Can You Assume a Mortgage With No Money Down? (2026)

Updated November 2026. For buyers looking at a seller’s low-rate loan with little cash on hand. HUD, VA, USDA and federal law read November 9, 2026. General information, not lending advice.

Only when the price is about equal to the seller’s loan balance. In an assumption you take over the loan, then pay the seller the rest. As of November 2026, a $417,500 home with a $350,000 balance leaves a $67,500 gap. FHA, VA and USDA loans can be assumed with approval; most conventional loans can’t.

Buying soon? See how the Beycome buyer program works, with no upfront fee; rules on buyer credits vary by state.

Jump to: 📏 The gap · 🏠 Which loans · 💵 Covering it · 🧾 Other costs · ⚖️ Is it worth it · 🤝 For sellers · ❓ FAQ

If you came here looking for every way to buy without money down, start with our guide to no-money-down loan programs. This page looks at one route that sounds almost too good: stepping into someone else’s mortgage. With rates above 7%, a seller’s old loan looks like treasure. It can be. There’s just a catch, and it’s usually a five- or six-figure one.

Can you assume a mortgage with no money down?

Sometimes, on paper. An assumption has no required down payment in the way a new loan does, because you’re not borrowing fresh money. But the seller wants their equity. The difference between the price and what’s still owed is the equity gap, and someone has to cover it. Here it is on the US median price for September 2026, $417,500 according to NAR.

These are illustrations. A true zero-gap deal usually means a recent loan with almost no paydown, or a home that hasn’t gained value. Those exist, particularly with a very new FHA or VA loan. They aren’t common among the low-rate loans people most want, since those were often taken out years ago and have built up equity.

Which mortgages can you actually assume?

FHA. HUD’s Mortgagee Letter 2025-21 says all FHA-insured mortgages are assumable. Under 24 CFR 203.512, the lender can approve a transfer where a buyer is found creditworthy, and investors are generally shut out. HUD’s FHA answers page covers the same ground, though it wouldn’t load for us on November 9, so we saw it only as a search excerpt.

VA. 38 U.S.C. 3714 says an assumption must be approved if the loan is current and the buyer qualifies and takes on the obligation. If you’re eligible, also compare a brand-new VA loan. The VA says a purchase loan needs no down payment as long as the price isn’t above the appraised value, so it may suit you better than an assumption with a gap.

USDA and conventional. 7 CFR 3555.256 sets USDA’s transfer rules. For conventional loans, 12 U.S.C. 1701j-3 lets lenders enforce due-on-sale clauses. Its exceptions are mostly family events, like a transfer to a spouse or children or to a relative after the borrower’s death. An ordinary sale to a stranger isn’t one of them.

How do people cover the equity gap?

With cash, mostly, and that’s where a no-money-down plan tends to end. The other routes are narrower than they sound.

• A gift from family, if your servicer accepts it and it’s documented.
• A second loan from a lender willing to sit behind the assumed mortgage.
• A seller who carries the gap as a note, which is seller financing for that slice.
• A lower price, if the seller’s in a position to take less.

On FHA loans, HUD’s older Handbook 4155.1, chapter 7 allowed secondary financing for an assumption when its terms were clear and included in underwriting. It didn’t allow seller cash contributions to help the assumption without reducing the loan balance, while letting the seller pay normal closing costs. HUD has since moved its policy into Handbook 4000.1, so ask your servicer what applies today.

If the seller holds a note, read up first. NAR’s seller financing page says it doesn’t carry all the consumer protections of a traditional mortgage. Under the CFPB’s Regulation Z, a seller who finances three or fewer properties in 12 months can stay outside the loan originator rules only by meeting conditions, including a good-faith belief you can repay. Our guide to how seller financing works goes through the terms. Hire a real estate attorney before you sign, and Nolo is a decent place to learn the vocabulary first.

And if you’re hoping the seller will simply pay the gap for you, that’s a separate question, answered in whether a seller can pay your down payment.

What else do you pay to assume a mortgage?

Even a zero-gap deal costs something. VA’s funding fee on an assumption is 0.5% of the loan. On a $350,000 balance that’s $1,750, and VA waives it for certain borrowers, such as those receiving compensation for a service-connected disability. Federal law has VA cap what a lender may charge to process the application, and FHA servicers may charge processing fees as well. Ask for the number in writing.

Then come title, recording and any attorney fees, and whatever the servicer requires at transfer. Plan on patience, too. HUD’s older handbook gave lenders up to 45 days for the credit review after receiving all documents, and the whole thing can run longer. Build that into your contract date. For a general picture, see minimum down payments and government-backed mortgage programs.

Is assuming a loan worth it if you borrow the gap?

Run the payment both ways. Freddie Mac put the 30-year fixed average at 7.18% on November 5, 2026. Take a made-up example: a $350,000 balance at 3.5% carries principal and interest of about $1,572 a month over 30 years. The same balance at 7.18% would run about $2,371. That’s a real gap of roughly $800 a month.

Now add a second loan for the $67,500, at whatever rate you can actually get, and remember the assumed loan keeps its remaining term rather than starting fresh. You’re paying off what’s left on the seller’s schedule, so you may have fewer years than a new 30-year loan would give you. The savings can still be real. They’re smaller than the headline, though, and they depend on the second loan. Get the actual payoff figures from the servicer before you get attached. The CFPB has plain-English help on comparing loans, and the Federal Housing Finance Agency tracks national home prices.

What should a seller ask before agreeing?

One question above the others: will I be released from liability? Under 38 U.S.C. 3714, a VA seller who gives written notice before the sale, on a current loan with a qualified buyer, is relieved of further liability to VA. On FHA loans, HUD’s process ends with a formal release once a creditworthy buyer signs the assumption agreement. Get that release on paper.

VA sellers should also ask about entitlement. VA’s lender manual, which we saw only as a search excerpt, says a release of liability doesn’t free up the veteran’s entitlement unless the buyer is a veteran who substitutes their own. That can affect the seller’s next VA purchase. For the rest of what happens to a loan at sale, see what happens to your mortgage when you sell.

Selling a home with an assumable loan through Beycome? You can add that to your listing description yourself from the dashboard, and offers and e-signatures stay in one place. Get the servicer’s terms before you advertise it. 22,000+ have listed with Beycome (Beycome internal data, October 2026), and packages start from $99 in most states.

How can Beycome help a buyer short on cash?

The buyer program has no upfront fee. Beycome keeps 1% of the price (minimum $1,499) and credits the rest of the buyer-agent commission to you at closing, with lender approval. It applies on homes where a commission is offered, and not on FSBO homes or homes listed by Beycome sellers. It isn’t available in Alabama or Tennessee because state law bars it, and rules vary elsewhere. Don’t count on it to fill an equity gap; ask your servicer how it can be applied in an assumption.

In Florida, Beycome Mortgage (NMLS #2523620) can walk you through down payment and closing cost questions; it’s licensed in Florida only, and the buyer credit never depends on using it. Beycome Title closes sales in Florida, Texas, Michigan, Ohio, Illinois and Indiana. If you’re considering an assumption, ask upfront whether they can handle that file.

Frequently asked questions