How to Assume a Loan: Benefits of Assuming a Loan in 2023 and Beyond

Are you thinking of assuming a loan? With high mortgage interest rates, assuming a loan is happening more and more to help people find affordable housing. Loan assumptions in 2023 and 2024 are projected to be the highest rate since the 1990s.

Most home loans are assumable. Home buyers historically have not tried to assume a loan, since interest rates have been trending down since the early 1980s. But with mortgage rates peaking in 2022 above 7% and possibly increasing in 2023 many people have decided to seek out a loan assumption.

VA and FHA loans are generally assumable, but also conventional and even jumbo loans can be assumed. Please talk to you local real estate agent and mortgage broker when making an offer and asking to see properties where the sellers are offering their loan as an assumption.

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