What Is a Loan Assumption?

Short Answer

A loan assumption is when a new borrower takes over legal responsibility for an existing mortgage, subject to approval.

 

What’s Happening

The assuming party applies for credit review and, if approved, takes over the existing loan terms.

 

What It Means for You

Underwriting approval is required and fees may apply. Not all loans qualify.

 

What You Should Do Next

See: How Do I Take Over (Assume) a Mortgage?

 

Important Information

Regular monthly payments must continue during the review process.

 

Contact Us If

You need help determining eligibility.