Millions of FHA and VA mortgages originated in 2020-2021 at 2.5-3.5% rates are assumable, meaning buyers can take over the seller's loan terms — a massive advantage in today's 6% rate environment.
How Assumption Works
- FHA and VA loans are assumable by qualified buyers
- Buyer takes over remaining balance at original rate
- Savings: $800+/month on a $350K loan at 3% vs 6%
- Gap between assumed loan and purchase price needs financing
The challenge: most sellers don't know their mortgage is assumable, and many lenders make the process difficult. Platforms like Roam and AssumeList now help match buyers with assumable listings.
