Can I assume the seller's mortgage when buying a home?

FHA, VA, and USDA mortgages are assumable, while conventional loans generally are not. The buyer must still qualify under the lender's current standards, including credit and debt-to-income checks, and must cover any gap between the purchase price and the remaining loan balance in cash or with a second loan. The payoff can be large: taking over a 2020 to 2022 loan at roughly 3 to 4 percent when today's rates run about 6 to 7 percent can cut a monthly payment by several hundred dollars or more. Assumptions also close for less, typically about $2,000 to $5,000 in closing costs versus $8,000 to $12,000 for a new loan. Roughly 23 percent of all U.S. mortgages carry assumable terms, but most listings never advertise it, so a buyer has to ask whether the loan qualifies and what the current balance and rate are. Julian Cesar asks that question on every tour and can size the equity gap and the monthly savings before you decide.