Can you assume a Fannie Mae mortgage?

An assumable loan allows a buyer to assume the rate, repayment period, current principal balance and other terms of the seller’s existing mortgage rather than obtain a brand-new mortgage.

Check the loan terms to see if your loan is assumable. Technically speaking, any loan could be assumable if it is written into the terms of the loan. From a practical standpoint, most Fannie Mae loans do not have an assumable clause. But, it is worth checking to make certain.

FHA, USDA, and VA loans are assumable. Assumable loans are a great alternative if current interest rates are much higher than the rate on the loan to be assumed. Keep in mind the new borrower does need to qualify for the assumed loan. Also, the seller is not released from liability. So, if the borrower of the assumed loan defaults, the sellers credit will be impacted.

To answer your question, FHA loans will cost the borrower up to $500. Va loans will cost the borrower up to $300.

Ask me any real estate or mortgage question. If you are thinking of purchasing a home, switching from an adjustable to a fixed rate, or want to pull equity, I can help with the process. Contact me today.