HomeDSCR Glossary › Assumable Loan

Assumable Loan

A mortgage that allows a buyer to take over the seller's existing loan terms (rate, balance) at sale. Most DSCR loans are not assumable; FHA and VA loans typically are.

Why it matters on a DSCR loan

Assumability matters most when you're buying from a seller who locked a rate in a lower-rate environment — taking over that loan can be worth real money over the hold period. Since most DSCR loans aren't assumable, don't build an exit strategy around a future buyer assuming your note; plan on the buyer bringing their own financing or you offering seller terms. When a listing advertises an assumable loan, verify the loan type and the lender's assumption requirements before pricing it into your offer.

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Reviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).