Here’s how you might be able to assume a mortgage during a divorce.
Are you going through a divorce and want to keep your current mortgage rate intact? Assuming your existing mortgage might be the solution you’re looking for. Mortgage assumption is a process that allows one party to take over the loan from another while keeping the original terms, including the interest rate, in place. Typically, this option is available for government loans such as FHA, VA, and USDA loans, provided the new party meets the qualification criteria. Conventional loans usually have stricter rules, but there are exceptions for divorcing spouses who intend to remain in the property.
“I can help you navigate this tricky process.”
To initiate a mortgage assumption, you should start by contacting the loan servicer to express your interest. The servicer will outline the specific documentation requirements and confirm if an assumption is permitted, which can vary depending on your state. As part of the process, you will need to demonstrate your creditworthiness, income, and ability to manage the loan independently without the financial support of your former spouse.
It’s important to note that not all mortgage assumptions are identical. In some cases, the original borrower is entirely released from liability; in others, they may retain some financial responsibility. These terms can vary, so it’s essential to understand the details.
If you’re interested in learning more about mortgage assumptions and whether it’s the right option for you, feel free to call or email me. I look forward to hearing from you.
