Obtaining an Assumable Mortgage
Member since 2025 · 29 posts · 9 votes
Obtaining an Assumable Mortgage
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Glen OlsonPro Member
Member since 2022 · 9 posts · 17 votesIt's a frustrating and miserable process. The lenders don't really have an incentive to make things efficient because they get paid on new originations. In the last year I have assumed loans from Mr. Cooper, Rocket Mortgage, and Wells Fargo. Wells Fargo took the longest but was the best to work with. Almost 6 months total. Rocket was the fastest at 4.5 months, but they were awful to work with initially until I got into final underwriting and then they were great. Mr. Cooper was in the middle around 5 months and they were pretty bad at everything along the way. What I have found is that I end up having to educate their assumption team about the process because they assume they know what is necessary but are generally wrong. I am assuming VA loans. Lenders oftentimes think it has to be owner occupied which it doesn't, and no, you do not have to be a veteran to assume a VA loan. Lenders seem confused on those two points at times and it is difficult to get the proper clarification from the VA in a timely fashion.
7 Replies
- 4moGlen OlsonPro MemberMember since 2022 · 9 posts · 17 votes
It's a frustrating and miserable process. The lenders don't really have an incentive to make things efficient because they get paid on new originations. In the last year I have assumed loans from Mr. Cooper, Rocket Mortgage, and Wells Fargo. Wells Fargo took the longest but was the best to work with. Almost 6 months total. Rocket was the fastest at 4.5 months, but they were awful to work with initially until I got into final underwriting and then they were great. Mr. Cooper was in the middle around 5 months and they were pretty bad at everything along the way. What I have found is that I end up having to educate their assumption team about the process because they assume they know what is necessary but are generally wrong. I am assuming VA loans. Lenders oftentimes think it has to be owner occupied which it doesn't, and no, you do not have to be a veteran to assume a VA loan. Lenders seem confused on those two points at times and it is difficult to get the proper clarification from the VA in a timely fashion.
- Member since 2025 · 29 posts · 9 votes4mo
Quote from @Glen Olson:
It's a frustrating and miserable process. The lenders don't really have an incentive to make things efficient because they get paid on new originations. In the last year I have assumed loans from Mr. Cooper, Rocket Mortgage, and Wells Fargo. Wells Fargo took the longest but was the best to work with. Almost 6 months total. Rocket was the fastest at 4.5 months, but they were awful to work with initially until I got into final underwriting and then they were great. Mr. Cooper was in the middle around 5 months and they were pretty bad at everything along the way. What I have found is that I end up having to educate their assumption team about the process because they assume they know what is necessary but are generally wrong. I am assuming VA loans. Lenders oftentimes think it has to be owner occupied which it doesn't, and no, you do not have to be a veteran to assume a VA loan. Lenders seem confused on those two points at times and it is difficult to get the proper clarification from the VA in a timely fashion.
Appreciate the input Glen. Interesting that they do not have more knowledge on these VA loans, i'll take your thoughts into consideration. Appreciate the feedback.
- 3moJustin M. PillionPro MemberMember since 2025 · 8 posts · 3 votes
@Glen Olson Hi Glen. What exactly are the underwriting criteria that needs to be met? I'd like to consider this as an option, but unsure what capital and credit requirements are needed. Hard money is easy in this regard, but more expensive.
- 4moRyan ThomsonBusiness MemberReal Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
Glen covered the timeline reality well. A few things I'd add from doing these regularly:
Get a direct contact immediately. The general assumption inbox is slow. Ask to be assigned to a specific rep and get their direct email in the first call. Follow up weekly — they need to be reminded you exist.
Prepare your entire document package upfront. Tax returns, pay stubs, bank statements, ID. Because they'll ask for it all twice. Having it ready immediately keeps you from adding weeks to the timeline.
Confirm the occupancy and vet requirements in writing early. Glen's right that lenders often think VA assumptions require owner-occupancy or a veteran buyer — they don't. Get written confirmation from your rep, then reference that email if they walk it back later.
One thing worth verifying: make sure you're getting the seller's original note rate. Some lenders will initially quote a blended or "current" rate. You're entitled to whatever rate is on the promissory note.
Are you looking at VA, FHA, or conventional? The timeline and process differ significantly by loan type.
The Assumable Guy544 Reviews- Member since 2025 · 29 posts · 9 votes4mo
Quote from @Ryan Thomson:
Glen covered the timeline reality well. A few things I'd add from doing these regularly:
Get a direct contact immediately. The general assumption inbox is slow. Ask to be assigned to a specific rep and get their direct email in the first call. Follow up weekly — they need to be reminded you exist.
Prepare your entire document package upfront. Tax returns, pay stubs, bank statements, ID. Because they'll ask for it all twice. Having it ready immediately keeps you from adding weeks to the timeline.
Confirm the occupancy and vet requirements in writing early. Glen's right that lenders often think VA assumptions require owner-occupancy or a veteran buyer — they don't. Get written confirmation from your rep, then reference that email if they walk it back later.
One thing worth verifying: make sure you're getting the seller's original note rate. Some lenders will initially quote a blended or "current" rate. You're entitled to whatever rate is on the promissory note.
Are you looking at VA, FHA, or conventional? The timeline and process differ significantly by loan type.
Thank you for your feedback Ryan. Good point about asking for a specific rep, I hadn't thought of that. I wasn't under the impression conventional loans could be assumed. 1 quick follow up question: 1. Do you usually obtain your second source of financing (to cover the equity gap) from the same lender or do you shop for the best deal still?
- 4moGlen OlsonPro MemberMember since 2022 · 9 posts · 17 votes
I have never gotten a second source of funding so I can't help with that question. I have only made the equity gap payment from savings.
I agree with Ryan, try to get a specific contact person up front, but this has been elusive for me. Usually they will not assign a specific person until I have gotten to the underwriting stage. When applying for a traditional loan you basically start underwriting right when you apply. With an assumption, there is a lot of eligibility type paperwork as well as disclosures that have to be reviewed and approved before you are assigned an underwriter. This review and preparation process before getting approved to proceed takes up 80% or more of the total timeline. The most important thing when pursuing an assumption is preparing the seller for the slow timeline, and communicating effectively with them throughout the process. It's important that they blame the lender for delays, not you. Otherwise they often times get fed up and back out.
- Real Estate Agent · Member since 2026 · 15 posts · 0 votes1mo
Charlie — I wanted to add a different data point. I recently represented an assumable transaction in Colorado that closed in 35 days.
I definitely wouldn’t promise every assumption can move that quickly — the servicer matters a lot — but they don’t automatically have to be 4–6 month transactions either.
Having the balance, PITI, servicer, assumption package, buyer qualifications and equity funds lined up early can make a significant difference. Who you work with and how the file is managed matters.
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