MortgagesHomebuying Glossary
Assumable Mortgage
A mortgage that lets a buyer take over the seller's existing loan, including its interest rate.
In plain English
An assumable mortgage allows a qualified buyer to take over the seller's remaining loan balance, rate, and terms instead of getting a brand-new mortgage. FHA, VA, and USDA loans are commonly assumable; most conventional loans are not.
Why it matters
Assuming a loan can be very valuable when the seller's rate is well below current market rates — but the buyer still needs to qualify with the lender.
Where you'll run into it
Guides and tools on TheBuyingPath that cover assumable mortgage in context.
Related terms
Not sure where this fits in your process?
Answer a few questions and get a personalized homebuying roadmap — where you are now, what comes next, and which terms like this one matter at each step.
Start your roadmap