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TruePITI
Live Rates
30-Year Fixed6.710%+0.050|15-Year Fixed6.040%+0.060|30-Year FHA6.460%+0.050|30-Year VA6.210%+0.040|5/1 ARM6.210%+0.040|7/1 ARM6.340%+0.050|30-Year Jumbo7.210%+0.050|15-Year Jumbo6.710%+0.060|CA Avg6.650%-0.080|TX Avg6.700%+0.050|FL Avg6.700%-0.030|NY Avg6.680%-0.100|PA Avg6.690%-0.050|IL Avg6.730%+0.020|OH Avg6.750%-0.070|GA Avg6.680%0.000|NC Avg6.670%-0.040|MI Avg6.740%-0.060|AZ Avg6.700%+0.030|WA Avg6.640%-0.090|30-Year Fixed6.710%+0.050|15-Year Fixed6.040%+0.060|30-Year FHA6.460%+0.050|30-Year VA6.210%+0.040|5/1 ARM6.210%+0.040|7/1 ARM6.340%+0.050|30-Year Jumbo7.210%+0.050|15-Year Jumbo6.710%+0.060|CA Avg6.650%-0.080|TX Avg6.700%+0.050|FL Avg6.700%-0.030|NY Avg6.680%-0.100|PA Avg6.690%-0.050|IL Avg6.730%+0.020|OH Avg6.750%-0.070|GA Avg6.680%0.000|NC Avg6.670%-0.040|MI Avg6.740%-0.060|AZ Avg6.700%+0.030|WA Avg6.640%-0.090|

Assumable Mortgage Guide: Take Over the Seller's 3% Rate

By James Chen | Editorially reviewed against primary government and agency sources | Updated September 11, 2026

If the seller has a 3% FHA loan from 2021 and you can take it over, you just beat the 2026 market by three and a half points. An assumable mortgage lets a buyer step into the seller's existing loan — same rate, same term, same balance — instead of getting a new 6.625% loan. It is the best rate hack in the current market, and almost nobody does it because the mechanics are poorly understood.

Which loans are assumable: FHA loans are assumable by any qualified buyer. VA loans are assumable by anyone, but if you are not a veteran the seller's remaining entitlement stays tied to the loan — a real concern if you ever sell or want to use the VA loan again yourself. USDA loans are assumable by income-qualified buyers. Conventional loans are almost never assumable without the lender's permission, which rarely comes.

The catch is the gap. You assume the remaining balance, not the full purchase price. On a $400,000 home with a $240,000 remaining balance, you bring $160,000 in cash or a second mortgage on top. The math works when the rate gap is wide: assuming a 3.25% loan on $240,000 saves about $460/mo versus a new loan at 6.625% — that is $165,000 in interest over 30 years. The second mortgage costs you 7-9%, and it still comes out ahead for the first decade.

The process runs through the lender holding the original loan: an assumption application, credit check, and an assumption fee — 0.5% of the balance on FHA, about $300 flat on VA. The fee is the cheap part; the qualification is the same income and DTI review as a new loan. Expect 30-60 days, not the 45 that a new purchase takes — plan the closing date accordingly.

Where to find them: listings rarely advertise assumability. Ask the listing agent directly, or search for "assumable FHA" in the listing remarks. On a hot 2026 market, an assumable 3% loan is a serious negotiating edge — sellers who know they have one price the home higher and still get offers.

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Frequently Asked Questions

Can any mortgage be assumed?+
No. FHA, VA, and USDA loans are assumable by qualified buyers. Conventional loans generally are not — they contain due-on-sale clauses that let the lender call the loan due when the property changes hands without permission.
How much does it cost to assume a mortgage?+
The assumption fee runs about 0.5% of the balance on FHA loans and roughly $300 on VA loans, plus the usual title and recording costs. You still pay for your own appraisal and credit report — the savings are in the rate, not the process.
What happens to the seller after a VA loan assumption?+
If a non-veteran assumes a VA loan, the seller's entitlement stays tied to that loan until it is paid off or refinanced. That is why sellers often prefer veteran buyers or charge a premium for assumption — it is worth negotiating the entitlement release in writing.