While it’s not the most common way to acquire real estate, assuming a mortgage loan is one way that people become homeowners. By assuming a loan, a person accepts responsibility for the terms, payments and obligations of another person’s mortgage loan. A loan assumption is often part of a divorce, estate, guardianship, or other property settlement or transfer. Many times, it’s a transaction between two or more members of a family.

Is my mortgage loan assumable?

That’s the first question you should ask. Only certain loans are assumable. The loan investors determine whether a loan is assumable or not. If a loan is assumable, the investors also set the terms and conditions for an assumption.

Find out about assuming a loan

We get a lot of questions about assuming loans from our mortgage customers. Do you have loan assumption questions? Before you call, visit our Assuming a Loan page. You’ll find helpful information about this topic, including frequently asked questions.

For other articles that explain financial processes, visit our Mortgage Topics in Depth page.

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