Frequently asked questions

A mortgage assumption lets an approved buyer take over a seller’s eligible existing loan, including the unpaid balance, remaining term, and interest rate. You are not originating a new 30-year loan at today’s rates. You pay the seller the difference between the purchase price and the remaining loan balance, the servicer qualifies you, and the loan transfers into your name.

FHA, VA, and certain USDA loans can allow assumptions, subject to the loan program, buyer eligibility, and servicer approval. Most conventional loans include a due-on-sale clause and cannot be freely assumed. A rate on a listing is not a new-loan quote; confirm the loan type, remaining balance, term, and payment with the servicer before you count on it.

Almost never. Conventional loans typically include a due-on-sale clause that requires the loan to be paid off when the property transfers. UMe’s inventory is built around government-backed loans that are assumable by design: primarily FHA and VA, with USDA where the program allows it.

Yes. FHA and VA loans have included assumption rights for decades. The current mortgage servicer, not a new lender, underwrites the buyer on credit, income, and debt-to-income. When the file is approved, the loan transfers and the buyer makes the existing payment going forward.

Time. Every servicer has a different process and timeline. Assumptions are usually slower than a new-purchase loan because the bank is transferring an existing loan instead of originating a new one. For buyers who can allow 45 to 90 days, keeping a 2% to 4% rate can be worth the wait. UMe does not sugarcoat the process or guarantee a closing date.

Final approval comes from the current mortgage servicer. As a starting point, FHA assumptions often look for a credit score around 580 or higher and a debt-to-income ratio under roughly 50%. VA assumptions often look for 620 or higher. If you can qualify for a new FHA loan, you can usually qualify to assume one. UMe walks you through this in pre-qualification before you spend weeks on a file that will not clear.

No. A qualified non-veteran can assume an eligible VA loan with the required approval. The seller’s VA entitlement generally remains tied to the loan unless an eligible veteran substitutes sufficient entitlement. Release of the seller’s liability and restoration of entitlement are separate issues to resolve before closing.

In a high-rate market, taking over a loan originated when rates were 2% to 4% can cut the principal-and-interest payment dramatically compared with a new 30-year mortgage. You also keep the remaining term instead of restarting a 30-year clock. The trade-off is cash to cover the seller’s equity and a longer servicer timeline.

Yes. You can work directly with the servicer, but you are then responsible for the package, chasing updates, and resolving stalls. Files often sit when a form, credit letter, or HOA document is missing. UMe brings decades of mortgage experience, working knowledge of major servicers, and a team whose job is to keep the file moving.

Start with the purchase price minus the remaining loan balance. That equity gap is your down payment to the seller. Then add closing costs and any required reserves. For example, a $400,000 purchase with a $300,000 remaining balance leaves a $100,000 gap before costs. Eligible buyers may cover part of the gap with a second loan and start with as little as 5% down, plus closing costs.

That is where blended-rate financing comes in. You assume the low-rate first mortgage and take a second mortgage for the cash shortfall. Your blended rate lands between the assumed rate and current market. Every listing page has a live calculator so you can see the payment before you write an offer.

Yes. Buyers must cover the seller’s equity, which is the difference between the sale price and the remaining mortgage balance. That can be paid in cash or, when the numbers work, through a secondary mortgage. UMe can connect qualified buyers with lenders who write gap financing behind an assumption.

Typical buyer costs include an FHA assumption fee of about $1,800, a VA funding fee of 0.5% of the loan balance when the loan is VA (often waived for disabled veterans), title and insurance around 0.5% of the purchase price, and UMe’s 1% service fee on the sale price, paid at closing. There are no conventional lender origination fees or appraisal fees on a standard assumption. Exact figures depend on the loan, the property, and the state.

Plan on 45 to 90 days from offer to close for most FHA and VA assumptions. The servicer, not a new lender, underwrites the buyer, and servicer turnaround is the main variable. Some files move in about a month. Others take longer when the bank is slow, documents are incomplete, or a HOA or title issue appears. UMe tracks the file weekly so it does not stall in a queue.

An assumption transfers an existing loan instead of adding a new loan to the bank’s portfolio. Banks have little incentive to prioritize the transfer, and every servicer has its own forms, departments, and approval path. UMe’s job is to know those paths and keep the package complete so the file is not the one sitting on someone’s desk.

Everything that touches the servicer: the assumption package, income and credit verification, title coordination, VA entitlement paperwork where it applies, the closing timeline, and weekly updates. Your agent runs the real estate deal. UMe runs the loan transfer.

For FHA, a release of liability is standard once the assumption funds. For VA, release requires VA approval and, in many cases, a substitution of entitlement. This should be confirmed in writing before anyone treats the original borrower as done. UMe handles both filings when we are on the file.

If the buyer is also VA-eligible and substitutes entitlement, the seller’s entitlement can often be restored. If the buyer is a civilian, the seller’s entitlement typically stays tied to this loan until it is paid off. That trade-off should be explained to both parties before anyone signs. It is one of the most important conversations on a VA assumption.

Some homes still carry loans originated when rates were lower, so an approved assumption may preserve a rate in those ranges. Availability varies by property and market. A rate shown in a listing is not a new-loan quote or an approval. Verify the rate, loan balance, remaining term, and total payment with the servicer.

The buyer takes over your existing loan terms after the mortgage servicer reviews and approves their application. You still sell the home at an agreed price. The buyer pays you the equity above the remaining loan balance, and the loan transfers. Your listing can reach buyers who cannot qualify, or do not want to pay, for a new loan at current rates.

It should not, provided a release of liability is issued when the loan transfers. Until that release is in place, the original loan can still appear on your credit. Confirm the release with the servicer and keep copies. UMe works with lenders so this step is not skipped at closing.

UMe is free for sellers. The 1% service fee is paid by the buyer at closing. We coordinate the assumption so your agent can sell the home and you are not left managing the servicer yourself.

UMe collaborates with listing agents and does not take the listing commission. We supply tools and marketing that highlight the assumable loan, then run the servicer process after the offer. If you do not have an agent, we can recommend one who has closed assumptions.

Homes with assumable mortgages are more attractive in a high-rate market, and they are easier to sell when someone else owns the servicer process. UMe respects agent commissions, provides assumption-specific marketing, and takes the loan transfer off the agent’s plate so the deal can close.

UMe charges a 1% service fee based on the sale price, paid by the buyer at closing. That covers buyer-seller matching, the assumption package, paperwork, and lender coordination when a second loan is needed. It is not a listing commission.

Yes. Assumptions are processed through the current mortgage servicer, whichever bank or subservicer holds the loan. UMe works across those desks rather than only a handful of preferred lenders.

Share a listing, send buyers to the markets map, or book a call. We provide an agent toolkit, including flyers, worksheets, and customizable marketing, so you can collect buyer and seller information without rebuilding the process from scratch.

Start with your city or state on the markets page, or search the map. Each market page shows local listings and the cash to assume. If your city is not listed, check nearby cities or ask the team about coverage. A listed market does not guarantee active inventory on any given day.

Most portals do not tell you whether the existing loan can be assumed, what the remaining balance is, or what the payment would be if you took it over. UMe’s inventory is built around certified assumable loans: loan type, remaining balance, rate, and servicer confirmed so you are not hoping the mortgage is assumable after you are already in contract.

UMe is a team of loan-assumption specialists. We help buyers take over existing low-rate FHA, VA, and USDA mortgages, help sellers market that financing advantage, and give agents a process for the servicer work. Browse listings with no cost or obligation.