Share on Facebook Share on Twitter Email
Answers.com

Assumable Loan

 
Business Dictionary: 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.

Search unanswered questions...
Enter a word or phrase...
All Community Q&A Reference topics
Real Estate Dictionary: Assumable Loan
 

A mortgage loan that allows a new home 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.

 
 

 

Copyrights:

Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more
Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved.  Read more