Seller eligibility screen
Is My Loan Assumable?
Use this preliminary review before treating the mortgage attached to your home as a marketing asset. The servicer and applicable program make the final determination.
1. Identify the program
VA, FHA, and USDA loans may be assumable in qualifying circumstances. Most conventional
fixed-rate mortgages are not freely assumable.
2. Confirm the loan is current
Late payments, partial claims, modifications, subsidy balances, or other servicing issues can affect the transfer and amounts due at closing.
3. Document the financial benefit
Collect the current rate, unpaid balance, principal and interest payment, mortgage insurance or annual fee, and remaining term.
4. Call the servicer
Ask for the assumption department, buyer qualification standard, fees, required forms, expected timeline, and written seller release process.
5. Measure the buyer equity gap
Subtract the loan balance from the expected price. Buyers must understand the cash or permitted separate financing needed.
6. Protect VA entitlement
Veteran sellers should determine whether entitlement substitution is required and what remains encumbered without substitution.
Educational information only. Inventory, rates, balances, eligibility, financing, fees, timelines, and approval must be verified for the specific property and borrower.
