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Assumable Mortgage: How to Take Over a Seller's Loan and Rate
An assumable mortgage lets a qualified buyer take over the seller's existing FHA, VA, or USDA loan — including its remaining balance, term, and interest rate. Here is exactly who qualifies, what an assumption costs, and where the strategy breaks down.
An assumable mortgage is a home loan a buyer can legally take over from the seller, keeping the existing rate and term. FHA, VA, and USDA loans are generally assumable with lender and agency approval; most conventional loans are not because of a due-on-sale clause. The buyer must still qualify and usually must cover the seller's equity in cash or a second lien.
- ✓FHA, VA, and USDA loans are generally assumable when the servicer and the agency approve the new borrower — conventional loans usually are not.
- ✓The buyer takes over the remaining balance, remaining term, and the existing interest rate. The buyer does not get a new rate.
- ✓The buyer must cover the difference between the purchase price and the loan balance (the seller's equity) with cash or separate financing.
- ✓Servicers underwrite assumptions like a new loan: credit, income, assets, and occupancy are all reviewed.
- ✓On VA loans, a non-veteran assumption can tie up the seller's entitlement until the loan is paid off, so entitlement restoration must be planned before closing.
What this means for you: Assumptions can be powerful when the existing rate is well below market, but only if you can fund the seller's equity and pass the servicer's credit review.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
What an assumable mortgage actually is
In an assumption, the buyer is substituted for the seller on the existing note and mortgage. The loan stays in place with its original balance, remaining term, escrow account, and interest rate; only the person legally obligated to repay it changes. Nothing is refinanced, so the buyer does not receive a new rate and the loan does not restart at 30 years.
Whether a loan can be assumed is decided by the note itself. Most conventional loans contain a due-on-sale clause, which lets the lender demand payment in full when the property transfers. Government-insured loans generally allow a formal transfer of liability with approval.
Which loans are assumable
- FHA loans — assumable with the servicer's creditworthiness review and approval. The buyer must intend to occupy the home as a primary residence for loans originated under current FHA rules.
- VA loans — assumable with VA and servicer approval. The buyer does not have to be a veteran, but a non-veteran assumption has entitlement consequences for the seller (below).
- USDA Guaranteed loans — assumable with lender and Rural Development approval, and the buyer must meet the program's income and location eligibility.
- Conventional loans — generally not assumable. Some adjustable-rate notes permit assumption after the fixed period, and the Garn-St Germain Depository Institutions Act (12 U.S.C. 1701j-3) blocks a lender from enforcing due-on-sale for certain family transfers such as inheritance, divorce, or a transfer into a living trust.
The equity gap — the part most buyers miss
An assumption transfers the loan, not the price. If a home is under contract at $450,000 and the assumable balance is $290,000, the buyer must bring $160,000 to closing, either as cash or through separate subordinate financing where the first-lien program and servicer allow it. This is why assumptions of long-held, heavily paid-down loans are often impractical even when the rate is attractive.
VA entitlement — the seller's biggest risk
When a veteran's VA loan is assumed by another eligible veteran who substitutes their own entitlement, the seller's entitlement can be restored. When it is assumed by a non-veteran, the seller's entitlement generally stays tied to that loan until it is paid in full, which can limit the seller's ability to use a VA loan on their next purchase. VA also requires a release of liability, without which the seller can remain contractually responsible. See VA home loan program information and confirm entitlement in writing before closing.
How the assumption process works
Assumptions are processed by the seller's current servicer, not by a new lender. The buyer submits an application package to that servicer; the servicer underwrites credit, income, assets, and occupancy, then issues an approval and an assumption agreement. Timelines are set by the servicer and are frequently longer than a standard purchase because assumption departments are small. Build realistic contract deadlines and extension language with your agent and attorney.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
Costs of assuming a loan
Assumptions usually cost less than originating a new mortgage, but they are not free. Expect a servicer assumption processing fee, agency fees where they apply (VA charges a funding fee on assumptions for most non-exempt borrowers, and a processing charge), title and settlement charges, recording fees, and escrow funding. Because there is no new first-lien origination, an assumption may involve fewer lender charges overall. Actual charges appear on your closing documents.
When an assumption is worth pursuing
The strategy works best when three things line up at once: the existing note rate is meaningfully below current market pricing, the remaining balance is large relative to the purchase price, and the buyer has liquid funds or subordinate financing for the equity gap. If any one of those is missing, a standard purchase loan, a seller-paid temporary buydown, or a permanent buydown often produces a better result.
How Simply Approved Mortgages helps
We are a mortgage broker, so we do not service the loan being assumed. What we do is model the assumption against real financing alternatives side by side, help structure the second-lien or cash strategy for the equity gap where available, and stand ready with an approved backup loan if the servicer declines or the timeline fails. If an assumption is genuinely the cheaper path for you, we will tell you that plainly.
Rates, payments, and cost figures on this page are illustrative and not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
What actually happens when a mortgage is assumed
An assumable mortgage lets a buyer step into the seller’s existing loan instead of originating a new one — but only certain loans allow it, and the buyer still has to qualify.
| What it is | How it actually works | Published by |
|---|---|---|
| Which loans are assumable | FHA-insured and VA-guaranteed loans are generally assumable with lender and agency approval; most conventional conforming loans contain a due-on-sale clause that prevents assumption. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| The buyer still has to qualify | Assuming an FHA loan requires the assuming borrower to meet current creditworthiness standards, including credit, income, and debt-to-income review by the servicer. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| VA assumption and entitlement | A VA-guaranteed loan can be assumed by a qualified buyer, including a non-veteran, but unless the buyer is also an eligible veteran who substitutes entitlement, the seller’s VA entitlement remains tied up in the loan. | U.S. Department of Veterans Affairs, Lender’s Handbook M26-7 |
| Lender and agency approval is required | The servicer must process and approve the assumption; an informal transfer of payments without approved assumption does not release the seller from liability and can violate the note. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| The gap between price and assumed balance | A buyer assuming a loan with a balance below the purchase price must cover the difference in cash or with secondary financing, since the assumption itself does not increase the loan amount. | Lender program guidelines (vary by investor) |
| Release of seller liability | A completed and approved assumption can release the selling borrower from liability on the note; an assumption processed incorrectly may leave the seller obligated even after the sale. | U.S. Department of Housing and Urban Development, Handbook 4000.1 |
| Due-on-sale enforcement on conventional loans | Federal law generally allows lenders to enforce a due-on-sale clause on transfer of conventional mortgaged property, with narrow statutory exceptions such as certain transfers between family members. | Federal Housing Finance Agency |
| Disclosure of assumption terms | An assumption transaction that meets the definition of a covered mortgage transaction is subject to standard Regulation Z disclosure requirements to the assuming borrower. | Consumer Financial Protection Bureau, Regulation Z / TRID (12 CFR 1026) |
Program parameters above are published by the agencies and enterprises named in the right-hand column and can change. They describe program rules, not an offer; eligibility, terms, conditions, and availability vary by borrower, property, lender, loan program, and state, and all loans are subject to lender underwriting and approval.
Why assumptions matter more when rates have moved
An assumable mortgage is only financially interesting when the existing rate is meaningfully more favorable than what a new loan would carry today. In a rate environment where existing FHA and VA loans were originated at levels well below current market pricing, a buyer who can step into that loan is effectively buying below-market financing along with the house — which is why assumption interest tends to rise and fall with the gap between old and new rates, not with any change in the underlying loan products themselves.
The trade-off is that the buyer inherits the seller’s remaining loan balance, not the full purchase price financed at a new rate, so the strategy usually requires either a large cash down payment or a second loan to bridge the difference between the assumed balance and the agreed sale price.
Check where pricing sits before you decide
Review current rate context, then start a request so your own credit, income, and property details drive the numbers. Illustrative only — not a quote or commitment to lend.
The mechanics buyers underestimate
Because the assuming buyer still has to qualify under the servicer’s current underwriting standards, an assumption is not a shortcut around credit and income review — it is a substitute for originating a new loan, not a substitute for underwriting. The process also typically takes longer than people expect, since it runs through the loan servicer rather than a new lender’s streamlined origination pipeline, and servicers do not always prioritize assumption requests the way originators prioritize new applications.
Sellers, meanwhile, need to confirm the assumption is fully approved and their liability formally released before treating the sale as closed in every sense; an incomplete assumption can leave a seller’s name and credit tied to a loan on a home they no longer own.
What the assuming buyer has to document
The buyer taking over the loan is underwritten much like a new borrower, just against the existing note terms.
| Type of income or evidence | How it is documented | Why it works for this product |
|---|---|---|
| Income and employment | Pay stubs, W-2s, or tax returns consistent with standard FHA or VA underwriting documentation. | Assumption approval requires the servicer to determine the new borrower can support the existing payment. |
| Credit history | Standard credit report and score pull by the servicer. | Servicers apply current creditworthiness standards to the assuming borrower, not the original borrower’s history. |
| Funds to cover the equity gap | Bank statements or a secondary financing commitment covering the difference between sale price and assumed balance. | The assumed loan amount is fixed at the seller’s current balance; any gap must be funded another way. |
| VA eligibility documentation (for entitlement substitution) | Certificate of Eligibility for the assuming veteran buyer. | Substituting entitlement is what releases the selling veteran’s entitlement tied up in the loan. |
Documentation requirements vary by lender, program, and file. The list above describes what underwriting commonly accepts, not a determination about your income or your approval.
Assuming a loan versus originating a new one
Assumption is a narrow tool that only makes sense in specific rate and eligibility conditions.
| Option | Usually the better choice when | What you give up |
|---|---|---|
| Assume the seller’s FHA or VA loan | The existing rate is well below current market rates and you can fund the gap between sale price and loan balance. | Longer servicer-driven approval timeline and a fixed loan amount that may require significant cash or second financing. |
| Originate a new mortgage | The seller’s loan is conventional, the rate gap is small, or you need a loan amount closer to full purchase price. | Subject to current market pricing and terms rather than the seller’s existing note. |
A worked illustration of the equity gap
Illustrative only. Not a quote, lock, offer, or commitment to lend; figures are round numbers chosen to show the arithmetic, not an estimate of any actual transaction.
Suppose a home sells for $400,000 and the seller’s existing assumable loan balance is $260,000. The buyer would need to fund the $140,000 difference through cash, a second loan, or a combination of both, in addition to qualifying for and assuming the $260,000 balance on its existing terms.
Illustrative only. Figures are examples used to show the arithmetic and are not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate.
How this applies in Florida and Colorado
Florida. Florida documentary stamp tax and intangible tax still apply to an assumption transaction that transfers or modifies the mortgage, so buyers and sellers should not assume assumptions avoid Florida closing taxes entirely; a title company or closing attorney familiar with assumption filings can confirm the amounts due.
Colorado. Colorado assumptions run through the same FHA and VA servicer channels as anywhere else, but recording and closing practices vary by county clerk and recorder, and Colorado’s active resale market along the Front Range has produced renewed buyer interest in identifying assumable FHA and VA loans listed by sellers who purchased at lower rates.
Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado, so the two applications above are the ones we can act on for a consumer file. Business-purpose loan products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Get a written summary of your options
Tell us the scenario you are working on and a Simply Approved Mortgages Loan Officer reviews it against real program guidelines, with no obligation.
How an assumption typically proceeds
The servicer, not a new originating lender, controls most of this timeline.
- Confirm the loan is assumable. Check whether the existing loan is FHA-insured or VA-guaranteed and review the note for assumption language.
- Contact the servicer. Request the servicer’s assumption package and current requirements, since these are handled outside a typical new-loan application.
- Submit the assuming buyer’s file. Income, credit, and asset documentation go to the servicer for underwriting against current standards.
- Arrange financing for any equity gap. Cash or a second loan to cover the difference between sale price and the assumed balance is arranged in parallel.
- Close and confirm the release of seller liability. Ensure the servicer processes a formal release for the selling borrower once the assumption is approved.
Mistakes that cost people money on this
- Assuming any mortgage can be assumed; most conventional loans cannot.
- Transferring payments informally without processing a formal, lender-approved assumption.
- Underestimating the cash or second-loan financing needed to cover the equity gap.
- Sellers failing to confirm their liability was actually released after the assumption closed.
- Expecting assumption approval to move as quickly as a standard purchase loan.
- Veterans not substituting entitlement when eligible, leaving their VA entitlement tied up in a home they no longer own.
Is this the right move for your situation?
The honest answer depends on the file. These are the patterns we see on both sides.
Usually a good fit when
- The existing loan carries a materially lower rate than current market pricing.
- You can fund the gap between the sale price and the assumed balance.
- You meet FHA or VA underwriting standards independently.
- You are a veteran buyer able to substitute entitlement for a VA loan.
Usually not the right move when
- The seller’s loan is conventional and subject to a due-on-sale clause.
- You need financing close to the full purchase price rather than the lower assumed balance.
- You cannot wait through a servicer-driven approval timeline.
- The rate gap between the existing loan and current rates is minimal.
None of this is a determination about your file. A Simply Approved Mortgages Loan Officer can run your actual numbers and show you what your disclosures would say.
What you can do with this loan
Take over a below-market rate on an FHA, VA, or USDA loan instead of financing at current pricing.
Reduce closing costs compared with originating a brand-new first mortgage.
Buy from a relative or settle a divorce or estate transfer without triggering due-on-sale.
Preserve a low payment on a home you plan to hold long term.
Combine an assumption with subordinate financing to bridge the seller's equity.
Pros & cons — honest tradeoffs
Pros — Pros & cons
- +The existing interest rate and remaining term carry over to the buyer.
- +Often lower total closing costs than a new first mortgage.
- +No new appraisal is required by every servicer, though some order one.
- +FHA assumptions do not restart mortgage insurance on a new schedule.
- +For sellers, an assumable low rate can be a genuine marketing advantage.
Cons / watch-outs — Pros & cons
- −The buyer must fund the full equity gap in cash or with a separate lien.
- −Servicer assumption departments are slow and set their own timelines.
- −Most conventional loans cannot be assumed at all.
- −A non-veteran VA assumption can tie up the seller's entitlement.
- −The buyer inherits the loan as-is, including any mortgage insurance already on it.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
Worked example
How this loan actually works — a full example
A buyer is under contract at $450,000 on a home with an existing FHA loan. The current principal balance is $290,000 with roughly 27 years remaining at a note rate materially below current market pricing. The buyer has $95,000 in liquid funds.
Inputs
- Purchase price
- $450,000
- Assumable FHA balance
- $290,000
- Remaining term
- ~27 years
- Buyer liquid funds
- $95,000
- Equity gap to fund
- $160,000
Calculation
- 1Cash applied to equity gap$95,000
- 2Remaining shortfall$65,000
- 3Options for the shortfallSubordinate financing where permitted, seller credit within program limits, or renegotiated price
- 4Servicer underwritingFull credit, income, asset, and occupancy review by the seller's servicer
- 5Backup planFully underwritten standard purchase approval held in reserve
Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
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15-Yr Fixed · national avg
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2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
Rate travels with the loan
The buyer keeps the seller's existing note rate and remaining term.
Government loans only, mostly
FHA, VA, and USDA are generally assumable; conventional usually is not.
Equity gap is cash
Purchase price minus the loan balance must be funded by the buyer.
Document Checklist for Mortgage Assumption
Gathering these documents up front helps your Simply Approved Mortgages Loan Officer issue a stronger pre-approval and move Mortgage Assumption to Clear-to-Close faster. Actual items required vary by scenario — your loan officer will confirm the final list.
Only the income documents that apply to you are shown. Switch tabs if you have multiple income sources — your loan officer will confirm which apply.
W-2 / Employed Income
- ✓Most recent 30 days of paystubs (all borrowers, all jobs)
- ✓W-2s for the last 2 years (all employers)
- ✓Two-year employment history with employer names, addresses, and dates
- ✓Verification of Employment — written (WVOE) or electronic (EVOE through a third-party payroll service); your loan officer orders it with your signed authorization
- ✓Employment reverification within 10 days before closing — verbal or electronic, required on every file
- ✓Bonus / commission / overtime: 2-year history if used to qualify
- ✓Recent job change: offer letter and first paystub after start date
- ✓Retirees / fixed income: Social Security award letter, pension statements, 1099-R
Assets & Reserves
- ✓Most recent 2 months of bank statements (all pages)
- ✓Most recent quarterly statement for retirement / brokerage / 401(k)
- ✓Gift funds: signed gift letter + donor bank statement + transfer proof
- ✓Large deposit letters of explanation with source documentation
Identity & Residency
- ✓Government-issued photo ID (driver's license or passport)
- ✓Social Security card or ITIN letter
- ✓Two years of residency history with addresses
Credit & Liabilities
- ✓Written credit report authorization
- ✓Letter of explanation for any late payments, collections, or inquiries
- ✓Bankruptcy discharge papers or foreclosure documentation (if applicable)
- ✓Child support / alimony order (if paying or receiving)
- ✓Divorce decree / separation agreement (only if applicable)
Property & Purchase
- ✓Fully executed purchase contract with all addenda
- ✓Earnest money deposit receipt + source of funds
- ✓Homeowners insurance quote (binder before closing)
- ✓HOA / condo questionnaire and dues statement (if applicable)
Educational checklist only. Not a commitment to lend and not a complete list of conditions. Documentation requirements are governed by agency guidelines (Fannie Mae Selling Guide, FHA Handbook 4000.1 incl. Update 18 (August 12, 2026), VA Lender's Handbook, USDA HB-1-3555) and individual investor overlays. Your Simply Approved Mortgages Loan Officer will provide your specific document list based on your scenario.
Credit Reports and Credit Monitoring for Mortgage Assumption
Credit is one of the four underwriting buckets every lender reviews — and one of the few you can actively improve before you apply. Monitoring your credit throughout the process helps you catch errors, fraud, and score changes early, which protects your approval timeline and your rate.
Ordering Credit for Your Pre-Approval File
Once you sign your loan application (Form 1003) and disclosures, your Simply Approved Mortgages Loan Officer orders a tri-merge residential mortgage credit report (RMCR) from Equifax, Experian, and TransUnion. This is a hard inquiry, but FICO's model treats mortgage inquiries within a 45-day window as a single event, so shopping lenders during that window will not stack on your score.
- What we need from you: signed borrower authorization, government-issued photo ID, Social Security number (or ITIN), and current address.
- What the report shows underwriters: middle FICO score, open tradelines, minimum payments, late history, collections, public records, and recent inquiries.
- How long it's valid: 120 days for conventional loans and for FHA/VA/USDA (HUD guidelines, VA Lender's Handbook Ch. 4). Older reports must be re-pulled before closing.
- Rapid rescore: if a legitimate error is on your report, we can request a rapid rescore in 3–7 business days after you supply documentation from the creditor.
This link redirects to our third-party credit vendor's payment portal. You pay the report fee directly so we can pull your tri-merge credit report for your pre-approval file. A credit pull is required for underwriting; this is not a commitment to lend.
Review and Monitor Your Credit at MyITINCredit.com
Before we pull your file, review and monitor your credit at MyITINCredit.com. Their $1 promotional trial gives you tri-bureau visibility plus ongoing credit monitoring so you can catch changes, disputes, or new accounts as they appear — not after they've already delayed your loan.
- Verify accuracy: confirm names, addresses, SSN/ITIN, and every open account belong to you.
- Dispute errors: the Fair Credit Reporting Act gives you the right to dispute inaccurate items directly with the bureau — no charge.
- Address collections and charge-offs: a settled or paid collection can be documented in advance so it does not stall underwriting.
- Pay down utilization: credit-card balances reported below 30% of the limit typically produce the strongest scores.
- Avoid new credit: do not open new cards, finance a car, or co-sign for anyone from now through closing.
- Monitor continuously: credit monitoring alerts you to new inquiries, balance changes, and potential identity theft while your loan is in process.
MyITINCredit.com is a service operated by Simply Approved Corporation (a DBA of that entity), which is the parent company of Simply Approved Mortgages LLC. Simply Approved Mortgages may receive subscription revenue if you choose to enroll. Credit monitoring through MyITINCredit.com is optional and is not required to apply for or obtain a mortgage with us. Promotional pricing, trial terms, and monitoring features are set by MyITINCredit.com and subject to change.
Why credit monitoring matters during a mortgage — A single new collection, missed payment, or unauthorized inquiry can change your qualifying score or trigger additional underwriting conditions. Typical minimum scores* — Conventional 620, FHA 580 (3.5% down) or 500 (10% down), VA no HUD minimum (most lenders 580–620), USDA typically 640, Jumbo 680–740, Doctor Mortgage 680–700+, Non-QM/DSCR varies by program, ITIN 620–680 alternative credit. Investor and lender overlays apply; individual results vary. Not a commitment to lend.
Cost and payment tools
Run your payment, affordability, closing cost and refinance numbers
Monthly payment, affordability, closing costs, refinance break-even and early payoff, all on one screen. This page is not written for one state, so property tax, insurance and transfer or recording charges start at neutral placeholder assumptions rather than published averages — Transfer, documentary-stamp and recording charges are set by your state and county — enter your own figure, or open the state page for a sourced seed. Insurance and tax assumptions vary widely by state, county and property, so replace these starting values with quotes for your address. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend.
Your inputs
Estimated result
- Down payment
- $20,000
- Loan amount
- $380,000
- Principal & interest
- $2,402
- Property tax
- $333/mo
- Homeowners insurance
- $167/mo
- Estimated total monthly
- $2,902/mo
Reference sources: Tax Foundation — property taxes paid as a percentage of owner-occupied housing value, NAIC — Homeowners Insurance Report, CFPB — Understanding your Loan Estimate.
Assumptions, methodology, and limitations
Principal and interest use the standard amortization formula on the loan amount you enter. This page does not target a single state, so the property tax and insurance fields start at neutral placeholder assumptions rather than published averages — replace them with figures for your own address, or open the matching state page for sourced seeds. Closing costs apply your state's transfer / documentary-stamp practice (0.00% of price used as the buyer-side seed) plus typical title, recording, appraisal, credit and prepaid escrow lines. Refinance break-even divides your entered costs by the monthly payment difference. Early payoff runs a month-by-month amortization with your extra principal.
These tools do not include mortgage insurance, funding or guarantee fees, HOA special assessments, flood or windstorm premiums, seller credits, lender credits, discount points, or county and municipal charges specific to your parcel. Statewide averages will not match any individual property. Figures are estimates only.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Turn these estimates into real numbers
Send your scenario to a Simply Approved Mortgages Loan Officer and get a written summary back, or compare where rates sit today. Educational only — not a quote, lock, offer, approval, or commitment to lend.
Assumable mortgage FAQs
Answers to the most common assumable mortgage questions, written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Sources & Citations
- U.S. Department of Housing and Urban Development — HUD Handbook 4000.1 — FHA loan assumption eligibility and creditworthiness review.
- U.S. Department of Veterans Affairs — VA Lender’s Handbook M26-7 — VA loan assumption and entitlement substitution rules.
- Consumer Financial Protection Bureau — Regulation Z (12 CFR 1026) — Disclosure requirements applicable to assumption transactions.
- State of Florida — Florida documentary stamp tax — Tax treatment of mortgage transfers and assumptions.
Sources: government and agency publications listed above. Simply Approved Mortgages LLC is not affiliated with, endorsed by, or sponsored by HUD, FHA, VA, USDA, or any government agency. Program rules change; the published source text governs.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
HUD
HUD — FHA Single Family Housing Programs
VA
VA — Home Loan Types and Program Rules
USDA
USDA Rural Development — Single Family Housing Guaranteed Loan Program
CFPB
CFPB — Understanding Loan Options
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the mortgage library library
This page sits inside our Mortgage library coverage.
What most readers open next
- Every loan program we arrangeBecause to see which program this topic applies to.
- The loan program comparisonBecause to place this topic against the alternatives.
- How underwriting reviews a fileBecause the standard most rules serve.
- The payment calculatorBecause to turn the rules into a monthly figure.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
FHA Loans
The most commonly assumed loan type in the US.
Read the guide →Guide
VA Loans
Entitlement, funding fee, and assumption rules.
Read the guide →Guide
USDA Loans
Rural program eligibility and guaranteed loan rules.
Read the guide →Guide
Temporary Buydown
A common alternative when an assumption is not workable.
Read the guide →Guide
Second Mortgage
One way buyers bridge the seller equity gap.
Read the guide →Guide
Mortgage Pre-Approval
Keep a backup approval ready while an assumption is processed.
Read the guide →Guide
VA Loans
Eligibility and entitlement rules underlying VA loan assumption.
Read the guide →Guide
Closing Process: What to Expect
How closing differs on a loan assumption versus a new purchase loan.
Read the guide →Guide
FHA Loans
How FHA underwriting and insurance requirements work generally.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
Purchase mortgages
Buying a home
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Complete this short request and a Simply Approved Mortgages Loan Officer will personally review your scenario. The form only asks what your program actually needs. Submitting it is not an application for credit and is not a commitment to lend.
What are you looking to do?
Pick one — the form adapts.Pick a loan type
Programs for buying a home.Conventional loan — 3–20% down · 620+ FICO
Tell us about your scenario
The form below is tailored to Conventional loan — only the questions and documents your program needs.
Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
Purchase price and down payment help us size the conforming loan.
A range is enough here — no credit report is pulled and your credit is not affected.
Illustrative estimate only — not a quote, rate lock, offer of credit, or commitment to lend.
Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
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- 1Sign in to your Google account and search a mortgage topic such as "mortgage rates".
- 2Select the icon next to "Top stories" to open the preferred sources panel.
- 3Search for Simply Approved Mortgages, tick the box, and save.
Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.
Simplify Your Mortgage Journey with These Resources
Talk To A Loan Officer
A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your options.
Mortgage insights & guides
Plain-language articles to help you understand the home loan process, save on closing costs, and make confident decisions.
7 things every first-time homebuyer should know before applying
From credit prep to down payment assistance, here’s how to walk into your first mortgage application with confidence.
Using your VA loan benefit: a step-by-step guide
Eligibility, the Certificate of Eligibility, funding fees, and how to maximize zero-down purchasing power.
Where your closing costs actually go (and where you can save)
A line-by-line breakdown of the Loan Estimate and the fees that are negotiable versus fixed.
Equal Housing OpportunityMortgage Broker — Not a LenderNMLS ID# 2620881NMLS Consumer AccessFlorida Mortgage Broker License #MBR7685Colorado Mortgage Company RegistrationLicensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.
Mortgage products. FHA, VA, USDA, conventional, jumbo, non-QM, HELOC, reverse mortgage, down-payment-assistance, investment-property, DSCR, and other mortgage products referenced on this site are subject to their individual eligibility, underwriting, property, occupancy, and program requirements. Product availability varies by lender and jurisdiction. References to a mortgage product or program do not constitute a determination that a borrower or property qualifies.
Government-backed programs. Government-backed or government-insured mortgage programs referenced on this site may be subject to requirements established by the applicable government agency in addition to lender requirements. Government insurance or guaranties generally protect participating lenders against certain losses and do not constitute a guarantee of borrower approval.
Business-purpose products. DSCR, investment-property, and other business-purpose mortgage products referenced on this site are intended for qualifying business-purpose transactions. Business-purpose loans may be subject to different requirements and protections than consumer-purpose residential mortgage loans. Borrowers are responsible for accurately disclosing property occupancy and intended use.
Down payment assistance. Down payment or closing-cost assistance programs referenced on this site may be administered by governmental entities, housing finance agencies, nonprofit organizations, lenders, or other third parties. Program availability, funding, assistance amounts, eligibility requirements, repayment or forgiveness provisions, and other terms vary and may change or become unavailable without notice. Listing or referencing a program does not guarantee funding, eligibility, or mortgage approval.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, or any other federal, state, or local government agency. References to government agencies, programs, benefits, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, investment, estate-planning, or individualized government-benefits advice. Consumers should consult appropriate qualified professionals regarding their individual circumstances.
Third-party content. References or links to government agencies, lenders, assistance programs, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.
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Simply Approved Mortgages LLC, 633 W 5th St, Ste 2600, Los Angeles, CA 90071 · 877-813-7219 · support@simplyapprovedmortgages.com. State licensing details available at the NMLS Consumer Access link above. © 2026 Simply Approved Mortgages LLC.