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.

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.

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.

Roam 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 “Save search” 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 Roam Advisor directly from the listing. Your Roam 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 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.

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. All FHA loans are assumable by law as long as the buyer meets the FHA’s credit, income, and qualification requirements and obtain lender approval before assuming the loan (per FHA regulations effected December 15, 1989). Roam makes this process simple for buyers.

Generally, conventional loans are not assumable. In rare cases, a conventional loan may be assumable with lender approval. Use our search tool to find homes with assumable low-rate loans, or reach out to us if you’d like to confirm a specific home’s assumability.

Yes. Once the transaction is complete, the loan and home are legally in the buyer’s name, just like in a conventional sale. This eliminates any future obligation for the seller.

Roam transactions typically close in the same amount of time as a standard home purchase. If closing takes longer than 45 days, Roam covers the seller’s mortgage until closing through our seller protection plan, giving sellers added peace of mind and helping the buyer’s offer stand out.

With a loan assumption, you’ll save on closing costs since there are no lender, servicer, or appraisal fees.

Here’s a quick breakdown:

- FHA loans: $1,800 assumption fee

- VA loans: 0.5% of the loan balance VA funding fee

- Title and insurance fees: Usually about 0.5% of the sale price

- Roam service fee: 1% of the sale price, paid by the buyer

Overall, assuming a loan through Roam often costs less than a traditional home purchase.

The down payment on an assumable mortgage is the difference between the purchase price and the seller’s remaining loan balance. You can cover that gap with cash, a second mortgage, or a combination of both.

If you don’t have enough cash, Roam can help you secure a second mortgage to finance the difference and still take advantage of the low rate on the assumed loan. This means you’ll make two payments (one for the assumed mortgage and one for the second loan).

In many cases, the blended rate between the two loans is still lower than a new traditional mortgage. Each Roam listing includes a built-in calculator that shows your blended rate and estimated monthly payment to help you compare options easily.

VA loan assumptions do not require the home to be your primary residence, making them a great option for real estate investors.

FHA loan assumptions require the home to 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.