Assumable Mortgages

Assumable loans were once quite popular, but not anymore. If you want to find one you'll have to look hard (and think of older homes).

To find out if a loan is assumable : Look to the loan documents to determine if it is assumable by someone else. Then talk to the original lender about specific requirements based on the value of the home.

Assumable loans permit a borrower to take over a loan from another borrower without any change in the loan terms. Such loans still exist but they aren't very common or popular (for buyers) in a low-interest-rate environment. In addition, today's new assumable loans are almost always adjustable rate mortgages.

VA loans made prior to March 1, 1988, can be assumed with no qualifying of the new buyer. If a buyer of an assumed VA loan defaults, the veteran homeowner may be liable for funds.

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