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HomeRate Advantage is your trusted partner for affordable home ownership. We help manage the assumption process from start to finish, enabling homebuyers to easily purchase their next home with a low-interest rate mortgage attached.Roam is your trusted partner for affordable home ownership. We help manage the assumption process from start to finish, enabling homebuyers to easily purchase their next home with a low-interest rate mortgage attached.
An assumable mortgage is a type of home loan that allows a homebuyer to take over the existing mortgage terms from the seller, with no cost to the seller. Many government-backed loans, such as FHA and VA loans, are eligible for assumption, and millions of these mortgages are available.
When interest rates on mortgages are high, assuming a mortgage with a rate as low as 2% allows buyers to save up to thousands monthly compared to buying a home with a traditional mortgage at today’s average rates of 7%. A low-rate assumable mortgage could be the key to finding your dream home at an affordable price.
HomeRate Advantage has compiled available listings with low-rate assumable mortgages for you to browse. To get started, enter the city, state, zip code, or school district you’re interested in purchasing in. Utilize the search filters to narrow down your search. Click “Get Notified” to save your search preferences and activate listing notifications—we’ll email you as soon as new listings match your criteria.
Once you’ve found your dream home and ready to make an offer, schedule a call with a HomeRate Advantage Advisor directly from the listing. Your HomeRate Advantage Advisor will guide you through each step of the process, while also working directly with your agent, the servicer, and the seller to ensure you close on time.
To qualify, you must meet the current FHA, VA, or USDA loan requirements depending on the type of loan you are assuming. This typically means a minimum credit score of 580, although most lenders prefer 620-640. Your debt-to-income ratio should be under the 50% max under FHA guidelines. Additional information such as employment history, explanations of income for each applicant, and asset verification for a down payment may be needed to process the loan.
When assuming the existing mortgage as part of a home purchase, the buyer has to cover the seller’s equity in the home. The seller’s equity is the purchase price minus the remaining mortgage balance. This amount must be covered in full through an all-cash down payment or by taking out a second mortgage.
An assumption might be a suitable option for you if you meet the lender’s qualifications. We also offer Roam Boost to help buyers reduce the down payment required to a minimum of 5-15%. See below for more FAQs specific to HomeRate Advantage Boost.
Assuming a mortgage can seem complex and unfamiliar. We simplify the process by providing white-glove support and expertise at every step. HomeRate Advantage helps home buyers find and purchase homes with a low-rate assumable mortgage included. Once you find your dream home, HomeRate Advantage manages the process of assuming a low-interest rate mortgage, helping buyers save thousands a year on mortgage payments compared to buying with a traditional mortgage at today’s rates. On average, buyers who use HomeRate Advantage save $15,000 in mortgage payments annually.
90% of homeowners don't know their mortgage is assumable. Buyers who work with HomeRate Advantage are 5x more likely to close in 45 days. Contact us to learn more.
While HomeRate Advantage provides comprehensive support for the assumption process, it’s recommended that you work with a knowledgeable real estate agent with regional expertise. HomeRate Advantage has developed an extensive network of agents who are well-versed in assumptions, and a HomeRate Advantage advisor can connect you with a vetted agent if needed.
HomeRate Advantage has compiled available listings with low-rate assumable mortgages for you to browse. To get started, enter the city, state, zip code, or school district you’re interested in purchasing in. Utilize the search filters to narrow down your search. Click “Get Notified” to save your search preferences and activate listing notifications—we’ll email you as soon as new listings match your criteria.
Once you’ve found your dream home and ready to make an offer, schedule a call with a HomeRate Advantage Advisor directly from the listing. Your HomeRate Advantage Advisor will guide you through each step of the process, while also working directly with your agent, the servicer, and the seller to ensure you close on time.
When you work with HomeRate Advantage to facilitate a mortgage assumption, we guarantee that you will close in 45 days. If the home does not close within this period, we’ll cover the seller’s mortgage payments until it does.
HomeRate Advantage’s Closing Guarantee is designed to give sellers peace of mind so they are receptive to assumption offers, knowing they are covered if something goes wrong. It also provides additional negotiating room and can help strengthen your offer in a multiple-offer situation when it occurs.
To qualify, you must meet the current FHA, VA, or USDA loan requirements depending on the type of loan you are assuming. This typically means a minimum credit score of 580, although most lenders prefer 620-640. Your debt-to-income ratio should be under the 50% max under FHA guidelines. Additional information such as employment history, explanations of income for each applicant, and asset verification for a down payment may be needed to process the loan.
No, HomeRate Advantage does not handle mortgage approvals. The lender or servicer who holds the original mortgage handles the approval. HomeRate Advantage’s role is to facilitate the process and provide coordination, support and guidance along the way.
Yes, most listing agents will not entertain an offer without a preapproval. Once your offer is accepted, the seller’s servicer also underwrites the loan and checks your credit score, debt-to-income ratio, and other financial factors to see if you meet minimum requirements.
VA loan assumptions do not require the home to be your primary residence, making them a great option for real estate investors. If you’re interested in assuming a VA loan, you will be required to purchase the home in your name and have enough cash to cover the seller’s equity in the home. The seller must also be okay with foregoing their entitlement until the loan is paid off.
But, FHA loan assumptions require the home to be your primary residence. To qualify to assume an FHA loan, the property must be your primary residence for a minimum of one year. This means you must live in the home for more than six months out of the year.
Yes. Non-veterans can assume a VA loan, provided they meet the lender’s VA criteria. When a qualified buyer assumes a VA mortgage from a veteran or active-duty service member, the seller’s VA loan entitlement remains tied to the assumed loan until the buyer pays off or refinances the loan. This process restores the veteran seller’s entitlement, enabling them to use their VA benefit for a future home purchase.
Yes, you can assume a mortgage when purchasing a home for a family member as long as you meet the lender’s qualifications for the loan.
HomeRate Advantage collects a fee of 1% of the purchase price from the buyer through closing costs. The seller does not pay any fee to HomeRate Advantage. Both parties will pay 3rd party closing costs, but unlike a traditional mortgage, the buyer will not have to pay for an appraisal. Both HomeRate Advantage’s fees and the third-party closing costs can be covered by the seller through a concession to the purchase price or by rolling them into a second mortgage if you are using one. However, you cannot wrap the closing costs into the mortgage you are assuming.
Assuming a mortgage is complex and unfamiliar. We simplify the process by providing white-glove support and expertise at every step. This means we’ll coordinate every detail on behalf of sellers, buyers, and agents, from connecting interested buyers to eligible listings to handling paperwork and financing to ensure your mortgage assumption closes smoothly.
Closing costs can vary significantly based on the specifics of the transaction. They typically include fees for services such as home inspection, title search, and other administrative tasks. Generally, these costs cannot be wrapped into the assumable loan. However, if you’re using a second mortgage to finance the home, these costs could potentially be incorporated into that loan.
MIP, or Mortgage Insurance Premium, is an additional cost that borrowers must pay when taking out a mortgage loan backed by the Federal Housing Administration. This insurance policy protects lenders from the risk of default and foreclosure. For loans closed on or after June 3, 2013, MIP ends after 11 years if the original down payment was more than 10%. However, for loans with a down payment under 10%, you’ll pay MIP for the life of the loan.
The required down payment amount for an assumable mortgage is the difference between the purchase price and the seller’s remaining loan balance. You can either use cash, a second mortgage, or a mix of the two to fund the down payment. If you need help connecting with a secondary mortgage provider, contact us to learn about options that reduce the down payment requirement to purchase a primary residence with an assumable mortgage to just 5%, and 15% for investment properties.
For the mortgage you are assuming, the payoff schedule remains the same, and putting more money down would only affect the outstanding mortgage balance. However, if you are using a second mortgage to finance some of the home, putting more money down reduces the amount you need to borrow, which can lower your total monthly mortgage payments.
If you cannot afford the down payment amount in cash, you can utilize HomeRate Advantage Boost to take out a second mortgage for the remaining balance. This would require you to make two monthly mortgage payments (one for the assumed mortgage and one for the second mortgage).
In many cases, the blended rate between the assumable and second mortgages still provides cost savings to the buyer compared to purchasing the home with a traditional mortgage. To determine if a second mortgage makes sense for you, we have included a HomeRate Advantage Boost calculator on each listing. This feature automatically calculates the blended rate and monthly payment based on the inputs provided, making it easier for you to make informed decisions.
Generally, the second mortgage is primarily used to finance part of the home purchase price. However, some may allow closing costs to be rolled into the second mortgage to reduce upfront costs for the buyer.
Given some homes for sale with assumable mortgages require a larger down payment to cover the buyer’s equity, Roam is bridging the down payment gap through its second mortgage program. For those who need support with a down payment, they may be able to achieve a blended rate typically between 4-5% when using a 2nd mortgage lien to cover a portion of the required down payment.
An assumable mortgage with a second mortgage is a financing arrangement that allows a buyer to take over the seller’s existing mortgage and secure additional financing to cover the remainder of the home purchase price. This can be particularly beneficial when the interest rate of the first mortgage is lower than current market rates. HomeRate Advantage facilitates such arrangements, providing buyers with a unique opportunity to potentially save on their home purchase.
A second mortgage works alongside an assumable mortgage by providing the necessary funds to bridge the gap between the home’s selling price and the balance of the assumable mortgage. This second loan is secured against the equity of the home.
The main advantage of combining a second mortgage with an assumable mortgage is the potential for financial savings. Buyers can take advantage of the lower interest rate of the assumable mortgage for the majority of the financing. The second mortgage, potentially at a higher rate, covers the rest. This combination often results in a blended rate that can lead to lower overall monthly payments compared to a single new mortgage at current higher rates.
Buyers typically need to meet the lender’s credit and income criteria to qualify for the total amount of second mortgage and the assumed mortgage. Additionally, the buyer must be eligible to assume the existing mortgage, which involves obtaining approval from the lender based on the original loan’s requirements. This process ensures that the buyer has the financial stability to manage the payments for both mortgages.
The process involves a few key steps. Firstly, the buyer applies for and secures approval to assume the seller’s existing mortgage. At the same time, the buyer applies for a second mortgage to cover any additional financing required. Once both loans are approved, they are finalized at closing, and the purchase closes.
A blended rate refers to the weighted average interest rate of two or more loans. If you need a second mortgage, the blended rate would be the combined interest rate of the first mortgage and the second mortgage. The weighting is determined by the loan amount of each mortgage.
When you use a second mortgage with an assumable mortgage, it can often lead to lower monthly payments compared to securing a single new mortgage at a higher current market rate. This is because the blended rate, which is the combined interest rate of the assumable mortgage and the second mortgage, typically offers a more favorable overall interest rate. This blended rate is proportionally weighted according to each loan amount, which can make your monthly payments more manageable. However, it’s important to remember that individual financial circumstances can vary, so it’s always a good idea to consult with a mortgage professional to understand all the implications.
While both Home Equity Loans (HELOANs) and Home Equity Lines of Credit (HELOCs) are forms of second mortgages, they serve distinct purposes. A HELOAN is typically a lump-sum payment with a fixed interest rate designed to bridge the financing gap and facilitate home purchases. HELOANs offer buyers the same payment every month and allow them to know their all-in monthly cost when purchasing a home. Conversely, a HELOC is a flexible line of credit with a typically variable interest rate, which you can draw against as needed, but it’s not generally used for home purchases.
HomeRate Advantage is your trusted partner for selling or buying a home with a low-rate assumable mortgage. We manage the assumption process from start to finish, enabling homebuyers to easily purchase their next home with a low-interest rate mortgage attached.
An assumable mortgage is a type of home loan that allows a homebuyer to take over the existing mortgage terms from the seller. All government-backed loans, such as FHA and VA loans, are eligible for assumption by law, and millions of these mortgages are available.
With today’s interest rates, including your low-rate assumable mortgage in your sale offers several benefits:
Larger buyer pool: Sellers that include a low-rate mortgage with their home can attract 5x more buyers that can afford their home.
Competitive advantage: The ability to assume a low interest provides an additional incentive to potential buyers, making your listing stand out in the market.
Higher proceeds: Once more buyers can afford your home, you’ll receive more offers and have a higher certainty of sale.
With interest rates at their highest in years, your low-rate mortgage is a valuable asset. HomeRate Advantage helps sellers effectively market their assumable mortgage to maximize exposure and reach up to 5x more buyers. Once an offer is accepted, we guide the buyer through the assumption process and manage the transaction for all parties involved, ensuring a smooth and timely closing. Plus, Roam is free for sellers and our 45-Day Closing Guarantee means you’ll close within 45 days, or we’ll cover your mortgage payment until we do.
HomeRate Advantage is free for sellers. HomeRate Advantage’s fee is 1% of the purchase price, which we collect from the buyer for our service through closing costs.
We’ll work with your listing agent to market your listing to buyers interested in assuming a low-rate mortgage. We can also provide your agent with additional marketing resources to include with your listing.
For sellers who don’t have a listing agent, we can recommend a highly trusted and qualified agent who will partner with HomeRate Advantage to sell your home along with your assumable rate mortgage.
When you work with HomeRate Advantage to facilitate a mortgage assumption, we guarantee that you will close in 45 days. If the home does not close within 45 days, we’ll cover your mortgage payments until it does, as long as the scheduled closing date is at least 45 days from the offer acceptance and you sign the HomeRate Advantage Seller Closing Guarantee. Just provide proof of mortgage payments made during this period, and we’ll handle the rest, ensuring prompt and accurate reimbursement.
To ensure the best results and benefits from a mortgage assumption, we currently require homes to have an assumable loan, such as an FHA or VA loan, which meet the following criteria:
You are current on your mortgage payments
Your remaining mortgage balance is at least 40% of the listing price
How do I find a buyer who qualifies for my loan?
HomeRate Advantage will work with you and your agent to market your listing and to make sure buyers understand the benefits of the assumable mortgage. We will then screen any interested parties on your behalf.
Once the mortgage is successfully transferred, your name will be removed from the mortgage. You will no longer be held liable or associated with the mortgage. Anything that occurs with the mortgage after the assumption will have no impact on you or your credit.
HomeRate Advantage will work with you and your agent to market your listing and to make sure buyers understand the benefits of the assumable mortgage. We will then screen any interested parties on your behalf.
In order for your VA loan entitlement to be released, your mortgage must be assumed by another qualified military buyer, or the loan must be completely paid off. This allows you to take out a new VA loan for your next home purchase. If you are looking to sell and want to maintain your entitlement, HomeRate Advantage will help market your home to qualified military buyers.
As part of the mortgage assumption process, the lender files for a release of liability of the loan when the mortgage is transferred to the new buyer. This means that you will no longer have any obligation for the loan, and your credit is untouched regardless of the subsequent buyer’s payments.
In addition to ensuring a smooth mortgage assumption process for the seller, HomeRate Advantage will recommend lenders who provide additional financing to the buyer if they do not have the cash to cover the remaining equity. With all mortgage assumption transactions, HomeRate Advantage ensures the seller’s equity is cashed out entirely at the time of closing.
HomeRate Advantage is your go-to partner to help buyers achieve affordable homeownership, and for sellers to reach 5x more buyers. We manage the assumption process from start to finish, enabling homebuyers to easily purchase their next home with a low-interest rate mortgage attached.
An assumable mortgage is a type of home loan that allows a homebuyer to take over the existing mortgage terms from the seller. All government-backed loans, such as FHA and VA loans, are eligible for assumption, and millions of these mortgages are available.
We’re a powerful tool in every agent’s back pocket to help increase the certainty of a sale by making the home more marketable for sellers and more affordable for buyers.
Mortgage assumptions are complex, can be unfamiliar for both agents and servicers, and require constant attention to move each step forward. When not handled correctly, a transaction could be delayed or risk falling through. Without HomeRate Advantage, we have seen paperwork filed incorrectly, focus taken away from buyer support through negotiations due to lengthy calls with the servicer, and closing delays.
HomeRate Advantage has created a platform to streamline the process and solve major pain points lenders may have with processing a loan assumption. As experts in mortgage assumptions, we facilitate the paperwork and communication between all parties involved, ensuring a successful and timely closing. This allows you, as the agent, to focus on all sensitive negotiations and supporting your buyer through the closing process.
We collect a fee of 1% of the purchase price from the buyer through closing costs to make the process simple and stress-free. The savings in monthly mortgage payments as a result of the lower interest rate means HomeRate Advantage’s fee is often made up for within 3 months of closing compared to purchasing the home with a traditional mortgage at today’s rates. HomeRate Advantage is free for sellers and agents.
The process of assuming a mortgage is complex and unfamiliar. We simplify the process by providing white-glove support and expertise at every step. This means we’ll coordinate every detail on behalf of sellers, buyers, and agents, from connecting interested buyers to eligible listings to handling paperwork and financing to ensure your mortgage assumption closes smoothly.
We work with all loan servicers.
Contact us to learn about how we can provide HomeRate Advantage buyers with a low-cost second mortgage solution that reduces the down payment requirement to purchase a primary residence with an assumable mortgage to just 5%, and 15% for investment properties. If you have any specific preference for the 2nd lien lender, we are happy to work with them.
With a mortgage assumption, the buyer does not need to originate a new mortgage, and instead, they take over the seller's mortgage terms including the balance and interest rate, and the seller’s mortgage servicer provides the official approval to the buyer for the assumption.
We file for a release of liability of the loan when the mortgage transfers to the new buyer. This means the seller’s name is removed from the note following the assumption, and they will no longer have liability for the mortgage. Their credit will remain untouched and any activity thereafter on the mortgage will not be associated with them.
Any government-backed loan such as an FHA or VA loan is eligible for assumption by law.
When assuming the existing mortgage as part of a home purchase, the buyer has to cover the seller’s equity in the home. The seller’s equity is the purchase price minus the remaining mortgage balance. This amount must be covered in full through an all-cash down payment or by taking out a second mortgage.
Mortgage assumptions come with specific conditions not present in new loan originations. Buyers assuming an FHA loan will need to move into the home within 60 days of closing and the home is required to be their primary residence for at least one year. But, when buyers assume a VA loan, it is not required this be their primary residence.
Additionally, they should meet the minimum requirements for an FHA loan and have enough for a down payment of 5% for primary residences and 15% for investment properties.
For sellers, the mortgage must be assumable with no delinquent payments (all government-backed loans, such as FHA or VA loans, are eligible for assumption by law). To provide the most value to buyers, Roam also focuses on loans with an interest rate below 5.5% and with sellers who have 60% or less equity in their homes.
Once you fill out the lead form or create an account, we’ll send you Roam’s Assumable Mortgage Playbook. This includes both buyer and seller-specific resources that you can share with your clients to introduce them to HomeRate Advantage.
Additionally, HomeRate Advantage provides free marketing materials for agents to 10x your listing views. These materials include personalized open house flyers, enhanced listing photos that highlight the low interest rate with HomeRate Advantage, updated public remarks, and lawn signs.
If I am representing the buyer, what documentation do I need to include with their offer?
Each state has different documentation requirements for a mortgage assumption. Your HomeRate Advantage Advisor can provide you with more information when you're ready to submit an offer.
Each state has different documentation requirements for a mortgage assumption. Your HomeRate Advantage Advisor can provide you with more information when you're ready to submit an offer.
When you work with HomeRate Advantage to facilitate a mortgage assumption, we guarantee that you will close in 45 days. If the home does not close within this period, we’ll cover the seller’s mortgage payments until it does.
Take a look at our listings and reach out!
Make an account and make a listing!
HomeRate Advantage is your trusted partner for affordable home ownership. We help manage the assumption process from start to finish, enabling homebuyers to easily purchase their next home with a low-interest rate mortgage attached.
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