How to Buy a Home with a 3.99% Assumable Loan

Looking to buy a home in today’s high-rate market? What if you could lock in a 3.99% interest rate while everyone else is stuck at 7%?

Welcome to the power of assumable loans — one of the best-kept secrets in Utah real estate right now.

In this post, we’ll break down what an assumable loan is, how it works, who qualifies, and how you can take advantage of this rare opportunity to save thousands over the life of your loan.

🔍 What Is an Assumable Loan?

An assumable loan is a mortgage that a buyer can “take over” from the seller — including the interest rate, balance, and terms.

✅ Example: If the seller locked in a 3.99% rate in 2021 and still owes $420,000, you can apply to assume that exact mortgage.

🔑 Benefits of an Assumable Loan

• Lower Interest Rate: Save hundreds per month

• Lower Monthly Payment: Even if home prices are higher

• No New Appraisal Needed (in many cases)

• Less Stress, Faster Close: Often a smoother path than a new mortgage

⚠️ What’s the Catch?

• You must still qualify through the seller’s lender

• Not all loan types are assumable (FHA, VA, USDA usually are)

• If the seller has significant equity, you may need a second loan or cash to cover the gap

💡 How to Know If a Property Has an Assumable Loan

• Work with an agent (like us) who knows how to spot these opportunities

• Ask during the listing inquiry or home tour

• Look for listings with phrases like “FHA Assumable” or “VA Loan Eligible”

🇺🇸 VA Loans: You Don’t Need to Be a Veteran to Assume One

One of the biggest myths in real estate is that only veterans can assume a VA loan.

The truth? Anyone can — as long as they qualify with the VA lender.

Most agents don’t realize this or know how to handle the process. In fact, many buyers and sellers miss out on this powerful tool simply because of outdated information.

💬 “We recently listed a home with a VA loan at 3.99%. The buyer wasn’t a veteran, and we still got it closed in 30 days. Most agents say VA assumptions take forever, but the truth is they just don’t know how to manage them. We do.”

— Troy Moultrie, Associate Broker

If you’re looking to save big and move fast, a VA assumable loan — even as a civilian — might be your smartest move.

💬 Real-World Example

A buyer recently assumed a 3.99% FHA loan on a $420,000 townhome in Southern Utah while similar homes required a 7.25% new loan. Their monthly payment was over $650 lower — enough to qualify when they otherwise couldn’t.

🏡 Let’s Find You an Assumable Deal

At Treasured Properties, we actively search for homes with assumable loans and help you navigate the approval process.

📞 Schedule a free call or text us at 435-327-5545 to find out if you qualify.