Assumable Mortgage: What You Need to Know in 2026

The assumable mortgage is the greatest money-saving opportunity homeowners have ever had, but few know about them or understand how they work. We're on a mission to change that with Assumable — the nation's first platform that lets anyone find and buy homes with assumable mortgages nationwide.

If you felt like you missed the boat on those historically low 2-4% mortgage rates of the early 2020s, an assumable mortgage allows you to keep that existing interest rate on a home by assuming the existing mortgage when you purchase. This translates to huge savings compared to today's rates. You could potentially save thousands a month on your mortgage payment and hundreds of thousands in interest if you assume the existing loan on a home you want to buy.

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So how can you take advantage of this opportunity if you're a buyer? As a seller, what does it mean for you and your home? And if you're an agent, what do you need to know about assumable loans?

I'm going to explain it all — so here we go.

What is an Assumable Mortgage?

Assumable loans are government-backed mortgages — typically FHA, VA, and USDA. Since 1986, all government-backed mortgages are assumable. This means you can assume the existing mortgage on a home and maintain its existing terms and, most importantly, its existing interest rate.

Assumable mortgages were common in the late 1980s during the last inflationary period in the US. Now that we're in this uncertain time with inflation, higher interest rates, and uncertainty about the economy, the assumable mortgage is the best opportunity for millions of Americans who have been priced out due to higher rates to achieve their dreams of home ownership.

How Does an Assumable Mortgage Work?

You know that you can assume the existing FHA, VA, or USDA mortgage on a home, but how do you actually complete the assumption?

First, you need a signed purchase agreement for the home between the buyer and seller. Once you have the signed purchase agreement, you can work with our team of experts who will help you with your assumption and ensure as smooth a closing as possible.

If you're an agent or doing a private party deal and do not want help with the assumable process, you'll be handling all of the paperwork, liaising with the existing mortgage servicer, and staying on top of them to get the assumption accomplished.

Be very mindful of the different requirements and nuances each lender has around assumptions. If you miss any important information, paperwork, or items from their requirements, you run the risk of the assumption failing — something no parties involved want.

The final step is for us to get assumption approval with the existing lender. Then we help coordinate all of the moving parts directly with the entity performing your closing. With that, congratulations — your assumption is complete!

Keep in mind that the time it takes to complete an assumption varies lender by lender, and the time it takes to close can be protracted if you're working without an expert who ensures you have all your ducks in a row. Right now we're seeing most assumptions close in 30-45 days.

Why Assumable Mortgages?

So why look into assumable mortgages? For me, and millions of Americans, the answer is all about saving money.

Currently, for a $400,000 mortgage at today's rates, your principal and interest payment alone would be over $2,800. If you can assume an existing mortgage at 3%, your monthly payment is only around $1,650.

That difference in monthly payment is the difference between being able to save for retirement, for your children, or for covering the rising costs of today's economy.

The savings are even more shocking when you look at how much you save in interest. For that $400,000 mortgage at today's rates, you'll pay over $600,000 in interest. If you can assume a 3% interest rate, you only pay around $200,000 in interest.

This has huge implications for most Americans — and that's why assumable mortgages make sense for buyers. For sellers, it's about marketability and buyers at the table. You have a huge opportunity to market your home and fetch top dollar with your assumable mortgage.

How Can I Find Homes with Assumable Mortgages?

So now that you know what an assumable mortgage is, how it works, and why you should consider it — how on earth do you find homes with assumable mortgages?

This is why I created Assumable.

When I began my assumable mortgage journey, there was no way for someone to easily find homes for sale with assumable mortgages — until now.

With Assumable, anyone in the United States can freely search for active assumable listings near them. You can search for assumable mortgage listings near you, just like you're used to doing on your own. It shows you the estimated interest rate on the home, the estimated payment, and potential interest savings if you go through with a loan assumption.

After you've verified the information we provide, we can help you or your agent with your assumption. If you don't have an agent, we can connect you with one of our Assumable agent partners who will help guide you through your home assumption.

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