Assumable Loan

A mortgage loan that allows a new home purchaser to undertake the obligation of the existing loan with no change in loan terms. Loans without due - on - sale clauses, including most FHA and VA mortgages, are generally assumable.

Previous:	Association of Certified Fraud Examiners (ACFE), Association, Assimilation
Next:	Assumption Fee, Assumption of Mortgage, Assumption of Risk

View more Business & Finance videos

A mortgage loan that allows a new purchaser to undertake the obligation of the loan with no change in loan terms. This is generally true of loans without due - on - sale clauses . Most FHA and VA mortgages are assumable.


Example: Abel sells a home with an assumable loan to Baker.
Baker takes over the payments of the loan and accepts liability under the mortgage note.

Previous:	Association of University Real Estate Officials (AUREO), Association of Real Estate License Law Officials (ARELLO)
Next:	Assumption Fee, Assumption Ofmortgage