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Updated: Mar 5

A typical assumption in real estate is where a buyer assumes a seller's loan at the time of sale, often at a lower interest rate than the current prevailing rates. Some loans have assumptions as an option and some do not.

For Buyers:

Benefit to Buyer

Purchase $ or Financed Gap Coverage Needed for Buyers

Risk to Buyer

For Sellers:

Main Risk to Seller

Risk to VA Sellers

Benefit to Seller

Types of Loans for Assumptions:

Government Loan Types w/ Assumable Clauses: VA, FHA, USDA

Most (But Not All) Conventional Loans Aren't Assumable

USDA Assumptions (Typically Current Rates, but Lower Closing Costs)

Other Elements of Assumptions:

They Take Longer

Closing Costs Involved

Not All Lenders Do Them (Disputed)

Alternatives to Assumptions

(Hampton Roads) REIN Assumption Addendum

Getting Help on an Assumption


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