The Assumable Mortgage Strategy Title Agents Should Be Talking About

In today’s high-rate market, everyone’s looking for creative ways to help buyers afford more home—and help sellers stand out.

Enter: The Assumable Mortgage Strategy.

This underused tool lets buyers take over a seller’s low-rate mortgage (typically 2.5% to 4%) instead of starting fresh at today’s 6%+.

As a title agent, understanding and promoting this strategy can make you an invaluable resource to your agent and lender partners.

Here’s how it works:

🔑 What Is an Assumable Mortgage?

An assumable mortgage lets a buyer take over the seller's existing loan, including its interest rate and terms.

• Common with FHA, VA, and USDA loans

• Buyer must qualify with the original lender

• Buyer covers the gap between the loan balance and purchase price (cash or second mortgage)

💸 Example

• Home price: $450,000

• Seller's loan balance: $320,000 @ 3.25%

• Buyer assumes $320K loan and brings $130K via cash or second loan

• Buyer enjoys a blended rate far lower than current market options

⚡ Strategic Use Cases

🏠 Buyers — Afford more home without inflating their monthly payment
📈 Sellers — Market their low-rate mortgage as a feature
💼 Investors — Lock in better cash flow on buy-and-hold deals
🧑‍💼 Realtors & Lenders — Offer creative financing options that close more deals

🔒 What Title Agents Should Be Doing

• Help agents understand which loans are assumable

• Guide buyers through how to structure the gap (cash, second lien, seller financing)

• Coordinate with lenders to ensure assumptions are approved

• Educate your partners with simple flyers, webinars, or closing day scripts

⚠️ Watchouts

• Only government-backed loans are assumable

• VA entitlement may not transfer unless buyer is VA-eligible

• Requires lender approval and full documentation

• Can take longer to close without preparation

📆 Use It In Your Business

• Create a co-branded flyer: "Is Your Mortgage Assumable?"

• Run a Realtor or lender lunch & learn

• Build a simple explainer video in Loom to share on LinkedIn

Title agents who bring financing ideas to the table aren’t just vendors—they become strategic partners.

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