A mortgage assumption lets a qualified buyer take over the seller's existing home loan -- keeping the same interest rate, balance, and terms. This can be a great option if the current loan has a lower rate than what's available today.

 

Which loans can be assumed?

Most government-backed loans are assumable, including:

• FHA (Federal Housing Administration)
• VA (U.S. Department of Veterans Affairs)
• USDA (U.S. Department of Agriculture)

Conventional loans are generally not assumable, except in specific cases like inheritance or divorce. 

 

Who can assume a loan? 

To assume a mortgage, you typically need to:

• Qualify based on credit and income, unless it's an exempt situation (like death or divorce)
• Plan to live in the home as your primary residence

 

What are the costs?

Assumptions usually cost less than traditional closings but do require:

• An application and documentation
• Payment of closing costs out-of-pocket
• A down-payment if the seller has equity in the home

 

FAQs about Assumption Loans

Click here to get detailed answers to frequently asked questions about assumption loans. 

 

Ready to learn more?

We're here to help! Contact our Loan Servicing Team at 877-561-0922 or email mortgagehelp@firstunitedbank.com to get started or find out if your loan is eligible for an assumption.