Taking over an existing mortgage: who can, how, and what it takes
What assumable means
Desk answer
An assumable mortgage lets a buyer take over the seller's existing loan, keeping its terms and remaining balance, instead of getting a new loan. The servicer usually must approve the buyer. The buyer pays the seller the difference between the price and the loan balance, often called the equity gap.
Last reviewed against the primary sources listed below.
Three parts
- Servicer approval of the buyer.
- Covering the equity gap.
- Releasing the seller from liability.
Assumption questions
Can any mortgage be assumed?
No. Many conventional loans have due-on-sale clauses; government-backed loans are often assumable with approval.