What is An Assumable Loan?

An assumable loan is a type of mortgage loan that can be ‘assumed’ from on person by another. Now, I know mama always told us what happens when we ‘assume’ but this is not that type of assuming. What this really means that when a buyer buys a house from a seller he not only gets the house but is also able to take over the seller’s mortgage under the same terms, interest rates etc. Most lmortgage loans these days are not assumable without lender permission, except for FHA and VA loans.