Buy the house and the seller's 3% mortgage.
Millions of government-backed loans written between 2015 and 2022 can be legally taken over by a qualified buyer — at the original interest rate. AssumeRate finds those listings and shows exactly what the lower rate is worth every month.
Assumable listings
What is a low rate actually worth?
Compare taking over an existing mortgage against financing the same home at today's rate. Principal and interest only — taxes, insurance and mortgage insurance are excluded.
Side by side
How taking over a mortgage works
An assumption is a lender-approved transfer of the existing note. You qualify with the servicer instead of originating a brand-new loan, and the rate, term and remaining balance come with the house.
Confirm the loan is assumable
FHA, VA and USDA loans are assumable by rule. Most conventional fixed loans are not, though some ARMs allow it. The listing agent or servicer can pull the note language.
Qualify with the servicer
You submit income, credit and asset documents to whoever services the loan. Expect 45–90 days — servicers process assumptions far less often than new loans.
Cover the equity gap
You owe the seller the difference between the price and the loan balance. That gap can be paid in cash, gift funds, or bridged with a second mortgage or seller financing.
Close and take over payments
At closing the note transfers to you at the original rate. On a VA loan, ask about substitution of entitlement so the seller's VA benefit is restored.
Which loans can be assumed
FHA Assumable
Any owner-occupant who meets FHA credit and debt-to-income guidelines can assume. Mortgage insurance carries over with the loan.
VA Assumable
Open to veterans and non-veterans alike, but the seller's entitlement stays tied up unless a qualified veteran substitutes theirs. Funding fee is typically 0.5%.
USDA Assumable
Allowed on eligible rural properties when the new buyer meets USDA income limits and occupancy rules for that county.
Conventional Rarely
A due-on-sale clause blocks assumption on nearly all conventional fixed loans. Some adjustable-rate notes permit a one-time transfer.
Get new assumable listings first
Assumable inventory moves fast because the rate is the product. Tell us your market and we'll line up matches for you to review.
Questions buyers ask
Do I still need a down payment?
Not in the traditional sense — you need to cover the equity gap, which is the sale price minus the remaining loan balance. On an older loan that gap can be larger than a normal down payment, which is why many assumptions pair with a second mortgage or seller carryback.
Does my credit get checked?
Yes. The servicer underwrites you against the original program's guidelines — credit score, income documentation and debt-to-income ratio. Assuming a loan is not a way around qualifying.
How long does an assumption take to close?
Plan on 45 to 90 days. Servicers have small assumption departments and the file often sits in queue. Build a longer contract timeline and a firm extension clause.
What are the closing costs?
Usually lower than a new origination. Expect a servicer assumption fee (commonly capped around $900 on FHA), title and escrow charges, and on VA loans a 0.5% funding fee. There are no new origination points or discount points on the assumed balance.
Can an investor assume a loan?
Generally no for FHA and USDA, which require owner occupancy. VA assumptions also expect the buyer to occupy the home. Filter for owner-occupant eligibility before you write an offer.
Where does this listing data come from?
The listings on this page are illustrative examples used to demonstrate how assumption math works, not live MLS inventory. Always verify the loan balance, rate, remaining term and assumability in writing with the servicer before making an offer.