Which mortgage servicers allow loan assumptions, and how to contact them
You don't pick the servicer; the seller's loan already has one, and if the loan is FHA, VA or USDA that servicer must process a qualified assumption request. It's the servicer named on the seller's mortgage statement. Call the number on the statement and ask for the assumptions department; most large servicers have one, with its own application package.
The rules cap what they can charge (FHA $1,800, VA $300 plus the credit report) and, for VA loans, require a decision within 45 days of a complete application.
How to reach the assumptions department
- Get the servicer's name from the seller's latest mortgage statement. The servicer is often different from the lender that made the loan, and loans change servicers.
- Call the customer service number on the statement and ask for the assumptions (or "loan assumption") department. Ask for the application package, the fee, the required documents and the current processing time.
- Have the seller authorize you. The servicer won't discuss the loan with a buyer until the borrower gives permission, so the seller usually makes the first call or signs an authorization.
- Submit a complete package in one go. Incomplete files are the main reason assumptions stall.
What the servicer may charge
| Loan type | Processing fee cap | Other allowed charges | Decision deadline |
|---|---|---|---|
| FHA | $1,800 | Credit report and employment verification at cost; up to $45 for the release-of-liability form | None set by HUD |
| VA | $300 | Credit report at cost; 0.5% VA funding fee paid to the VA unless the buyer is exempt | 45 days from a complete application (servicers with automatic authority) |
| USDA | Set by USDA rules and the servicer; ask for the fee schedule | None published | |
Sources: HUD Handbook 4000.1 (May 2024 update), VA Circular 26-23-10 Change 1 and VA Circular 26-23-27. Fees above these caps can't be charged to the buyer. For FHA loans, if the buyer's credit is approved but the assumption falls through for reasons outside the buyer's control, the servicer must refund half the processing fee.
Large servicers of FHA and VA loans
Most government-backed loans are serviced by a few dozen companies. The ones you'll run into most often include Mr. Cooper, Rocket Mortgage, PennyMac, Freedom Mortgage, Lakeview / LoanCare, NewRez / Shellpoint, Carrington, Wells Fargo, Chase, U.S. Bank, Flagstar, Navy Federal, USAA and Veterans United. All of them process assumptions on the FHA and VA loans they service; what differs is how fast and how organized their assumptions team is. Ask early, and build the servicer's quoted time into the contract.
Questions to ask the servicer
- What is your current processing time for an assumption, from a complete package to approval?
- What are your fees, and do they match the FHA or VA caps?
- Which documents do you need from the buyer and the seller?
- Will the approval include a release of liability for the seller?
- Do you allow secondary financing for the equity gap, and does it need your approval?
If the servicer stalls
For VA loans, cite Circular 26-23-27 and the 45-day deadline, and escalate within the servicer. If that fails, the VA's regional loan center can intervene. For FHA loans there is no deadline, so follow up weekly and keep a written record. A transaction manager who deals with these departments every week (that is what AssumptionHub does for buyers and sellers) usually gets faster answers than a first-time caller.
Frequently asked questions
Can a servicer refuse to process a loan assumption?
Not for a qualified buyer on an FHA, VA or USDA loan. The servicer must review the request under the program's rules; it can deny a buyer who doesn't qualify.
How long does the servicer have to approve a VA loan assumption?
45 days from receiving a complete application, for servicers with automatic authority, under VA Circular 26-23-27.
How much can a servicer charge for an assumption?
Up to $1,800 on an FHA loan and $300 on a VA loan, plus actual third-party costs such as the credit report. On VA loans the buyer also pays the 0.5% VA funding fee unless exempt.
Who do I contact to assume a mortgage?
The seller's loan servicer, named on their mortgage statement. Ask for the assumptions department.
Let us deal with the servicer
AssumptionHub prepares the package, follows up with the assumptions department and keeps your closing on schedule.
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