Can’t Sell Your Home? This ‘Holy Grail’ Mortgage Could Help
- Yvonne Yang
- Sep 24
- 2 min read
If your home has been sitting on the market with little interest, you might have a hidden advantage without even knowing it: an assumable mortgage.
It sounds complicated, but here’s the idea: an assumable mortgage lets a buyer take over your existing home loan—including your lower interest rate. With today’s higher rates, that could be the incentive that gets your home sold.
Why This Matters Right Now
Not long ago, homes were selling in days with multiple offers. But today, the market looks different. Inventory is higher, price cuts are more common, and sellers are having to get creative to stand out.
If your mortgage is assumable, it could be the “extra something” that attracts the right buyer—especially if you locked in a record-low rate a few years ago.
Do You Have an Assumable Mortgage?
The good news: many homeowners already do.
FHA loans – often assumable
VA loans – assumable, but veterans need to be careful (more on that below)
USDA loans – also assumable
Most conventional loans aren’t assumable, but about 1 in 4 mortgages in the U.S. are government-backed, meaning millions of homeowners could qualify.
👉 The quickest way to find out? Call your lender and ask.
What Sellers Should Know
While this option can make your listing stand out, it’s not without challenges. Here are some things to keep in mind:
1. The Buyer Still Has to Qualify
The buyer must meet the lender’s requirements—credit score, debt-to-income ratio, etc.—just like a new loan. If they don’t qualify, the deal could fall through.
Example: One seller we know tried to pass along a VA loan at under 3%. The first buyer got rejected late in the process because of undisclosed debts. It all worked out with another buyer, but it delayed the sale by months.
2. It Can Take Longer to Close
Traditional sales can close in 30 days or less. An assumption often takes 60–90 days. If you’re on a tight timeline, this might not be the best option.
3. Buyers May Struggle With the “Gap”
Home values have risen, but your loan balance may be much lower than your sale price. The buyer has to cover the difference—sometimes hundreds of thousands of dollars—either in cash or with another loan. That second loan usually comes with a higher interest rate.
4. Veterans Need to Be Cautious
If you’re using a VA loan, your VA entitlement might remain tied to the property if the buyer isn’t also a qualified veteran. That means you may not be able to use your VA benefit again until the buyer sells or refinances.
The Bottom Line
An assumable mortgage isn’t right for every seller, but in today’s market, it can be a game-changer. If you’ve got one, it could make your home much more appealing to buyers.
👉 Next step: Talk to your lender to see if your loan is assumable, and then connect with a trusted real estate advisor (like us!) to weigh the pros and cons.
With the right strategy, your mortgage might just be the “holy grail” that gets your home sold.
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