Mastering Assumable Mortgages in Colorado’s High-Interest Market

Introduction: An Unexpected Opportunity in a High-Rate Era

Hello, Jerad Larkin here. If you're a real estate agent or investor in Colorado — especially along the Front Range in places like Denver, Colorado Springs, and beyond — you need to know about assumable mortgages. They’re quickly becoming one of the most powerful tools in our current high-interest-rate market.

In mid-May 2025, I had the opportunity to attend a game-changing, four-hour class in Colorado Springs, hosted by UME Home Loans and taught by Mike Roberts, the owner and lead educator. Mike is a powerhouse when it comes to creative financing, and the room was packed with agents and investors looking to level up their understanding of assumable loans. You can learn more about him and his company here: umehomeloans.com

The class was packed with insight, real-life examples, and detailed breakdowns of how agents and investors alike can leverage low-interest, assumable loans to help their clients stand out — and close more deals.

Imagine this: you’ve got a listing where the seller has a 3% mortgage. Rather than scaring off buyers with today’s 7% rates, what if you could market that low-rate loan as part of the deal? That’s the beauty of an assumable mortgage — the buyer steps into the seller’s existing loan (rate and term included), avoiding the pain of current market rates.

In this blog, I’m breaking down everything I learned from Mike’s class — and trust me, there’s a lot to unpack. We’ll cover:

• The nuts and bolts of FHA, VA, and USDA loan assumptions

• Creative financing strategies like “subject-to” and wraparound deals

• Step-by-step walkthroughs of how assumptions actually work in practice

• The biggest challenges and red flags agents should watch for

• Real-life case studies from the class that show how powerful (and tricky) these deals can be

• Marketing strategies to attract buyers with assumable options

What I appreciated most about this session is that it wasn’t fluff — it was tactical, Colorado-specific, and full of examples that apply right now. Mike shared how places like Colorado Springs have become hotspots for VA loan assumptions, and why agents who understand this tool have a serious edge.

Whether you’re new to the business or a seasoned pro, my goal with this post is to equip you with the practical knowledge and confidence to talk about, market, and close assumable deals. You’ll see exactly why this topic is getting so much buzz — and why most agents are still completely missing the boat.

So grab your coffee (or protein shake), and let’s dive into what could be one of the most underrated opportunities in Colorado real estate right now.

PS: I’ll be speaking in the first person throughout the rest of this post to share my personal takeaways, opinions, and reactions to what was taught in the class — but all credit for the training goes to Mike Roberts and UME Home Loans. If you’re interested in attending one of their future classes, check out umehomeloans.com.

What Is an Assumable Mortgage?

An assumable mortgage is a home loan that can be transferred from the current homeowner to a new buyer, with the buyer taking over the remaining loan balance, interest rate, and terms. Instead of the buyer getting a brand-new mortgage at current rates, they step into the seller’s shoes – continuing payments on the seller’s original loan.

The key benefit is that the buyer keeps the loan’s existing low interest rate (often much lower than today’s rates) and avoids many closing costs associated with a new loan.

Not all loans are assumable. In fact, most conventional mortgages (those backed by Fannie Mae or Freddie Mac) are not – they typically have a “due-on-sale” clause requiring the loan to be paid off when the property transfers ownership. However, government-backed loans do allow assumption. The three major types of loans that are commonly assumable are:

• FHA Loans – Mortgages insured by the Federal Housing Administration. Nearly every FHA loan has an assumable clause.

• VA Loans – Home loans guaranteed by the U.S. Department of Veterans Affairs. All VA loans are assumable (we’ll discuss special rules in a moment).

• USDA Loans – Home loans from the U.S. Department of Agriculture for rural properties are also assumable under certain conditions.

Key point: If a loan is assumable, it doesn’t mean anyone can just take it over with a handshake. The buyer must qualify with the lender or loan servicer under the original loan’s guidelines (credit, income, etc.) and get the lender’s approval for the assumption. In other words, there’s a formal process to “novate” the loan into the buyer’s. We’ll cover that process in detail soon.

So why isn’t every deal an assumption deal these days? Well, assumable mortgages have been around for a long time, but when interest rates were low across the board, there wasn’t much difference between assuming a loan or getting a new one. In 2020-2021, for example, a buyer could get a new 30-year loan at ~3% on their own – so assuming someone’s 3% loan wasn’t a unique selling point.

Fast forward to today: rates have skyrocketed, and that’s where assumables shine.

A qualified buyer can take over that old 3% loan and avoid a new 7% loan – an opportunity that’s turning heads in 2025. Both buyers and sellers stand to gain:

• Buyers save on interest (lower monthly payments) and often save on upfront costs (no new loan origination, lower funding fees, etc.).

• Sellers can market their low-rate loan as an incentive, potentially attracting more buyers and even commanding a higher sale price because of the built-in financing

Let’s put this into perspective with a quick example:

Assumable vs. New Loan – What’s the Savings?

Suppose a seller has an FHA loan with a $300,000 balance at a 3.0% interest rate, and a buyer is considering assuming it. If that buyer instead took out a new loan at today’s ~7.0%, here’s how the principal & interest payments would compare:

Loan Amount	Interest Rate (APR)	Monthly Principal & Interest (30-year term)
$300,000	3.0%	~$1,265 per month【30†】
$300,000	7.0%	~$1,996 per month【30†】

That’s a difference of over $700 per month in payment! Over just the first year, the buyer would save about $8,400 in payments. Over the remaining life of the loan, the savings could be tens of thousands of dollars.

Of course, it’s not quite as simple as “take over the payment and done.” The buyer must still reckon with the home’s equity (the seller isn’t going to just give the house away – the difference between the home’s price and the loan balance has to be paid somehow, usually as a down payment or second loan – we’ll discuss this “assumption gap” soon). And the buyer must meet the lender’s qualifications to get the green light.

But the bottom line is clear: Assumable loans allow a buyer to lock in a rate from the past, often half of today’s rates. In a market where every dollar of monthly payment matters, this is a compelling advantage.

In the next sections, we’ll break down each type of assumable loan (FHA, VA, USDA) and how they work, including who can qualify, what the process looks like, and any special rules or fees to be aware of. By understanding the nuances, you’ll be able to spot opportunities and avoid pitfalls for your clients.

Why Assumable Loans Matter (Especially in Colorado’s Market)

You might be thinking, “This sounds great in theory, but how big of a deal is this really?” Let me assure you – it’s huge, especially given our current market conditions. To set the stage, consider a few facts:

• As of late 2023, over half of U.S. homeowners had mortgage rates under 4%. In Colorado, a large number of folks bought or refinanced in 2020–2021 when rates were at historic lows (2.5–3.5%). Those low-rate loans are sitting out there like buried treasure.

• Meanwhile, current 30-year fixed rates are hovering around 7% (give or take). That’s nearly double the cost of money compared to those existing loans.

This has led to what economists call the “mortgage rate lock-in” effect – homeowners are hesitant to sell and give up their super low rates, which has contributed to our inventory shortage. However, assumable loans offer a workaround: a seller can pass their low rate to the buyer. It’s a way to unlock transactions that otherwise wouldn’t happen.

Colorado’s Front Range, in particular, stands to benefit from more awareness of assumable loans. We have a significant military presence (think Colorado Springs’ bases, veterans in Denver metro, etc.), meaning VA loans are common here – and VA loans often carry low rates and are fully assumable by new buyers. Likewise, many first-time buyers in recent years used FHA loans along the Front Range, locking in 30-year rates as low as 2.75–3.5%. Those FHA loans are potential gold mines for the next buyer if marketed correctly.

In fact, we’re already seeing activity: one set of assumption experts noted that the Colorado Springs area has become a hotspot for assumption deals, with demand growing exponentially. (It’s no coincidence that I chose Colorado Springs for our big class – the interest is real.) They are processing files all over the country, but most of their activity was around Colorado Springs, indicating our local market is ahead of the curve on leveraging assumptions.

A Unique Selling Proposition for Sellers

For sellers, being able to advertise “Assumable loan at 2.5%! Take over my mortgage.” is like wrapping your listing in a big red bow. It can attract more buyers and even justify a higher sale price. Why? Because a buyer’s total cost of ownership is lower with that cheap loan, they might be willing to pay a premium on the home’s price. As a real-world example, one of my colleagues shared a story of a Denver-area home that sold for well above market value because the seller’s VA loan at 5.125% was assumable – the low payment offset the higher price, and the home sold faster than its competition

Even if not aiming for a higher price, offering an assumable loan can make your listing stand out. It’s a powerful marketing hook (we’ll talk marketing strategies in detail later). In a crowded listing market or a slower economy, that could be the difference between a property sitting versus selling.

A Lifeline for Buyers (Affordability Boost)

For buyers, assumable mortgages are one of the few ways to dramatically improve affordability without needing the market or the Fed to change anything. If you can assume a loan at, say, 3%, you might save hundreds per month as we showed above. In fact, a VA loan assumption could lower a buyer’s costs by “hundreds of dollars” a month in interest savings if the original loan was around 3% and current rates are around 7%. Over years, that’s real money that can go to other needs (or allow the buyer to afford a more expensive home than they otherwise could).

In high-cost areas like Denver, bridging the affordability gap is crucial. Assumptions can also help first-time buyers who are stretched thin – perhaps they can afford the monthly payment on a home if they get that 3% rate, even if they wouldn’t qualify at 7%. It’s like someone locked a 3% rate in a time capsule, and the buyer gets to inherit it.

Inventory and “Locked-In” Owners – A Trend Shift?

We touched on the “lock-in” effect: a huge portion of homeowners have sub-4% loans and are reluctant to move (because they don’t want to trade a 3% mortgage for a 7% one). This has reduced the number of homes on the market. If assumptions become more common knowledge, some of those owners might be tempted to sell after all – because they can offer their 3% loan as a selling feature. In other words, assumable loans could help unlock some inventory by making it more palatable for sellers to let go. They aren’t “wasting” their low rate; they’re using it to make their home sale easier or more profitable.

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From an agent’s perspective, this is huge. We all know someone (or many folks) who said, “I’d move, but I’m never giving up my 2.75% mortgage!” Now you can approach those clients with a new angle: “What if that 2.75% could attract your home’s buyer and even get you a better price? Let’s talk.” I guarantee that will open some eyes. (Pro tip: later in this article, I’ll mention how I can help you identify which homes in your farm or database have FHA/VA loans – it’s a great prospecting strategy.)

High Rates Won’t Last Forever… But Low Rates Are Here Now

Many economists expect rates will eventually come down from current highs – but even if they drop from ~7% to, say, 5% in a year or two, that’s still higher than a lot of existing loans. The window of opportunity for assumptions is likely to remain open for years, because there are so many loans out there from 2019–2021 in the 2–4% range. Some of those will inevitably change hands, and savvy buyers/sellers will utilize assumptions to do it.

However, there is urgency in another sense: If you’re one of the first in your market or office to master assumable mortgages, you can differentiate yourself. Right now, I still encounter agents who either aren’t aware a loan is assumable or assume it’s “too complicated.” As you’ll see, it’s not too complex – it’s just different.

By mastering this, you become a valuable resource for clients and other agents alike. (In my class, we joked that after you close one assumption deal, you suddenly become the local “assumption specialist” because hardly anyone else has done one!)

The Colorado real estate community is catching on, but there’s room for more experts. My team and I are here to help you become one of them.

Alright, hopefully you’re convinced that this is worth your time. Next, let’s break down the nuts and bolts: how FHA, VA, and USDA assumptions each work. It’s important to know the rules so you can guide your clients properly and avoid chasing deals that won’t fly.

(SEO note: Whether you searched for “assumable loans Colorado,” “how to assume a mortgage,” or “Denver assumable homes,” you’re in the right place – we’re covering all those topics right here.)

Types of Assumable Loans and Their Guidelines

Not all assumable loans are identical. FHA, VA, and USDA loans each have their own guidelines and quirks. Let’s take them one by one, and then we’ll discuss some creative options outside of these.

FHA Loan Assumptions – How It Works

FHA loans (backed by the Federal Housing Administration) are widely used by first-time buyers and others who need low down payments. The good news: Every FHA loan is assumable by a qualified buyer. This has been true for decades, though there’s a key date: FHA loans originated after Dec 15, 1989 require the new buyer to fully qualify (credit, income, etc.) for the assumption. Loans before that date allowed something called “simple assumption” (no qualifying), but those are extremely rare now (and if you do find one, call me immediately – that’s a unicorn!). For practical purposes, any FHA loan you encounter will require the buyer to go through an application and approval with the current loan servicer.

Qualification requirements: The buyer must meet FHA’s credit and income standards (similar to if they were getting a new FHA loan). Typically, that means credit scores at least ~580, a debt-to-income ratio around 43% or lower (though sometimes up to ~50% with compensating factors), and stable income. Essentially, the lender will underwrite the buyer as if they are a new borrower, except there’s no shopping for rate/terms since those are set by the existing loan.

One nuance: The FHA program is intended for owner-occupants, and that carries over to assumptions. The buyer must intend to occupy the home as their primary residence to assume an FHA loan. You cannot assume an FHA loan on an investment property or second home – FHA (and the lender) won’t allow it. In fact, investors cannot assume FHA loans at all under current rules. You cannot assume an FHA loan on an investment property or second home – FHA (and the lender) won’t allow it. In fact, investors cannot assume FHA loans at all under current rules

Process overview: Here’s a simplified rundown of an FHA assumption process:

1. Seller (or agent) notifies the lender/servicer that there’s an interest in a possible assumption. The servicer will provide instruction on how the assumption process works on their end. Every servicer has a slightly different procedure, but most will have the buyer fill out a credit application and submit financial documents (just like a loan app).

   
   

2. Buyer applies for the assumption through the servicer. They will check credit, income, etc. The buyer will need to meet the FHA Handbook guidelines (e.g., no excessive debt, sufficient income for the payment, etc.). The current loan terms remain the same – same interest rate, same remaining years, and the FHA mortgage insurance stays as well (the buyer will continue paying the monthly MIP that the seller was paying, if any).

   
   

3. Approval and assumption agreement: If the buyer is approved, the servicer will issue an assumption approval and prepare an Assumption Agreement for closing. This is a document for the buyer and seller to sign, along with possibly a release of liability for the seller.

   
   

4. Closing: The sale closes like any other sale, but instead of paying off the existing FHA loan, the closing documents will reflect that the loan is being assumed. The buyer will bring funds to cover the “assumption gap” – which is the difference between purchase price and the loan balance being assumed. (For example, if the home price is $450,000 and the FHA loan balance is $300,000, the gap is $150,000. The buyer might cover that with down payment cash, secondary financing, or a combination. We’ll talk more about dealing with the gap soon – it’s one of the biggest challenges.) The title company and lender will coordinate on recording documents. Typically, there’s a recorded document or modification indicating the loan is now assumed by the new borrower.

   
   

5. After closing: The buyer takes over payments going forward. The seller is released from liability on the FHA loan if the assumption was done with lender approval/novation (which it should be in this process). It’s always advised that the seller obtain and keep a copy of the release of liability from the lender for peace of mind. From this point, the buyer owns the home and pays the FHA loan each month, just as if they were the original borrower.

   
   

   Costs and fees: One reason buyers love assumptions is the lower cost. With FHA loans, there is no new upfront FHA insurance fee (the 1.75% upfront MIP was already paid by the original borrower, if it was a purchase loan). The buyer might pay a small assumption fee to the lender and possibly a credit report fee. Historically, FHA capped assumption fees at around $500. However, FHA recently increased the maximum allowable assumption fee to $1,800 to encourage lenders to process assumptions more efficiently.This change (announced in May 2024) is great news – it means lenders/servicers can charge a bit more (up to $1,800) for their work on an assumption, which should incentivize them to handle these transactions faster instead of putting them on the back burner. In my experience, many servicers were dragging their feet on assumptions because they could only charge a few hundred dollars even though it took considerable staff time. Now, with higher fees allowed, we expect smoother sailing (fingers crossed!).

One nuance: The FHA program is intended for owner-occupants, and that carries over to assumptions. The buyer must intend to occupy the home as their primary residence to assume an FHA loan. You cannot assume an FHA loan on an investment property or second home – FHA (and the lender) won’t allow it. In fact, investors cannot assume FHA loans at all under current rules. You cannot assume an FHA loan on an investment property or second home – FHA (and the lender) won’t allow it. In fact, investors cannot assume FHA loans at all under current rules.

Even at $1,800 max, that fee is usually much less than the cost of a new loan origination. (For context, a new $300k FHA loan might have 1–2% origination plus other lender fees, which could be $3,000–$6,000, not to mention appraisal costs, etc.) FHA assumptions typically don’t require a new appraisal in most cases, as long as it’s an outright assumption and not some kind of modification – the lender is primarily concerned with the buyer’s ability to pay, not re-valuing the property.

Owner-occupancy requirement: To reiterate, the buyer must intend to live in the home. This usually isn’t formally policed after closing, but the buyer will sign documents that they will occupy, and if they immediately rented it out, they’d be violating FHA rules (and potentially triggering a loan call-in). As agents, we should not facilitate anything that skirts this – so basically, don’t plan on using an FHA assumption for a purely investment purchase. (If your investor client truly wants that loan, maybe they can move in for a year and then rent it, but that’s between them and their conscience; as a strategy it exists, but as a professional I have to advise compliance with loan terms.)

What about FHA’s mortgage insurance (MIP)? The assumption does not reset or refund any mortgage insurance. The buyer will continue to pay the monthly MIP that’s attached to that loan. If the loan had an FHA Case Number assigned after June 2013 and was with minimum down payment, it likely has lifetime MIP (until payoff in 30 years). If the original loan had >10% down, the MIP may fall off after 11 years – so if a buyer assumes a 5-year-old FHA loan that had 15% down, they might only have ~6 years of MIP payments left. Regardless, the terms are the terms – the buyer steps into exactly what the seller had. It’s worth explaining to buyers: “You get their 3.25% rate, and you’ll pay the FHA mortgage insurance just like they have been.

That insurance is an unfortunate extra cost, but it was priced into the deal the seller got, and likely the payment is still far lower than a new conventional loan at today’s rate would be.” Sometimes people forget to factor MIP in their excitement over the interest rate; as the agent or advisor, you should bring it up so there are no surprises.

Example scenario (FHA): A young family in Aurora wants to sell their starter home to move up, but they’re nervous because their FHA loan at 2.75% is so affordable. We list the home and prominently advertise “Assumable FHA loan @ 2.75% – save $$$ on your mortgage!” We get a ton of interest. A buyer comes along who fell just short of qualifying for other homes at 7% rates, but with this assumable loan, they qualify (the payment is that much lower). The buyer still has to bring a sizable down payment to cover the difference between the sale price and the loan balance, but they were fortunate to have equity from a previous home sale.

The buyer’s agent and I coordinate with the lender (after some hold music and transfers, we get to the right department!). The assumption process takes about 7 weeks. We close a little later than a typical deal, but everyone is happy. The seller got their home sold in a tough market (and frankly may have gotten a slightly higher price because of the low-rate loan attached), and the buyer got a house payment they can afford without stretching.

We, as agents, looked like magicians for making it happen. And yes, we had to do more legwork than usual (lots of follow-ups with the servicer’s assumption department), but that’s what sets you apart.

Now onto one of my favorites, the VA loan – which has some unique twists.

VA Loan Assumptions – How It Works (Not Just for Veterans!)

VA loans are mortgages for eligible military service members and veterans, guaranteed by the Department of Veterans Affairs. They often have excellent terms: zero down payment, no monthly mortgage insurance, and historically low interest rates. And here’s perhaps the most surprising fact for those unfamiliar: VA loans are assumable by any qualified buyer – not just veterans.

That’s right, you do not have to be a veteran or in the military to assume a VA loan (though there are important considerations regarding the VA entitlement, which we’ll get into). If you take nothing else from this section: a civilian buyer can assume a VA loan at, say, 2.5% interest, as long as they meet the credit/income qualifications and intend to occupy the home.

This point blew some minds in our class. Many assumed only a vet could get the benefit of a VA rate – not so! The VA cares that the original loan is paid as agreed; if a new owner can do that, they allow the assumption.

Qualification & Requirements:Similar to FHA, the buyer must fully qualify with the current servicer (credit check, debt ratios, etc.). VA loans typically require the buyer to have decent credit (often 620+ score, though there’s no official minimum from the VA—lenders impose their own) and manageable DTI (often around a 41% ratio guideline, but it can be higher with residual income considerations).

The buyer must plan to occupy the property as their primary residence – VA loans are intended for owner-occupied homes, and the VA will not approve an assumption to someone who says it’s an investment or second home. So again, no pure investors allowed on a formal VA assumption (more on investor workarounds later).

Substitution of Entitlement (for Veterans):One interesting aspect: If the person assuming the VA loan is a qualified veteran with their own VA entitlement, they have the option to substitute their entitlement for the seller’s entitlement on the loan.

What does that mean? When a veteran originally gets a VA loan, part of their VA entitlement (a dollar amount guaranty from the VA) is tied up in that loan. If another veteran assumes the loan and substitutes entitlement, the original veteran’s entitlement is freed up – allowing the seller (original vet) to potentially get another VA loan down the line without their previous entitlement being tied up. This is often called a “release of entitlement.”

On the other hand, if a non-veteran assumes the loan (or a vet who doesn’t substitute entitlement), the original veteran’s entitlement stays with that loan until it’s paid off. Practically, this means sellers who are veterans might prefer a veteran buyer to assume, so they can regain their VA home loan benefit for future use.

Some veteran sellers will explicitly say, “I’ll only do the assumption if a fellow vet is taking it over,” especially if they want to buy another home with a VA loan soon. Others might not mind leaving their entitlement behind, particularly if they aren’t planning to use it again (or if they have remaining entitlement to use).

As an agent, you should have this conversation with a VA seller considering an assumption: Do they need their entitlement back? If yes, you target veteran buyers. If no, you can open it up to any buyers. Either way, the seller should get professional advice and understand the implications. (I always recommend they talk to their VA lender or regional VA loan center if they’re unclear, and ensure any assumption has proper paperwork.)

Seller’s Liability:A critical point – and this goes for FHA & USDA too – is that the seller must be released from liability at assumption closing. In a formal assumption, if done correctly, the lender releases the original borrower from responsibility. The new buyer signs an agreement taking over the debt, and the seller is no longer on the hook if the new buyer defaults.

The VA specifically requires a release of liability for the seller during an approved assumption. As a title professional, I make sure that document is part of the closing package. Sellers should never agree to an assumption without a written release of liability from the servicer.

If an assumption were done informally without lender approval – essentially a “simple assumption” – the seller would remain liable. That’s a huge no-no unless it’s some intrafamily or trusted situation. Always do it the proper way with VA sign-off. The VA even highlights in their guidelines and consumer education that sellers should get that release to protect themselves.

So, rest assured, if you facilitate an approved VA assumption through the lender, the seller’s credit won’t be harmed by future buyer actions (and the VA guaranty is still attached to the loan for the new buyer).

Costs and Fees for VA Assumptions:One of the best parts of VA assumptions – the fees are minimal. The VA does charge a one-time funding fee of 0.5% of the loan balance for an assumption. Compare that to normal VA purchase loans where a first-time use VA funding fee is 2.15% (down to 2.01% in 2023) and higher for subsequent use – 0.5% is a steal.

If the buyer is a veteran who is funding fee exempt (due to a service-connected disability rating or other exemption), they might not have to pay that 0.5% at all. The VA does allow exemption for assumptions if the assuming vet is exempt.

Aside from the funding fee, the servicer can charge a processing fee (capped by VA rules). Currently, VA allows a base fee of $300 (for most servicers with automatic authority; $250 for those without).

Additionally, VA recently introduced a “locality variance” add-on to that fee to account for regional cost differences. In the Western region (which includes Colorado), the allowable locality add-on is $463. So a Colorado servicer could potentially charge up to around $763 total for processing the assumption ($300 + $463). Some may not charge that full amount, but that’s the ceiling.

All told, the buyer’s cost to assume a VA loan might be roughly the 0.5% funding fee + ~$300–$750 in processing fees + maybe a credit report fee. That’s usually dramatically less than starting a new loan (no new appraisal fee, no big origination fee, etc.).

No Appraisal and Other Perks:VA assumptions typically do not require a new appraisal or termite inspection or any of those things that a new VA loan might require. The buyer is agreeing to the purchase price regardless of the loan amount. (If the buyer was worried about overpaying relative to value, they could still optionally get an appraisal, but it’s not for the loan – it’s for their own peace of mind or negotiation.)

Also, VA loans have no prepayment penalties, so the buyer can pay it off early or refinance later with no issue. They basically step into all the benefits the original vet had: low rate, no MI, flexible repayment.

Process Overview (VA):The steps are akin to FHA...

1. Seller/agent contacts the loan servicer’s assumption department to initiate. (Often the servicer will have a specific form or packet).

2. Buyer submits financials, gets approved by the servicer for the assumption.

3. VA and the servicer will coordinate the entitlement aspect. If the buyer is a veteran substituting entitlement, that will be arranged; if not, the seller will be informed their entitlement remains used. In either case, the release of liability for the seller is prepared as part of the closing.

4. Closing occurs at the title company. Instead of new loan papers, there’s an assumption agreement and related docs. The buyer pays the funding fee (0.5%) – often this is collected at closing and sent to VA – and any processing fee due to the servicer. The buyer also pays the seller for their equity (the gap).

5. After closing, the loan is in the buyer’s name (and if applicable, the VA entitlement is transferred). The buyer begins making payments. The seller can request their VA entitlement restoration if a vet took over and substituted (full entitlement restored if the assuming vet had full entitlement to swap in). If a non-vet assumed, the seller’s entitlement is tied up until that loan is eventually paid in full – something to keep in mind.

   
   

A note on investors and VA loans: The VA rules say primary residence only. Occasionally I get asked, “Could an investor assume a VA loan if they claimed they’d move in?” That would be loan fraud, so no. However, here’s a thought: house-hacking. If an investor is willing to become an owner-occupant (at least initially), they could live in the home for a while to satisfy the occupancy and later convert it to a rental.

For example, a savvy investor might assume a VA loan on a 4-plex, live in one unit for a year (VA loans allow 1-4 unit properties if the vet lives in one unit), then rent it all out later. That’s a legitimate strategy. It’s still an owner-occupant loan at the time of assumption, so it follows the rules. Later, life circumstances can change – people move, etc., and the loan doesn’t suddenly become due if the owner moves out years down the line. They just can’t state upfront that it’s purely an investment. So, while you can’t have your investor client assume a VA loan for a rental without living there, a client could plan to occupy then eventually rent. (I always urge honesty and following the rules, but occupancy is usually only certified for the initial 12 months. What happens after that isn’t policed.)

Real example (VA): In the class, I shared a story of an actual deal: A VA homeowner in Fountain, CO (near Colorado Springs) had a 2.875% VA loan. They needed to relocate but hated the idea of a buyer having to finance at 6.5% and potentially not affording the home. We found a buyer – interestingly, not a veteran – who was thrilled at the chance to take over that loan. The seller was not planning to use VA again soon, so they agreed to let a non-vet assume it. The buyer brought a sizable down payment to cover the difference between sale price and loan balance. The assumption took about 8 weeks to finalize. The buyer paid the 0.5% funding fee (around $1,200 on the ~$240k balance) and a few hundred in processing fees – far less than they would’ve paid on a new loan.

The seller got a quick sale above asking price because we had multiple offers wanting that loan. Everyone left happy. The buyer’s agent, who had never done an assumption, said it was a learning experience but was excited to have it in their toolbelt now.

Unique benefit recap (VA): No monthly mortgage insurance (so the payment is even lower than an FHA of the same rate would be), low funding fee, possible full entitlement restoration for the seller if another vet assumes, and generally very low default rates historically on VA loans (VA loans tend to be good loans). As an agent, if you encounter a listing with a VA loan, definitely explore the assumption angle.

And if you have buyer clients struggling with affordability, actively hunt for assumable VA loans – even if your buyer isn’t a vet. You might open up options for them (just remember they need either cash or secondary financing for the gap – which is the trickiest part).

We’ll address that “gap” issue after covering USDA, because it applies to all.

USDA Loan Assumptions: What Agents Need to Know

The buyer’s household income must be under the USDA income limits for the area (typically 115% of the area median income, adjusted for household size). This is a critical point: if the prospective buyer makes too much money, they can’t assume the USDA loan, because they wouldn’t have qualified in the first place. USDA assumptions are geared toward moderate-income buyers.

The buyer needs to have a decent credit history (generally a 640+ credit score is expected for automated approval, though some lenders might go lower with manual underwriting). The debt-to-income ratio should be around 41% or less, unless there are compensating factors. These are similar to the original USDA loan guidelines.

So, practically, you’re looking for a buyer who qualifies for USDA: moderate income, willing to live a bit rural. They don’t have to be a first-time buyer.

The Process and Approval Steps

The process involves the loan servicer and often the USDA office. Here’s how it usually goes:

1. Seller/servicer is notified.

2. Buyer submits an application (similar to FHA/VA, but includes verifying income for all household adults—even if they’re not on the loan).

3. The servicer underwrites the buyer using USDA rules and usually sends the package to USDA for approval (or just informs them if the servicer has delegated authority).

4. If approved, an assumption agreement is signed.

5. The USDA requires the loan to be current. The buyer must assume all obligations.

6. Closing happens, and the buyer begins making payments.

Important Caveat

If the seller’s loan is delinquent, USDA will not allow an assumption. The loan must be brought current first. The buyer can theoretically bring in funds to cure it, but if it’s seriously in default, USDA might not proceed with the assumption at all.

Costs Involved

USDA loans have an upfront guarantee fee (1% on new loans), but that is not charged again on an assumption. USDA also has an annual fee (like mortgage insurance) currently at 0.35% of the loan balance, which continues with the new buyer. Servicers may charge an assumption fee, typically between $300–$600 depending on the lender.

Timeline

USDA assumptions can take time. Plan for at least 60 days—sometimes even up to 90—especially if the USDA office is involved. Communication and expectation management are critical.

Key Benefits for the Buyer

• Possibly no down payment (but they must still cover any equity difference).

• Lower closing costs (no new guarantee fee or appraisal required).

• Keep the seller’s low interest rate (sometimes sub-3%).

• No reset of term (they continue the existing loan term).

• No new appraisal needed.

• Flexibility to refinance later.

Challenges or Limitations

• Cash for equity: If the property has appreciated, the buyer must pay the difference in cash, since second mortgages are often disallowed in USDA assumptions.

• Shorter loan term remaining: The buyer continues the seller’s term. A 7-year-old loan means 23 years left—not a new 30.

• Income limits: High-earning buyers won’t qualify.

• Geography restrictions: USDA is only available in eligible rural or suburban areas. In Colorado, that includes parts of Weld, Adams (east), Elbert, and areas outside Colorado Springs.

Example Scenario: USDA Assumption in Action

Let’s say a couple bought a home outside Fort Collins in 2019 using a USDA loan at 3.5%. In 2025, they owe $250,000, and the home is now worth $320,000. A buyer who meets USDA guidelines is interested. They have $30,000 in savings, but the equity gap is $70,000.

How do we solve this?

• Maybe the seller carries a second mortgage for $40,000.

• Perhaps a family member gifts $40,000.

• Or the buyer gets a personal loan (though this may impact DTI and cause denial).

If the buyer gets approved by the servicer and USDA, and they close in 60 days, they now have a $250,000 loan at 3.5% with 25 years left and a payment of around $1,250/month. A new loan at 7% for the same amount would cost ~$1,660/month—so the assumption made it possible for them to buy.

Quick Comparison of Assumable Loan Types

Loan Type	Who Can Assume	Occupancy Requirement	Qualify Needed?	Key Fees & Costs	Unique Points
FHA	Any credit-qualified owner-occupant	Must be primary residence	Yes	Up to $1,800 assumption fee; no new upfront MIP	Buyer continues paying FHA MI; loan must be current
VA	Any credit-qualified owner-occupant (veteran or not)	Must be primary residence	Yes	0.5% funding fee + ~$300 fee	No monthly MI; seller may need VA liability release
USDA	Any qualified buyer meeting income limits	Must be primary residence in USDA-eligible area	Yes + USDA approval	No new guarantee fee; ~$300–$500 fee	Buyer must meet income limits and loan must be current

Note on Conventional Loans

Most conventional loans are not assumable due to due-on-sale clauses. There are exceptions:

• Some older ARMs may allow assumptions.

• Certain portfolio or credit union loans.

• Very old loans (pre-1980s) without due-on-sale clauses.

In practice, FHA, VA, and USDA loans are the only realistic assumable options in 2025.

The “Assumption Gap” and How to Cover It

Buyers must pay the difference between the loan balance and the home’s sale price—this is the assumption gap.

Ways to cover the gap:

• Buyer’s cash: Ideal scenario—buyer pays gap with savings or gifts.

• Second mortgage: Can work if the buyer still qualifies, but often disallowed by the servicer.

• Seller carry (second mortgage): Seller finances the gap and receives installment payments.

• Price negotiation: Seller reduces price or offers concessions.

• Creative combination: Buyer uses a mix of savings, gifts, or HELOC from another property.

Assumption success often depends on the buyer’s ability to cover this gap. That’s why assumptions are sometimes easier for move-up or relocation buyers with equity from a previous home.

Creative Alternatives: “Subject-To” and Wrap Transactions

So far, we’ve focused on formal assumptions where the lender is involved and approves the transfer. Now let’s talk about the Wild West of mortgage takeovers: the “Subject-To” strategy and its cousin, the Wrap-Around Mortgage. These tools are common among real estate investors and can be valuable—if used wisely.

What is “Subject-To”?

In a Subject-To transaction, the buyer takes ownership of the property subject to the existing mortgage, meaning the seller’s loan stays in place. The buyer begins making the payments, but the lender is not notified and doesn’t approve the transfer. Here’s how it works:

• Title transfers to the buyer.

• The seller’s mortgage remains in their name.

• The buyer pays the mortgage on the seller’s behalf (often directly to the servicer).

This violates most mortgage due-on-sale clauses, so the lender can call the loan due if they find out—but many don’t, especially if payments stay current.

Why Would Someone Do This?

• No need to qualify with the lender – great for buyers with less-than-perfect credit or for investors.

• Speed – deals can close quickly without lender red tape.

• Access to a low interest rate – often better than today’s market rates.

• Minimal upfront cost – though a cash payment may still be needed for seller equity.

Risks of Subject-To:

• Due-on-sale clause – lender can demand payoff at any time.

• Seller remains liable – if the buyer defaults, the seller’s credit is at risk.

• No formal release for the seller – the original borrower is still on the hook.

• Insurance and legal complexities – tricky to insure properly and not all title companies will close these deals.

Wrap-Around Mortgage (Wrap)

A wrap combines Subject-To with seller financing. Here’s how it works:

• The seller sells the property and finances the sale themselves, wrapping their existing loan into a new loan to the buyer.

• The buyer signs a new promissory note (often at a higher rate) for the full purchase price.

• The seller uses part of the buyer’s payment to pay their original loan and pockets the rest.

Example: Seller owes $200,000 at 3%. Buyer agrees to buy for $300,000. The buyer gives the seller a note for $300,000 at 6%, pays $2,100/month, and the seller pays $1,020/month to the original lender and keeps the rest as profit.

Why use a wrap?

• The seller retains a lien—more protection than Subject-To.

• The buyer can’t qualify for a normal loan but has cash flow to cover the new note.

• The seller earns interest on their equity.

Execution Considerations for Subject-To and Wrap Deals

These strategies are powerful, but they’re also risky and complex. If you're navigating one of these deals—especially as a real estate agent or advisor—here are the critical things to consider:

1. Use a Knowledgeable Title Company and Attorney

Many title companies (especially in Colorado) are willing to close Wraps and some Subject-To deals, but you must find one familiar with the structure. Always use an attorney to draft custom notes, disclosures, and agreements. Key documents might include:

• Disclosures about the due-on-sale risk

• Limited power of attorney (to allow the buyer to talk to the lender)

• Payment servicing agreements

2. Involve a Third-Party Loan Servicing Company

This protects both buyer and seller. The buyer sends payments to the servicer, who forwards them to the original lender and keeps records. It ensures payments are

actually being made and provides proof for taxes and legal purposes.

3. Insurance Strategy Matters

Lenders are often alerted to ownership changes via insurance updates. Some investors keep the original policy and add themselves as additional insureds. Others use a new landlord or dwelling policy. Always coordinate with an experienced insurance agent.

4. Be Transparent—and Get It in Writing

Sellers must understand that they remain liable on the loan. Use state-specific forms (like the Colorado “Transfer Subject To Loan” disclosure) and get signatures on everything. Verbal agreements aren’t enough here.

Real-World Example: Subject-To Deal in Colorado Springs

In class, we covered the story of an investor who purchased a townhome Subject-To. The seller was three months behind on their mortgage and about to go into foreclosure. The investor agreed to:

• Bring the loan current

• Take title via deed into an LLC

• Continue making payments on the original mortgage

They created a trust account to manage reserves and did not notify the lender. The investor then rented the unit, cash-flowed it, and over a year later, the lender had not called the loan due. The seller avoided foreclosure, and the investor gained a performing asset.

Risks? Absolutely. But in this case, it worked out.

Wrap Example: Denver Deal with Built-In Exit Strategy

A seller had an FHA loan at 2.75% with a $250K balance and wanted to sell for $400K. The buyer had $50K in cash. They structured a wrap:

• Buyer paid $50K down

• Signed a $350K note at 6%, 30-year amortization, due in 5 years

• Seller continued paying their FHA loan at $1,020/month

• Buyer paid $2,100/month via a loan servicing company

Three years in, the buyer refinanced, paying off both the FHA loan and the seller’s equity. The seller earned interest income and got their cash out in the end.

Final Verdict on Subject-To and Wraps

These are powerful tools—especially in a market where high interest rates can block buyers from affording homes. But they must be handled with care:

• Disclose everything.

• Document everything.

• Protect your clients and yourself.

As I always tell agents and investors: Subject-To and Wrap deals can solve problems that traditional financing can’t—but they can also create problems if not done right. Respect the risks, get expert help, and never cut corners.

How to Market Assumable Loans and Educate Your Clients

Now that you understand how assumable loans, Subject-To, and Wraps work, let’s talk about how to turn that knowledge into client value and business growth.

1. Identify Assumable Opportunities

Start by researching listings with FHA, VA, or USDA financing. You can:

• Ask sellers or listing agents what type of loan they have.

• Use public records or your title company to verify the loan type.

• Look for listings that mention “assumable loan” in the agent remarks.

Pro tip: Many agents don’t know the assumability status of their listings. That’s a golden opportunity for you to step in as the expert.

2. Market the Rate Advantage

If a home has a 2.75% FHA or VA loan, that’s the hook! Use messaging like:

• “Assume a 2.75% rate—no need to refinance at 7%!”

• “Keep the seller’s low monthly payment—save thousands over the life of the loan.”

Use this in flyers, social posts, open house scripts, and emails.

3. Create Educational Content

Record Reels or YouTube shorts explaining how assumable loans work. Keep it simple, like:

• “Did you know you might be able to take over a seller’s mortgage—at their lower rate?”

• “Here’s how you can save big by assuming a USDA, FHA, or VA loan…”

Include a call to action: “DM me or visit MileHighTitleGuy.com for a free cheat sheet on assumable mortgages.”

4. Host a Workshop or Webinar

Invite buyers, agents, or investors to a short in-person or virtual class covering:

• What assumable loans are

• How to qualify

• How to cover the equity gap

• Creative financing examples

• Legal and risk considerations

Add massive value by offering to run a free loan-type report on their listings or database.

5. Work With a Title Partner Who Understands It

These deals involve a lot of nuance—make sure your title partner (like me at Chicago Title) understands these strategies and can support your clients with due diligence and legal structuring resources.

Marketing Assumable Loan Opportunities (Attract Buyers & Find Deals)

Assumable loans have a unique value proposition, and marketing them effectively can make a huge difference. Whether you’re marketing a listing that has an assumable loan or you’re an agent/investor hunting for assumable deals, here are strategies and tips.

Marketing a Listing with an Assumable Mortgage

If you’re the listing agent (or seller) of a property that has an assumable FHA, VA, or USDA loan at a favorable rate, shout it from the rooftops! This is not your run-of-the-mill feature; in a high-rate environment, it’s gold.

Here’s how to leverage it:

• Include it in the MLS description and headlines. For example: “Assumable 2.75% FHA Loan for Qualified Buyer – Save Hundreds Monthly!” Many MLS systems have a field for financing remarks or even a checkbox for assumable. In REcolorado (Denver’s MLS) and Pikes Peak MLS (Colorado Springs), utilize whatever field is available. If none, use the public remarks. You want every agent and buyer reading about the home to notice that feature.

• Explain the benefit in simple terms. Don’t just say “assumable loan” because a lot of consumers might not understand. Say something like, “Buyer can take over seller’s $X loan at Y% interest (with lender approval). This could reduce your monthly payment by $___ compared to a new loan!” Make it concrete. For instance, “Assumable VA loan at 3.0% – that’s roughly a $1,500/month payment on $300k, versus ~$2,000 at today’s rates【30†】. Huge savings!” When buyers see that, it clicks.

• Create a comparison chart or flyer. I love making a simple table or graphic for open houses or online posts:

Buying This Home – Two Options:

- Assume Seller’s Loan @ 2.75%: Approx. $1,200/mo principal & interest

- New Loan @ 7%: Approx. $1,900/mo principal & interest

*Assumption requires qualification and cash to cover difference.*

• This kind of visual helps drive the point home. People might not otherwise realize how much a few percent in interest matters – seeing that ~$700 difference like in our earlier example is compelling. (Just ensure your numbers are accurate; maybe fine print “estimates for illustration”.)

• Leverage social media and video. Do a quick video tour where you, as the agent, say “One of the coolest things about this listing is the financing – it has an assumable loan at 2.5%. That means if you qualify, you can step into the seller’s mortgage. If you’re tired of 7% rates, this is your chance to snag a 2.5% rate!” Use relevant hashtags: #AssumableLoan, #LowInterestRate, #DenverRealEstate, etc. You might attract not just buyers but also other agents who have buyers.

• Targeted outreach. If the loan is a VA loan, consider marketing directly to military communities (e.g., post on base housing Facebook groups or bulletin boards: “Home for sale near Fort Carson – assume a VA loan at 2.75%!”). If it’s USDA, target local community boards in that rural area. FHA assumable – that’s broad, but maybe target first-time buyer seminars or networks.

• Feature it at showings. Leave a printout in the home that outlines how an assumption works in bullet points (I have a one-pager I share: “Assumable Loan FAQ for Buyers” – it answers: Which loans? How do you qualify? What about down payment? etc., in lay terms). Many buyers strolling through might not have a clue; this educates them on the spot and gets them interested. It can say something like “Ask your agent about assuming this loan – it could save you tens of thousands over the life of the loan!"

• Be prepared to educate other agents. I’ve had buyer’s agents call me (the listing agent) and say, “What’s this assumable thing you mentioned? My client noticed it.” You then have an opportunity to explain and basically sell them on it. Some agents might brush it off if they don’t understand it, so make it easy: “It’s actually simpler than it sounds. If your buyer has about $X for the down payment (gap) and decent credit, we can get them into the seller’s 3% loan. I have resources to help with the process – let’s discuss.” In my class, we practiced “assumption scripts” – how to talk about it succinctly. Highlight the win for their client: lower rate, possibly qualifying where they wouldn’t otherwise, etc.

  
  

Finding and Targeting Assumable Deals for Buyers/Investors

If you represent buyers (or you’re an investor yourself), you can turn assumable mortgages into a hunting strategy:

• Leverage your Title Rep (like me!). As a title professional at Chicago Title, one service I offer my agents is helping identify properties with FHA, VA, or USDA loans. We can often see from public record the loan type of the current deed of trust (FHA case numbers, VA riders, etc.). Suppose you have a buyer wanting to buy in a certain neighborhood but struggling with rates. I can pull data on recent sales in that area (say 2020-2022 sales) where the loan recorded was FHA or VA. Those homeowners likely have low-rate loans. You could then target them – perhaps send a letter: “I have qualified buyers interested in your neighborhood. If you have an FHA/VA loan around X%, we might be able to offer top dollar and even assume your loan. Contact me if you’re curious.” This is a bit advanced prospecting, but it could flush out off-market opportunities. I can also help run lists of properties with assumable loan indicators in the Front Range.

• Monitor listing remarks. Set up an MLS watch for keywords like “assumable,” “assumption,” “VA loan,” etc., within your areas. You’d be surprised – more agents are adding this info now. If something pops up, jump on it for your buyer.

• Educate your buyers. Many buyers (and agents) don’t even know asking about assumables is a thing. Train yourself to ask the listing agent or seller, “Do you know if the existing loan is FHA or VA, and if so, would the seller consider allowing an assumption?” Sometimes the listing agent hasn’t even thought of it until you ask. I had an agent in our class share that they asked this question on a listing and the listing agent said, “Hmm, it is a VA loan, but I assumed only vets could use it.” That opened a conversation, and eventually they did an assumption that otherwise wouldn’t have happened. Moral: ask the question on any home where you suspect a gov’t loan. It could be the difference between deal/no deal for your buyer.

  
  

• Networking and groups. Join local investor meetups or online groups where people discuss creative deals. Often, investors will share leads or wholesalers will know sellers open to subject-to. Being plugged in might get you first dibs on an assumable scenario. Also, let your sphere know: “I specialize in finding homes with assumable low-rate loans.” You might get referrals or someone saying “My cousin has a VA loan and is thinking of selling.”

  
  

• Target major sources of VA/FHA. For VA, target areas near bases (Colorado Springs – Fort Carson, Peterson AFB; Aurora – Buckley; etc.). For FHA, think starter-home heavy neighborhoods from a couple years back. Also, new construction communities sold in 2020 with FHA/VA – those homeowners might be moving soon (3-5 years in, time to move up) and they have assumable loans.

  
  

• Prepping your buyer financially: If you find a potential assumable deal, prepare your buyer for the gap. I can’t stress enough: verify early that they have or can get the needed funds. Maybe get a proof of funds for the cash portion, and if planning a second loan, talk to a lender about pre-approving that concurrently. It strengthens your offer if you can show the listing side, “We’ve got the money to cover the equity and we understand the process.”

  
  

• Highlight assumptions in your buyer’s offer. If you’re writing an offer on a listing that didn’t advertise an assumable loan, but you know there is one (say public records show an FHA loan), you can write in the offer: “Buyer proposes to assume Seller’s existing FHA loan approximately $X balance at Y% interest, subject to lender approval. Buyer will pay remaining balance of purchase price in cash/financing.” This can catch a seller’s attention. Maybe they never considered it, but if your offer is otherwise strong, they might be intrigued to try (especially if it means you’re offering full price or close, because the financing benefit to you is huge). Always good to have talked to the listing agent about it first though – don’t blindside them with jargon in a contract.

  
  

• Be creative and flexible. I had one investor client who actually did this: they couldn’t assume a certain FHA loan because they wanted to rent the house out (not allowed as non-occupant). So instead, they partnered with a relative who would live in the house for a year. The relative assumed the loan (qualified as owner-occupant), then after a year, moved out and transferred the property within the family. Not a typical scenario, but it shows thinking outside the box. Another example: If a buyer doesn’t quite qualify for the assumption, maybe get a co-signer involved who does (like parent co-signs assumption). The servicer might allow that if the co-signer will also take title.

One more note on marketing: Sellers vs. Buyers perspective:

In any marketing or negotiation, consider the other side’s incentive. A seller might allow an assumption if it benefits them, like selling faster or at a higher price. Some sellers might worry it’s extra hassle for them (it can be a bit more paperwork, and a bit of a wait).

So if you’re representing a buyer trying to convince a seller to do it, maybe sweeten the deal: offer a bit more purchase price if they allow assumption and wait the extra time. Or reassure them that you (and your team) will handle most of the heavy lifting on the process.

From the seller’s agent view, you market it as a bonus because it is one, but also vet buyers to make sure you pick one who can execute it.

Marketing assumable deals is partly about education – many people won’t know what it is or will have misconceptions (e.g., “I’m not a veteran so I can’t assume that VA loan” – which as we know is incorrect. So, your job in marketing is to inform and excite them about the possibility, and then guide them through.

I often say, “Assumable loans are a win-win-win: win for seller (easier sale), win for buyer (cheaper financing), win for agent (deal gets done), but only if people know about it.” So let’s be loud and proud in promoting these opportunities.

Ready to Take Action on Assumable Mortgages?

Let’s wrap things up with a few clear calls to action—no fluff, just opportunities.

1. Are you a real estate agent in Colorado? Let’s connect.If you’re ready to leverage assumable mortgages in your business, I’d love to help. Whether you’ve got a live deal or just want to be prepared for the next one, I’m here as a resource. Reach out to me—Jerad Larkin—by email at Info@MileHighTitleGuy.com or call me at 303-630-9430. We can brainstorm together, walk through a scenario, or I can send you one of my guides to help you get started.

2. Want hands-on learning? Join my next workshop.I regularly host in-person classes on assumable loans and creative financing—usually in Denver Tech Center, and occasionally Colorado Springs. These sessions are engaging, educational, and yes, even fun. We go through real case studies, role-play client conversations, and do live Q&A. If you'd like to attend, just reach out or subscribe on my website for upcoming class announcements.Bonus: If your brokerage is interested in a private training session, I can make that happen too.

3. Have a listing with an assumable loan? Let me help promote it.Assumable loans are marketing gold—especially in today’s rate environment. I can help you promote the listing through a range of channels, including social media, exclusive real estate Facebook groups, and our internal “mini-MLS” where we highlight assumable opportunities. Let’s get the right buyers in front of your property.

4. Buyer or investor looking for a low-rate loan? Let’s talk.If you're a buyer or investor who wants to get creative and find assumable properties, reach out. I can connect you with agents who specialize in this space or walk you through tools that help you locate assumable opportunities—sometimes even off-market ones that are circulating quietly in our network.

5. Explore the Mini-MLS / Assumable Marketplace.Want to browse active assumable deals in Colorado? I can give you access to our exclusive marketplace or send you a report of current listings with assumable loans. It’s a fantastic way to get familiar with the available inventory and spot opportunities before others do.

6. Download my free tools and guides.I’ve created resources like an Assumption Transaction Checklist (from contract to close) and a Creative Financing Glossary to help you navigate these deals. Want them? Just send me a message and I’ll email them your way. They’re perfect for agents and clients alike—and yes, you can share them. The goal is to empower more deals to get done.

7. Join the conversation on social media.I’m active on Facebook (look up Mile High Title Guy) and X/Twitter (@JeradLarkin), where I share tips, news updates, and insights as they happen. If something changes—like FHA assumption fees—you’ll probably see it posted there first. Let’s connect, keep each other informed, and grow a community around smart real estate strategy.

To wrap this up: Assumable mortgages are not just a fad or buzzword – they are a practical solution to a very real problem (high interest rates) in our current market.

They won’t make sense in every situation, but for those that do, they can be the difference between a deal and no deal, or between a mediocre outcome and a great one. As real estate professionals, it’s our duty to be problem solvers and advisors. By mastering assumable loans, you’re adding a powerful tool to your toolkit.

I’m passionate about this because I’ve seen how it helps people: homeowners who thought they were stuck get to move on, buyers afford homes they love, and agents close deals that might have otherwise died. Plus, let’s face it, it’s pretty cool to tell a buyer “I got you a 3% mortgage in 2025” – you become a bit of a hero.

Thank you for taking the time to read this extensive guide.

I hope it will be an evergreen resource you come back to. Save it, share it, bookmark those citations (I included them so you know I’m not making this stuff up – it’s all backed by facts and current as of 2025). The world of assumable loans might evolve (perhaps more lenders will start offering assumable features, who knows?), and when it does, I’ll be here keeping tabs.

In conclusion, I’m here to help you make the most of assumable mortgages in Colorado real estate. Don’t hesitate to reach out for any reason – even if you just want to brainstorm a “what-if” scenario. Let’s collaborate and ensure that you and your clients reap the benefits of these opportunities. Together, we can turn those “locked-in” low rates into keys that open new doors (quite literally!).

Call or email me today, and let’s get started on transforming the way you do business in this high-interest-rate world. Who knows – your next deal might just be an assumption away from happening.

– Jerad Larkin (your ally in creative real estate solutions)

Disclaimer

The information provided in this blog post is for general informational and educational purposes only and is not intended to serve as legal, financial, lending, or real estate advice. While every effort has been made to ensure the accuracy of the content at the time of publication, laws, lending guidelines, and agency policies (such as those from the VA, FHA, USDA, and other government or private entities) are subject to change and may vary depending on individual circumstances or lender interpretations.

This article reflects the personal views and interpretations of the author and is based on public information and a class taught by Mike Roberts of UME Home Loans. The author, Jerad Larkin, is not a licensed mortgage lender, financial advisor, or attorney. Nothing in this blog post should be construed as establishing a client relationship or as a substitute for professional consultation with qualified experts in mortgage lending, real estate law, or financial planning.

Readers are strongly encouraged to independently verify all assumptions, guidelines, and strategies mentioned herein by consulting directly with qualified professionals including—but not limited to—licensed mortgage lenders, real estate attorneys, financial advisors, and title companies before making any decisions or entering into any real estate transactions.

Neither Jerad Larkin, MileHighTitleGuy.com, Chicago Title, nor any associated entities make any representations or warranties regarding the completeness, reliability, or applicability of the information contained in this blog, and expressly disclaim any liability for any loss or damages, whether direct or indirect, arising from reliance on this information.

Use of this website or its content does not create any form of legal, fiduciary, or professional relationship. By reading this blog, you agree to hold the author and all affiliated parties harmless from any legal claims or actions related to your use or interpretation of the material presented.