A mortgage loan that lets a purchaser of a home assume the obligation of the mortgage already on that house, without any changes to the loan terms. This is possible for loans that do not have a due-on-sale clause, and FHA and VA mortgages (see Glossary for these terms).
A loan in which the lender transfers from the previous owner of the home to the new owner, sometimes at the same interest rate, sometimes at a new rate. An assumable loan can make your home more attractive to buyers when you want to sell. No Terms Listed
(or Assumable Mortgage): An assumable loan is one in which the buyer can take over the existing loan with the original borrower's terms, often without going through the approval process required for an original loan.
Described as a loan (for example, FHA/VA loans) that can be assumed by a subsequent buyer for a minimal assumption fee. This type of loan, which does not include conventional loans), saves thousands of dollars in closing costs and loan origination fees.
A loan that can be picked up by a subsequent buyer for a small assumption fee. It saves thousands of dollars in closing costs and loan organization fees. FHA/VA loans are assumable. Most conventional loans are not.
A loan secured by a mortgage or deed of trust containing no "due on sale" provision. Most pre-1989 FHA loans and pre-1988 VA loans are assumable without qualification. Some newer loans may be assumed with the express permission of the note holder.
Usually for a small assumption fee, a new buyer can take over or assume the loan of the previous homeowner, saving closing cost and loan origination fees. Some are non-qualifying most are through qualification.
A mortgage which can be transferred to another buyer. The lender must approve the assumption of the new buyer, who assumes responsibility for the debt. This generally saves substantial costs of closing a new loan. Assumable mortgage loan that can be transferred to another party. The transferee assumes the debt, but the original borrower is not released from the debt without a legal transfer of debt.