Assumable Loan Help in the Denver Metro

Dawn Green is a REALTOR® with Real Broker, LLC and a former mortgage underwriter. She helps buyers and sellers across Centennial, Aurora, Parker, Littleton, Highlands Ranch, Castle Rock and the greater Denver Metro with assumable-loan purchases, from finding the right home to closing day.

What is an assumable loan?

An assumable loan lets a buyer take over the seller's existing mortgage, including its interest rate and remaining balance, instead of starting a brand-new loan. When the seller's rate is lower than today's rates, that can mean a lower monthly payment for the buyer.

Which loans can be assumed?

Many FHA, VA and USDA loans can be assumed. Most conventional loans cannot. Every assumption needs approval from the company that services the seller's loan, and the buyer still has to qualify.

What buyers should know

  • You cover the gap. The buyer pays the difference between the purchase price and the remaining loan balance, usually in cash and sometimes with a second loan.
  • Plan for more time. Loan servicers often take longer to approve an assumption than a lender takes to approve a new loan, so the contract timeline needs to allow for it.
  • Expect some fees. For example, VA charges a funding fee on assumptions. Your lender or the loan servicer can confirm the current amounts.

What sellers should know

  • A low assumable rate can make your home stand out to buyers who are worried about today's rates.
  • VA sellers, protect your entitlement. If the buyer is not a veteran who can substitute their own VA entitlement, part of your entitlement may stay tied to that loan. Talk with your lender before you agree to an assumption.

Why work with Dawn on an assumable loan

Before earning her Colorado real estate license in 2015, Dawn worked as a mortgage underwriter and as a transaction coordinator supporting more than 20 agents, and she has sat at the closing table for more than 20,000 loan closings. She reads loan conditions and contracts the way a lender does, so she can spot problems early, keep the servicer moving and protect your timeline. She has closed 218+ transactions totaling more than $75 million.

Dawn has hands-on assumable experience, too. Over the past four years, she has averaged two to four assumable-loan closings a year.

Common questions

Has Dawn closed assumable-loan purchases?
Yes. Over the past four years, Dawn has averaged two to four assumable-loan closings a year in the Denver Metro.

Can I assume a VA loan if I'm not a veteran?
Often, yes, if you qualify and the loan servicer approves it. The seller should understand how the assumption affects their VA entitlement before agreeing.

How do I find homes with assumable loans?
Dawn can help you search for homes in your price range that have assumable financing and confirm the loan details with the seller's side before you write an offer.

Is an assumable loan always the better deal?
Not always. The lower rate has to be weighed against the cash needed to cover the gap and the longer timeline. Dawn will walk you through the numbers with your lender so you can decide with confidence.

More from Dawn

Talk with Dawn

Book a 30-minute call at https://calendly.com/dawngreenrealtor/30min/ or call 303-503-2650.

This page is general information, not loan, tax or legal advice. Loan terms, fees and approval are set by the lender and the loan servicer.

Dawn Green, REALTOR®, Broker Associate, Colorado license FA.100066314 | Real Broker, LLC DBA Real | Equal Housing Opportunity