How to Assume an FHA or VA Loan in Fort Worth, TX

How to Assume an FHA or VA Loan in Fort Worth, TX

Unlock 2% Interest Rates in a 6% Market

🏡 What Is an Assumable Mortgage?

An assumable mortgage allows a homebuyer to take over the seller’s existing loan—often with a significantly lower interest rate than current market levels. In 2025, that could mean assuming a loan with 2%–3% interest, compared to 6%+ on new loans.

While most conventional loans aren’t assumable, FHA and VA loans are—with lender approval and borrower qualification.

✅ Key Benefits of an Assumable Loan

• Lower monthly payments with below-market interest rates
• Avoid refinancing or new loan origination
• Reduced closing costs and lender fees
• Potentially quicker closing process

Click Here to request a guide to buying a home with an assumable loan.

🔍 FHA Assumable Loans – Step-by-Step

Who Can Assume an FHA Loan?

Anyone who meets basic income, credit, and debt-to-income standards can assume an FHA loan—not limited to first-time buyers.

FHA Assumption Process

1. Find a Seller with an FHA Loan
   The Drees Team has resources to assist you in locating these homes.
2. Apply with the Current Lender
   Submit financial documents for review (credit report, W-2s, tax returns, etc.).
3. Loan Servicer Review & Approval
   The lender must approve you as the new borrower.
4. Sign HUD-92210.1 Assumption Agreement
   This makes the assumption official.
5. Close with Title Company
   Title is transferred, and your name replaces the seller on the loan.

🪖 VA Assumable Loans – Step-by-Step

Who Can Assume a VA Loan?

• Veterans and non-veterans can assume a VA loan.
• However, only veterans can restore the seller’s VA entitlement after assumption.

VA Assumption Process

1. Locate a VA Loan Property in Fort Worth
   The Drees Team has access to tools to locate these homes.
2. Apply with the Original Lender
   Provide credit/income documentation.
3. Submit VA Form 26-6381
   This authorizes the loan assumption process.
4. Pay 0.5% Assumption Fee
   This is lower than standard VA loan funding fees.
5. Finalize with a Title Company
   Title and mortgage rights are transferred to the buyer.

Click Here to request a guide to buying a home with an assumable loan

💸 What About the Down Payment or Equity Gap?

Let’s say the home price is $400,000 and the remaining mortgage balance is $300,000. You, the buyer, would need to:

• Bring $100,000 in cash, or
• Use a secondary loan or HELOC to cover the difference.

This "equity gap" is a key factor in any assumption deal. The Drees Team has lenders that can pre-qualify you for the secondary loan or HELOC.

🧠 FHA vs. VA Assumable Loans: Quick Comparison

Click Here to request a guide to buying a home with an assumable loan

🏘️ Fort Worth Real Estate Market: Why Assumable Loans Matter

Fort Worth, TX is booming, but higher interest rates are pricing some buyers out. Assumable loans present a powerful alternative for affordability.

Popular areas for FHA and VA loans in Fort Worth:

• Benbrook & Westover Hills – high military presence
• Tarrant County suburbs – newer homes with government-backed loans
• North Fort Worth – family-friendly with FHA popularity

🧾 Common Assumable Loan FAQs

Do I still need to qualify for the loan?

Yes. You must meet the lender's credit score, income, and DTI requirements.

Can I assume a loan if I’m not a veteran?

Yes, for both FHA and VA loans. But for VA loans, the seller’s entitlement stays partially tied up unless you’re also a veteran.

Does the loan stay in the sellers name or transfer to mine?

Once the buyer meets the qualifications to assume the name, the loan is transferred to the buyer's name.

How do I know if a loan is assumable?

The Drees Team can help you research which homes are assumable. Not all loans are assumable—even within FHA/VA guidelines—without lender approval.

Click Here to request a guide to buying a home with an assumable loan

🎯 Final thoughts: Should You Assume a Loan?

If you’re buying a home in the Fort Worth area in 2025 and want to avoid today’s sky-high interest rates, assuming an FHA or VA loan may be your smartest financial move. You could:

• Save tens of thousands of dollars over the life of your mortgage
• Close faster and with fewer fees
• Gain a foothold in a competitive market with low monthly payments

Looking for Assumable Loans in the Fort Worth, TX area?
Let’s connect you with properties offering 2%-3% interest rates today.
📱 Call us at (817) 691-0372 or email at 📧 kim@thedreesteam.com

Click Here to have The Drees Team contact you to start this process today