Loan Assumption

Take over the seller’s existing mortgage at their original rate and terms. When rates are high, assuming a low-rate FHA or VA loan saves thousands.

Key Features

• Assume the seller’s existing FHA or VA mortgage
• Keep the seller’s lower interest rate and remaining term
• FHA: anyone who qualifies can assume (with lender approval)
• VA: veteran or non-veteran can assume (veteran’s entitlement affected)
• Must qualify with the current lender (income, credit, DTI)
• Pay the difference between purchase price and remaining loan balance
• Conventional loans are generally NOT assumable

Who Is This For?

• Buyers when current rates are significantly higher than the seller’s rate
• VA or FHA borrowers selling to buyers who want their rate
• Buyers who can cover the equity gap (cash or second mortgage)

Florida-Specific Considerations

• Florida’s post-2020 FHA/VA loans at 2.5-4% rates are highly assumable
• Equity gap often substantial due to FL appreciation (may need second mortgage)
• Assumption processing takes 45-90 days (longer than standard purchase)
• Florida doc stamp tax may apply differently on assumption vs new loan