Mortgage Assumption Fee 2026: Cost to Take Over Loan | FHA, VA, USDA Fees
Marcus Thompson
Mortgage Assumption Specialist | 14+ Years
NMLS #723456 | Processed 2,500+ Assumptions
How much does it cost to assume a mortgage? Learn assumption fees ($500-1,500), FHA/VA/USDA costs, requirements, and if assuming a 3% loan is worth it vs getting new mortgage at 6.75%. Complete 2026 guide with cost breakdown.
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Find Assumable Mortgages →What is a Mortgage Assumption Fee?
📋 Assumption Fee Definition:
A mortgage assumption fee is a charge paid to the lender when you take over (assume) an existing mortgage from the seller. The fee covers the lender's administrative costs to transfer the loan from seller to buyer and verify your ability to repay.
Typical Assumption Fees:
• FHA: $500-900 (typically $900)
• VA: $300-500 (typically $300)
• USDA: $500-1,000
• Conventional: 1% of loan balance (rare)
• Total closing costs: $2,000-5,000 (vs $5K-10K new mortgage)
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Assumption Fee vs New Mortgage Costs
| Cost Item | Assumption | New Mortgage |
|---|---|---|
| Lender Fee | $300-900 | $1,000-2,000 |
| Appraisal | $400-600 | $400-600 |
| Title Insurance | $1,000-2,000 | $1,000-2,000 |
| Credit Report | $30-50 | $30-50 |
| Processing Fee | $0-300 | $500-1,000 |
| Underwriting | $0-500 | $500-1,000 |
| Points/Origination | $0 | $0-3,000 |
| TOTAL | $2,000-5,000 | $5,000-10,000 |
✅ Assumption Savings:
Assumption closing costs are 50-60% LOWER than new mortgage. Save $3,000-5,000 in closing costs PLUS keep low interest rate (save $300-600/month on payments)!
Want to calculate assumption savings? Use our calculator to compare assumption costs vs new mortgage.
💡 Calculate Assumption vs New Mortgage Savings
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Calculate My Assumption Savings →Assumption Fees by Loan Type
FHA Loan Assumption Fee: $500-900
Typical fee: $900 (most common). Some lenders charge $500-700.
FHA Assumption Details:
- • Assumption fee: $900 (typical)
- • Credit check required (620+ score recommended)
- • Income verification required
- • Lender must approve assumption
- • Seller released from liability after approval
- • Timeline: 30-60 days
VA Loan Assumption Fee: $300-500
Typical fee: $300 (lowest assumption fee). VA loans are easiest to assume.
VA Assumption Details:
- • Assumption fee: $300 (typical)
- • ANYONE can assume (not just veterans)
- • Credit check required
- • Income verification required
- • Seller's VA entitlement tied up until assumed
- • Funding fee: $0 if veteran, 0.5% if non-veteran
USDA Loan Assumption Fee: $500-1,000
Typical fee: $500-1,000. Must meet USDA income and location requirements.
USDA Assumption Details:
- • Assumption fee: $500-1,000
- • Must meet USDA income limits
- • Property must still be in eligible rural area
- • Credit and income verification required
- • USDA must approve assumption
Conventional Loan Assumption: Rare & Expensive
Fee: 1% of loan balance (if allowed). Most conventional loans are NOT assumable.
⚠️ Conventional Assumptions:
Most conventional loans have "due-on-sale" clause preventing assumption. Only loans originated before 1989 or special portfolio loans may be assumable. Fee is typically 1% of loan balance ($3,000-5,000). Rarely worth it.
Want to find assumable loans? Search homes with FHA, VA, or USDA mortgages that can be assumed.
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Search Assumable Mortgages →Is Assuming a Mortgage Worth It?
Scenario #1: Assume 3.25% vs New 6.75% - HUGE SAVINGS
Home: $450K purchase price
Assumable loan: $350K at 3.25%
Your down payment: $100K
Option 1: Assume Loan
• Assumption fee: $900
• Other closing costs: $3,000
• Total closing: $3,900
• Monthly payment: $1,523 (at 3.25%)
Option 2: New Mortgage
• Closing costs: $7,500
• Monthly payment: $2,269 (at 6.75%)
Savings by Assuming:
• Closing cost savings: $3,600
• Monthly payment savings: $746/month
• Annual savings: $8,952
• 30-year savings: $268,560!
✅ ABSOLUTELY WORTH IT - Massive savings!
Scenario #2: Assume 5.5% vs New 6.75% - Still Good
Home: $400K purchase price
Assumable loan: $320K at 5.5%
Your down payment: $80K
Assumption monthly payment: $1,817 (at 5.5%)
New mortgage payment: $2,076 (at 6.75%)
Monthly savings: $259
Annual savings: $3,108
30-year savings: $93,240
✅ WORTH IT - Good savings over time
Scenario #3: Assume 6.25% vs New 6.75% - Marginal
Assumable loan: $300K at 6.25%
New mortgage: $300K at 6.75%
Assumption payment: $1,847/month
New mortgage payment: $1,946/month
Monthly savings: $99
Annual savings: $1,188
Assumption closing costs: $3,500
Break-even: 35 months
⚠️ MARGINAL - Only worth it if staying 3+ years
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Calculate If Assumption Is Worth It →Frequently Asked Questions
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