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How Much Can I Afford?

See what you can afford with an assumable mortgage — including the full cash-to-close breakdown so there are no surprises.

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How much you plan to put toward the purchase

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Total household income before taxes

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Car payments, student loans, credit cards — not including housing

Why is cash to close different for assumable mortgages?

With a traditional mortgage, your down payment is a percentage of the home price — typically 3-20%. With an assumable mortgage, you're taking over the seller's existing loan, which usually has a remaining balance that's less than the home's current value.

The difference between the home price and the remaining loan balance is called the equity gap — and that's what you need to cover with cash (or additional financing). This is often larger than a traditional down payment, but the tradeoff is a significantly lower interest rate.

Learn how assumable mortgages work →

Common Questions

Include funds you plan to put toward the purchase — savings, investments you plan to liquidate, gift funds from family, and retirement account withdrawals (if applicable). Don't include money you need for moving costs or emergencies.

The equity gap is the difference between the home's sale price and the remaining loan balance you're assuming. For example, if a home is listed at $500,000 and the remaining mortgage balance is $350,000, the equity gap is $150,000. This is what you need to cover with your cash (and/or additional financing).

Assumption closing costs typically run 2-3% of the home price and include the servicer's assumption processing fee ($500-$900), title insurance, escrow fees, recording fees, and prorated property taxes/insurance. These are generally lower than traditional mortgage closing costs.

You have options. You can negotiate seller financing, take out a second mortgage or home equity loan, or look at homes with smaller equity gaps (newer loans tend to have higher remaining balances and lower equity gaps). Talk to a lender about financing options for your specific situation.

Veterans may save on the VA funding fee (0.5% of loan balance), which is waived for disabled veterans and surviving spouses receiving DIC. You don't need to be a veteran to assume a VA loan, but the seller's VA entitlement stays tied to the loan until it's paid off if the buyer isn't a veteran.

Assumptions

Rates can be adjusted via “Adjust Assumptions” above the Calculate button. Defaults: 3.5% assumed rate, 7% market rate. Equity gap estimated at ~30% of home price, closing costs at ~2.5%. 43% back-end DTI limit, 30-year loan term. Actual numbers will vary by listing. This is for educational purposes only — not financial advice. Consult a qualified lender or financial advisor for personalized guidance.

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