What is an assumable mortgage?
Assumable mortgage – A mortgage that can be transferred with no change in terms. Most VA/FHA/ & some Adjustable Rate loans are assumable. We have the tools to help you verify if any loan is assumable.
- FHA Assumable Mortgages – All FHA mortgages made after December 14, 1989, can be assumed. All FHA mortgages made before December 1, 1986 are assumable. This means there was only 3 years where FHA mortgages were not assumable. These FHA Mortgages can be assumed with a buyer credit approval. See HUD facts here HUD General Assumption info doc or See page 710 of the FHA Handbook
- VA Assumable Mortgages – Any VA mortgages made before March 1, 1988, is assumable. The buyer must be credit qualified. If the seller is a veteran, they should confirm how this will affect their VA eligibility.
- Conventional/ARM (Adjustable Rate Mortgage) – Adjustable-rate mortgages first appeared in the 1960s but did not gain wide popularity until the 1980s. These Adjustable Rate Mortgages are based on the US Treasury weekly average yield. It includes a 1yr maturity published weekly by the Federal Reserve. Sellers should contact their lender directly to confirm assumability.