Through a process known as loan assumption. When you assume the loan on a home, you take over the same loan terms the seller had, including their interest rate.More than 60% of all active mortgages have rates below 4%, which usually means a much lower monthly payment than what you could get at today's rates on a new loan!

Anyone who qualifies for the lender's criteria can assume a loan. They typically look for strong employment history, a credit score over 620, and a debt-to-income ratio of less than 43%. Lenders may require you to be a U.S. citizen or permanent resident and at least 18 years old.

To calculate your debt-to-income ratio, sum the monthly payment of all debts you have - credit cards, student loans, car loans, auto loans, etc., and add in the expected monthly payment on your mortgage. Then, divide the result by your monthly income.

Pre-qualifying with Roots means checking if Roots will be able to support you in the loan assumption process, which is important to us so we do not waste your time. Roots is not a lender and does not make lending decisions. The lender of the mortgage you want to assume will run a standard credit and financial package review to determine if you can be approved as a borrwer.

Beyond saving on interest, assuming a loan usually means lower closing costs and the ability to avoid some of the fees that come with loan originations. Assuming a low-rate loan can help your home retain value! If you want to move in a future where interest rates are higher than they are on your loan, the ability to transfer your loan to yet another buyer could mean a larger pool of qualified buyers.

Use our website to browse hundreds of homes currently on the market with assumable loans. When you're ready to tour homes IRL, we can pair you with an agent to help you find the perfect one, or you can work with your own agent!

Before submitting an offer for a home with an assumable loan, Roots will pre-qualify you to ensure we are confident in our ability to support you in the loan assumption process. This does not mean you're pre-qualified for the loan, as only the lender can make lending decisions.

Once an offer is accepted, Roots will support a fast and easy closing. At this point, a credit and financial package will be reviewed by the lender, and the lender will make a lending decision.

Assuming a mortgage is very similar to the process of obtaining a new loan with a lender, but often less expensive due to lower fees.

If you're using a Roots agent, our loan assumption services are free. With an external agent, the fee is 1% of the purchase price or $3,000, whichever is higher, payable at closing. Your agent can negotiate with the seller to cover this fee.

Loan servicers typically charge a funding fee:0.5% of the remaining loan balancefor VA loans,or up to $1,800 for FHA loans—much lower than traditional mortgage origination fees.

Expect typical closing costs, which may include agent commissions, document processing, inspections, and other fees, often totaling 2-3% of the purchase price. Additional fees like appraisals may apply if you're getting a second mortgage, and the lender will be able to provide a detailed breakdown of those before you commit.

Curious about what fees may be for a specific property? Reach outhere,and a Roots agent will provide you with an estimate!

The agent representing you can try to negotiate a credit for fees with the seller's agent!

Most customers close in under 8 weeks.

During the pre-qualification process, Roots exclusively runs soft credit checks because we are not a lender. Soft checks do NOT impact credit scores. However, after you submit an offer to buy a home and the offer is accepted, the lender will very likely run a hard inquiry on your credit, which can impact your credit score.

All FHA and VA loans, and many USDA loans can be assumed. Conventional loans usually aren't assumable unless it's specifically mentioned in the loan terms.

Yes, Roots can help you buy any home on the market, not just assumable ones! And we make that really easy, too. :)

Yes, if you meet the lender's and the VA's requirements. It is also important to note that if you're not a VA-borrower, the seller's VA entitlement will stay with the home. Depending on the seller's plans, they may or may not be open to having a non-VA borrower assume their loan. Roots will help you find out!

An important part of closing is ensuring the seller is fully released from liability. This is one of the many things Roots supports.

Downpayment amounts vary between homes. They can be as low as 0% plus closing costs (yeah, really!) Don't want to put a ton down? We got you! We can recommend a lender to support you in obtaining a second mortgage to reduce your downpayment to as little as 5%.

We will recommend a lender who will make it super easy and who will provide competitive rates. Roots will follow the status of your second mortgage and provide you with regular updates on the progress of your closing!

Yes, just like with a traditional purchase, you will be required to pay a deposit when you go under contract. The deposit requirement is typically about 1% of the purchase price but can be 2-3%. Usually, deposits must be paid to escrow within a day or two of offer acceptance.

There's no difference, it's the same process! Once your offer is accepted, your agent will set up an inspection. If the inspector finds anything major, your agent will work with you to find a solution, or support you in cancelling.

Homes with FHA loans must be owner-occupied for at least 12 months. After that, you could rent the home out. Homes with VA loans can be used as investment properties as long as the prior owner lived in the home for at least 12 months.

Roots Brokerage does! Roots Brokerage charges a 1.5% commission on the purchase price to represent buyers. The agent you work with will ask the seller of the home you buy to cover the fee, but if they don't agree, you will need to pay it at closing. If you use a licensed real estate agent from Roots Brokerage to buy a home with an assumable loan, the assumption fee is included in the commission!

Roots earns a fee when buyers successfully close on a home with an assumable loan. If you're using an agent from Roots Brokerage, Roots Brokerage pays Roots a fee of 1% of the purchase price. If you use an external agent, you'll be charged a fee of 1% or $3,000 (whichever is greater) at closing. This fee is separate from any commission that Roots Brokerage might earn as part of the real estate transaction.

At Roots, we guarantee to be able to close on homes with assumable loans within 45 days, provided there are no delays from the seller's side. If the deadline isn't met, we'll reimburse the seller's mortgage payment (principal and interest) after receiving their simple claim submission including a copy of the mortgage payment they made, for up to 15 days starting from day 46 through day 60, per the terms of our 45-day guarantee. We've got you covered to ensure a smooth and worry-free transaction!

Currently, Roots is available throughout Arizona, but we're expanding quickly. To request our next city, fill out the form below!