Taking over an existing mortgage: who can, how, and what it takes
Can you take over the seller's mortgage?
Desk answer
An assumable mortgage lets a buyer take over a seller's existing loan with servicer approval. FHA, VA and USDA loans are generally assumable; most conventional loans are not, except protected family transfers. The buyer must cover the gap between price and balance, and the seller needs a written release of liability.
Last reviewed against the primary sources listed below.
ToolAssumability checkScreen a loan.GuideWhat assumable meansWhat assumable means.GuideWhich loans allow itWhich loans allow it.GuideEquity gapCovering the equity gap.GuideVA entitlementVA entitlement and assumptions.GuideRelease of liabilityRelease of liability.GuideFamily transfersFamily transfers.New guideHow long it takesWhat drives the timeline for assuming a seller's mortgage.New guideAssumption feesThe fees and costs that come with assuming an existing mortgage.GlossaryKey termsPlain definitions with sources.GuideCredit reviewWhat servicers usually review before approving an assumption.GuideSubject-to dealsWhy a formal assumption differs from taking over payments informally.PrintableLender questionsQuestions to bring to any lender, ready to print.
Rules come from the loan
See HUD's FHA handbook and your loan documents.