still coming out massively ahead over the life of the loan.

Smart sellers understand this. Your rate isn't just a feature. It's a financial asset that increases your home's market value.

How to Market It

1. Put it in the listing. "Assumable 2.75% FHA mortgage available." This should be in the first line of the listing description, not buried at the bottom.

2. Highlight the savings. "Buyer saves $1,288/month vs. current market rates." Specific numbers grab attention.

3. Create a comparison sheet. Show the buyer's payment with the assumption vs. a new mortgage. Make the math impossible to ignore.

4. Tell your agent. Make sure your listing agent understands assumptions and is comfortable explaining the process to buyer's agents. If they're not, find an agent who is.

5. Use social media. Posts about assumable rates get attention because the savings are so dramatic. The numbers do the marketing for you.

What It Costs You as a Seller

Here's the part you'll love: it costs you nothing to offer a loan assumption. Zero.

The buyer pays the assumption fee. The buyer pays the processor fee. The buyer covers all closing costs related to the assumption. You walk away with your equity just like a normal sale.

Your only consideration is the timeline. Assumptions take 45-90 days to close versus 30-45 for a traditional purchase. But that extra few weeks is a small price for potentially getting a higher sale price and more buyer interest.

VA Sellers: The Entitlement Question

If you have a VA loan, there's one additional consideration. If a non-veteran assumes your loan, your VA entitlement stays tied to that loan until it's paid off. This means you can't use that entitlement for another VA loan.

Some sellers are fine with this (they don't plan to use VA again, or they have bonus entitlement). Others prefer a veteran buyer who can substitute their own entitlement.

Either way, you're not losing your entitlement. It's just tied up temporarily. And for many sellers, the benefit of a faster, higher-priced sale outweighs the temporary entitlement tie-up.

The Alternative: Selling Without Marketing the Assumption

You can absolutely sell your home without mentioning the assumable loan. The buyer gets a new mortgage, you close normally, done.

But you're leaving money on the table. Your 2.75% rate is attracting zero additional buyers. You're competing with every other $450K home in the neighborhood, none of which have a rate advantage.

In today's market, differentiation matters. Your assumable mortgage differentiates your home from every comparable listing. Use it.