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Mortgage Glossary

Assumable Loan

Mike Starr·Reviewed August 2026

An assumable loan is a mortgage that can be transferred from the seller to the buyer with lender approval, allowing the buyer to take over the existing loan's balance, rate, and terms. This is especially valuable when the existing loan carries a lower interest rate than current market rates. FHA, VA, and USDA loans are generally assumable; most conventional loans are not due to due-on-sale clauses.