AssumableFHA
Federal Housing Administration loans are assumable with servicer approval. The buyer must be creditworthy and live in the home. Most of the assumable inventory in Florida is FHA.
Assumable Mortgages · South Florida
Some Florida homes come with a 3% mortgage you can take over.
An assumable mortgage lets a buyer step into the seller's existing loan — the same rate, the same balance, the same remaining term — instead of borrowing new money at today's rates. It's legal, it's documented, and it's the most underused tool in this market: roughly 22.8% of listings sit on assumable loans, yet only about 1 in 10 of those sellers market it. This page is the honest version — how it works, what it really costs in cash, and where it falls apart.
≈ 22.8%Of listings have an assumable loan — most never advertised (BeachesMLS / RetroRate)
$111,129Median cash-to-assume in Florida — the gap is the gate (UMe, Oct 2026)
60–90 daysTypical assumption timeline — plan on the long end
How It Works
You don't get a new loan. You inherit theirs.
"Inherit" is the clearest way to say it: the buyer takes over the seller's rate, balance and payoff date, and pays the seller for their equity. Five steps, in the order they actually happen.
1
Find a home carrying the right loan
Only FHA, VA and USDA loans are assumable by law — most of the good ones were written in 2020–2022, when rates were 2.5–4%. The loan has to be identified before anything else can happen: many listings never mention it, so the check runs against loan data, not listing remarks. Through BeachesMLS, Albury checks listings with RetroRate, the MLS's assumable-loan partner.
2
Agree on a price like any other purchase
An assumption doesn't change how the price is negotiated. The deal has two separate pieces: the seller's loan, which you may be able to step into, and the seller's equity — the difference between the price and what's left on that loan.
3
Qualify with the loan servicer — full underwriting
The servicer (the company that collects the payments) approves you, not the seller and not a new lender. Expect the full file: credit, income, employment, debt ratios. Servicers must decide within 45 days of a complete application — and files stall for months when paperwork is treated as incomplete, which is most of why assumptions run long.
4
Cover the equity gap
Price minus the remaining loan balance, paid in cash at closing — or partly bridged with a second loan where one can be found. This gap is the real gate on the whole strategy, and it's the number to look at first, before the rate.
5
Close, and the loan becomes yours
At closing the loan transfers at the seller's rate, balance and remaining term — no new loan, no new rate, no restarting the 30-year clock. The seller should walk away with a written release of liability; on VA loans, how the seller's entitlement is handled matters just as much (see the catches below).
Who Can Assume
It starts with the seller's loan type.
Assumability is a property of the loan, not the house. If the seller's loan isn't one of the three government-backed types, there is nothing to take over.
Assumable — with an entitlement catchVA
Anyone can assume a VA loan — veteran or not — if the servicer approves them. But the seller's VA entitlement can stay tied to that loan until it's paid off, unless a veteran buyer substitutes their own entitlement. That one detail decides a lot of VA deals.
AssumableUSDA
USDA rural-development loans are assumable for owner-occupants who meet the program's income limits. In South Florida they show up mostly at the metro edges — Homestead and western Palm Beach County.
Almost neverConventional
Conventional loans carry due-on-sale clauses: sell the home and the loan is due. A small number of older adjustable-rate loans are exceptions, but you should never shop expecting one. If the loan isn't FHA, VA or USDA, plan on new financing.
And one rule over all of them: the buyer must live in the home. FHA, VA and USDA assumptions are owner-occupant only.
The Honest Math
The rate is the headline. The gap is the story.
Every assumption is two numbers, not one: the payment you inherit, and the cash you need to get it. Here is one worked example, end to end — labelled as an example, because it is one.
Illustrative example — not a listing, not a quote
A $520,000 home, a $430,000 loan at 3.1%
Take over the seller's loan
Principal & interest / month≈ $2,009
$430,000 balance at 3.1%, about 26 years left on the term. Cash to the table: the ≈ $90,000 equity gap, plus assumption and closing fees. The loan also ends about 4 years sooner than a fresh 30-year loan.
Borrow new, same $90,000 brought in
Principal & interest / month≈ $2,954
A new $430,000 loan over 30 years at 7.32% — the Freddie Mac weekly average in October 2026. Same house, same cash in, roughly $945 more every month, and a clock that restarts at 30 years.
The ≈ $945/month difference is real — and so is the $90,000. Taxes, insurance and HOA sit on top of both columns, and in South Florida they're significant. This example is the good case: a sub-4% loan with a manageable gap. The statewide picture is more sobering — Florida's median assumable listing carries a 5.44% rate (only about 2,500 of ~6,900 Florida assumable listings are under 4%) and that $111,129 median gap. The deals exist; they're a minority, and finding them is the work.
The Catches
Five things that end assumable deals.
Nothing on this page is hidden in the fine print — the obstacles are the content. If you go in knowing these five, an assumption is a strategy. If you don't, it's a surprise.
1
The gap is cash, and in Florida it's big
The median cash-to-assume on a Florida assumable listing is $111,129 (UMe, October 2026), and at South Florida prices it regularly runs $150,000–$350,000. A second "gap" loan can bridge part of it, but those loans are scarce, priced at today's rates, and every dollar borrowed at 7% dilutes the saving from the 3% loan underneath it.
2
The servicer sets the pace — plan on 60–90 days
Some platforms advertise 30–45 days; the independent consensus is 45–90, commonly 60–90. Servicers earn a capped processing fee on an assumption versus full origination income on a new loan, so assumption desks are rarely staffed for speed. Write contracts with long escrows from day one.
3
Sellers: liability and entitlement come first
A completed assumption should come with a release of liability — without it, you remain responsible for a loan on a home you no longer own. VA sellers: if a non-veteran assumes your loan, your entitlement stays committed until the loan is paid in full; a veteran buyer substituting entitlement frees it. Both belong in the first conversation, in writing — never as a closing-week surprise.
4
An advertised rate still has to be verified
Only about 0.4% of US listings actively mention assumability, and most online figures for rate and balance are modelled estimates, not facts. The real numbers live on the seller's mortgage statement and with the servicer — a verification step (RetroRate issues one, called a Verification of Loan) is what separates a headline from a deal.
5
Owner-occupants only — this is not an investor tool
FHA, VA and USDA assumptions require the buyer to live in the home. Some listing copy markets assumable loans to investors anyway; the servicer will not approve that. The honest exception is the owner-occupant house-hack — buy a duplex, live in one side, assume the loan.
For Sellers
Your low rate is an asset. Sell it like one.
Buyers shop payments. In a market of 7% money, a home whose loan can be taken over at 3–4% is a different product from the identical house next door — and almost nobody markets it: only about 1 in 10 sellers with an assumable loan say so. Marketed properly — with the rate, balance and cash-to-assume verified against your mortgage statement — your loan becomes the headline, and your buyer pool widens to everyone holding proceeds from a prior sale.
Two protections come before any of that: a written release of liability, and — for VA loans — a clear entitlement plan. Albury runs both checks before a listing goes live, not after an offer lands.
Free assumable check on your home
Text Albury your address and he'll check whether your loan is assumable, what the verified numbers look like, and what the loan could be worth as a selling feature. No cost, no listing commitment.
For Buyers
Who this fits — and who it doesn't.
It fits: move-up and move-down buyers rolling equity from a home they just sold; relocating buyers arriving with proceeds; veterans, whose entitlement substitution can also free the seller — a genuine edge in negotiation; and any buyer who can run a 60–90 day close without it breaking their plans.
It usually doesn't: first-time buyers whose cash is the minimum down payment — the gap will eat it; anyone who must close in 30 days; and investors, who can't assume these loans at all. If that's you, the honest advice is a normal purchase — and the down-payment programs on this site may matter more. No hard feelings; the math is the math.
Get the current tri-county picture
Assumable inventory in Broward, Palm Beach and Miami-Dade is thin and mostly unadvertised — the useful product isn't a listing portal, it's a verified short list plus alerts when new ones surface. Text Albury and he'll tell you what's actually out there this week, with the gaps attached.
FAQ
Assumable mortgages, straight answers.
Can anyone assume a mortgage?
No — three filters apply. The loan itself must be assumable (FHA, VA or USDA; conventional loans almost never are). The buyer must qualify with the loan's servicer under full underwriting. And the buyer must live in the home. One common surprise: you do not have to be a veteran to assume a VA loan — but the seller's entitlement rules still shape the deal.
Which loans are assumable?
FHA, VA and USDA loans, by law. Conventional loans almost never — they carry due-on-sale clauses. Roughly 12 million US mortgages (about 23% of active loans) are assumable, and about 7.2 million of them carry rates under 4% (ICE Mortgage Technology).
How much cash do I need to assume a mortgage?
The equity gap: the price minus the remaining loan balance, plus assumption and closing fees. In Florida the median gap is about $111,129 (UMe, October 2026); nationally, gaps typically run 30–50% of the price. Some buyers bridge part of the gap with a second loan, but cash — often proceeds from selling a previous home — is the usual source.
How long does a mortgage assumption take?
Plan on 60–90 days. The servicer must decide within 45 days of receiving a complete application, but the clock starts when the servicer considers the file complete — incomplete paperwork is the main cause of delays. Contracts should be written with the longer timeline in mind from the start.
Do I need good credit to assume a mortgage?
Yes. Assuming a loan is not a shortcut around qualifying — the servicer runs full underwriting, typically looking for scores in the 580–640+ range depending on the loan program, plus income and debt-ratio checks. What you skip is the new loan's rate, not the approval.
Can investors assume a mortgage?
No. FHA, VA and USDA assumptions are for owner-occupants — you must live in the home. Anyone marketing an assumable government loan as an investor product is describing a deal the servicer won't approve.
I'm selling — what happens to my VA entitlement and my liability?
Two things to protect. First, a release of liability: get it in writing at closing so the loan is no longer your responsibility. Second, entitlement: if a non-veteran assumes your VA loan, your entitlement stays tied up until the loan is paid off — which can limit your next VA purchase. A veteran buyer who substitutes their entitlement releases yours. Raise both before you list, not after you accept an offer.
Are there assumable homes in Broward, Palm Beach and Miami-Dade right now?
Yes, but fewer than national headlines suggest — realistically dozens to low hundreds across the tri-county area at any given time with verified low rates, concentrated in western Broward (Lauderhill, Tamarac, Plantation), Homestead and south Miami-Dade, and western Palm Beach County. Most are not advertised as assumable. Text Albury for the current picture and alerts when new ones surface.
Educational only — not lending, legal or financial advice, and not a rate quote or advertisement of credit terms. The worked example is illustrative, with figures rounded; the comparison new-loan rate is the Freddie Mac Primary Mortgage Market Survey weekly average for October 2026 and changes weekly. Florida and national statistics are drawn from UMe (October 2026), ICE Mortgage Technology, and BeachesMLS/RetroRate as noted in the text. Most importantly: every loan's assumability, balance, rate and remaining term must be verified against the seller's mortgage statement and confirmed with the loan servicer before anyone relies on it — Albury verifies the numbers on any specific home before they're used in an offer or a listing. Talk to your lender or servicer about your own loan. AP Living · Albury Pierre, LPT Realty.