What is Loan Assumability?

Assumability and HUD 223(a)(7) Loans

Assumability is the ability to transfer an existing mortgage and all terms from the current borrower to a buyer. In many cases, this keeps the new buyer from needing to obtaining a new mortgage, though they are free to do so if they desire. While all HUD multifamily loans, including HUD 221(d)(4) loans, HUD 223(f) loans, HUD 232 loans, and HUD 223(a)(7) loans are fully assumable, the FHA requires prior approval along with a 0.05% fee of the original loan amount.


To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.