Assumable Mortgage Homes for Sale in Colorado

Assumable Mortgage Homes in Colorado: What You Are Looking At

Every listing on this page says the seller's loan can be assumed. On an FHA or VA loan from 2020 to 2022 that means a rate in the 2s or 3s instead of today's rate. The catch: you pay the seller's equity in cash or with a second loan, you qualify with the servicer, and the servicer takes 45 to 120 days. VA loans can be assumed by non-veterans, but the seller's entitlement stays tied up unless the buyer is also VA-eligible.

How an assumption works in Colorado

• Step 1: confirm the loan type. FHA, VA and USDA loans are assumable. Conventional loans almost never are.
• Step 2: get the servicer's assumption package and their timeline in writing before you write the offer.
• Step 3: price the equity gap. Price minus loan balance is what you bring, in cash or with a second mortgage.
• Step 4: write the offer with an assumption contingency and a realistic closing date.

Questions buyers ask

Can anyone assume a VA loan?

Yes, if the servicer approves you. A non-veteran buyer can assume a VA loan, but the seller's VA entitlement stays with the loan until it is paid off, which many sellers refuse.

How long does an FHA assumption take?

Plan on 45 to 120 days from application to closing. Servicers are slow and the seller has to stay patient.

Do I need a down payment?

You need the equity gap. If the home is $500,000 and the loan balance is $380,000, you need $120,000 in cash or a second loan.

Call or text 303-955-4220. A live person answers. Read the Colorado assumable mortgage guide, compare FHA and VA buying, or see what sellers are giving buyers right now.