Assuming a mortgage is an excellent option for homebuyers looking to take over an existing mortgage’s terms. You could end up saving money through lower interest rates that you secure in the process. But how exactly do you assume a mortgage, and what is the process involved?
Assumption Solutions guides you through everything you need to know about assuming a mortgage, including where to find assumable mortgage listings and the types of mortgages available for assumption. We offer assumable mortgage services in all 50 states.
Assumable Mortgages Explained So Anyone Can Understand
Think of an assumable mortgage as a special deal when someone wants to buy a house. Imagine having a toy you really like, but you want to give it to your friend. Instead of your friend buying a new toy, they can just take over your toy and all the fun things that come with it.
Assuming a mortgage helps buyers save money and makes it easier to buy a house by taking over someone else’s loan instead of starting fresh. You “assume” the current homeowner’s mortgage, keeping the same interest rate, loan balance, and repayment schedule.
Know That Not All Mortgages Are Available for Assumption
Not all mortgage loans can be assumed. Usually, special government loans, like VA or FHA loans, can be assumed. Assumable mortgages are like special toys that come with their own set of rules, but each has some unique benefits — especially for our nation’s military veterans.
Types of Assumable Mortgages
VA Assumable Mortgage
VA assumable mortgages are one of the most popular types. Veterans or active military personnel with VA loans can pass their mortgages to buyers, who can take advantage of the favorable terms, often including lower interest rates and no down payment requirements.
FHA Assumable Mortgage
Another option for buyers is an assumable FHA mortgage. These loans, insured by the Federal Housing Administration, are easier to qualify for, even for buyers with lower credit scores. Assuming an FHA mortgage can help secure lower rates and favorable terms.
USDA Assumable Mortgage
USDA assumable mortgages are available for homes in designated rural areas. These loans, backed by the U.S. Department of Agriculture, often come with attractive terms and require no down payment. Eligible buyers can assume these loans, keeping the existing low rates intact.
Basics of What to Know When You’re in the Market for an Assumable Mortgage
Wondering how to assume a mortgage? The bottom line of what you need to know is easy when you break it down. We understand that any time you want to buy a home, the process can be overwhelming, not to mention when you’re assuming a mortgage from someone. Here’s how to know what to expect during the process:
Taking Over the Mortgage Loan
When someone sells their house, they might have a loan or mortgage to help pay for it. An assumable mortgage means the buyer can take over that loan instead of getting a new one.
Seeing Lowered Payments
Home buyers can save money if the seller’s loan has a lower interest rate (the extra money you pay back). You get to lock it in for smaller monthly mortgage payments.
Qualifying for the Deal
Just because someone wants to take over the loan doesn’t mean they can. They still need to show they can pay for it through documentation to qualify.
Paying Some Extra Money
Sometimes, the buyer has to pay the seller extra money if the house is worth more than the loan. If the home is super popular, you might have to give more of an incentive to get it.
How We’ve Helped Homebuyers Save When Assuming a Mortgage
Assumption Solutions works with eager homebuyers to provide the guidance and reassurance you need to make your dreams a reality. The advantages speak for themselves, especially when saving you money now and in the future.
Low Interest Rates
We show you how an assumable mortgage could offer you a lower interest rate than what’s currently available, allowing you to save big on interest costs over your loan’s lifespan.
Avoid Appraisal Fees
You generally won’t need an appraisal or have to pay for it. We’ll show you how the approval process for assuming a mortgage is more straightforward than applying for a whole new loan.
Less Closing Costs
We can help you avoid or enjoy reduced closing costs compared to a new mortgage loan. You can also save on other typical closing expenses that you can put into your new property.
Complete the Process for a Smart Financial Move for Your Family’s Future
Buy smarter in a high-interest rate environment with an assumable mortgage home. The process of how you end up with the keys to your new home in your hand will likely follow these steps:
Step 1: Determine Loan Eligibility
First, check if the mortgage is assumable. Remember, FHA, VA, and USDA loans are assumable, while conventional loans usually are not.
Step 2: Engage Assumption Solutions
Once you’ve identified an assumable mortgage, reach out to us. We’ll guide you through the entire process, from initial consultation to completion.
Step 3: Qualify for the Loan
To assume the mortgage, we’ll help you prepare to meet the lender’s requirements. This typically involves a credit check, income verification, and employment history review.
Step 4: Cover the Equity
If the home’s value exceeds the remaining loan balance, we’ll show you options to explore to cover this equity gap through cash payment, a second mortgage, or a home equity loan.
Step 5: Complete the Assumption Process
Once approved, we’ll coordinate a smooth closing process to sign paperwork, transfer the mortgage, and you’ll pay our assistance fee ($50 due at first meeting, $700 after approval).
We Show You the Benefits of Savings and Peace of Mind
As complex as assuming a mortgage can sound, you’re not alone. It’s what we do at Assumption Solutions, providing services and resources specifically for homebuyers like you who want to make a purchase anywhere in the United States.
The benefits of teaming up with a professional specializing in assumable mortgage services are some you won’t want to pass up — whether this is your first home purchase or additional property. Your partnership with Assumption Solutions gives you peace of mind and access to:
- Expert guidance throughout the mortgage assumption process
- Assistance with completing eligibility determination and paperwork
- Coordination with all parties involved (sellers, lenders, real estate agents)
- Potential to keep more money in your bank account for home improvements
Assumption Solutions is Making a Difference in People’s Lives
Our testimonials from real clients highlight what we do to help make a difference in their lives, leading to a new home and a space to call your own. See what they’re saying:
“Assumption Solutions, and especially our loan officer, were deeply knowledgeable about the VA loan assumption process. We were able to close on our loan in just over two months. They are priced fairly for their services, and I would recommend them to anyone going through their first assumption.” – Evan A.
“I am incredibly thankful to have had Assumption Solutions guide me through the complicated and often frustrating loan assumption process. They were instrumental in helping me navigate the challenges posed by the lender and underwriters. They provided me with calm and insight to make all the difference.” – Mark. B
This was my first experience with an assumable loan, and it was great, fast, and productive with Assumption Solutions! I’m thankful for having them on my side during the mortgage assumption process, that can be long and tedious. The team made every effort to ensure things moved forward quickly.” – Alisha J.
How Soon Can I Assume a Mortgage?
You went from how do I assume a mortgage, to how soon can it be done. Keep your momentum moving, and begin the process today. How long it takes to get an assumable mortgage depends on when you take the first step by reaching out to Assumption Solutions. From there, it’s up to our team of professionals to ensure you stay on track to achieve your goals with knowledgeable assistance and dedicated persistence that pays.
