Assumption

You should note that, unlike FHA or VA loans which are often assumable, conventional mortgages are generally not assumable. This is due to the "due-on-sale" clause found in most conventional loan contracts. This clause requires the entire loan balance to be paid off in full if the property is sold or transferred. Consequently, a buyer usually cannot take over the seller's low-interest rate on a conventional loan; they must secure their own new financing.