Short Answer
A loan assumption allows a new borrower to take over legal responsibility for an existing mortgage. Approval is required and eligibility depends on loan type and investor guidelines.
What’s Happening
An assumption may occur due to purchase, divorce, death of a borrower, or transfer to a family member.
If approved, the assuming party takes over the same interest rate, same monthly payment, and remaining unpaid principal balance.
What It Means for You
Assumptions require a completed application, credit review, income documentation, and closing through a title company or attorney.
The process typically takes 90–120 days once a complete package is received.
Regular monthly payments must continue during review.
Total fees generally range from $1,000 to $4,000 and must be paid at closing.
What You Should Do Next
To begin the assumption process, visit our Get Help page and select the preferred contact option.
We will review eligibility and provide the assumption application package if applicable.
Important Information
Approval is not automatic.
Divorce must be finalized before processing begins.
Not all loans are eligible for assumption.
Payments must remain current during the process.
Contact Us If
You want to remove someone from the loan.
You inherited the home and want to become financially responsible.
You are unsure whether your loan allows assumption.
Comments
0 comments
Article is closed for comments.