Taking over an existing mortgage: who can, how, and what it takes
Covering the equity gap
Desk answer
Because the assumed balance is usually far below the price, the buyer must bring the difference in cash or with a second loan. Second loans add cost and need the first-lien servicer to accept them. Work out the gap early; it decides whether an assumption is practical.
Last reviewed against the primary sources listed below.
Options
- Savings.
- A second mortgage, if allowed.
- Seller financing, carefully documented.
Assumption questions
Can I finance the equity gap?
Sometimes with a second loan, subject to servicer rules.