How to Transfer a Mortgage to a New Owner

Check the fine print of your mortgage to see if you can transfer it.

Check the fine print of your mortgage to see if you can transfer it.

When you’re selling your house, it may help to utilize every trick possible to make your home more marketable. Check the language contained in your mortgage document. If it has a specific clause that states that the mortgage is “assumable,” you have the option of trying to transfer it to a new owner. Assumable mortgages offer plentiful benefits to both buyers and sellers, most notably the simplification of the financing process.

Read your mortgage carefully to find the assumable clause or note its absence. If you aren’t comfortable with or sure of the language contained in the document, consult an attorney for assistance to find out whether you can transfer your mortgage.

Contact your lender if your mortgage is assumable. Speak with a representative about the process of transferring the mortgage.

Connect the person seeking to purchase your house with the lender. The new owner should contact the lender to begin the application process. The potential buyer will be required to submit an application and undergo a credit check, income and asset verification and employment history check.

Transfer the real estate deed to the new owner’s name(s). This transfers mortgage responsibility to the new owner as well. A title company working in conjunction with the lender will perform this process.

Close on the mortgage transfer. Both new and old owner (buyer and seller) must attend the closing to sign the paperwork. The seller should receive a payment of the equity built up in the home at the closing. Retain copies of all documents for your records.


  • VA and FHA loans are often assumable.
  • An assumable mortgage benefits the buyer if the buyer wishes to avoid a lengthy qualification process with a lender. If the mortgage has an interest rate lower than the current rate, the buyer will also benefit from interest savings.

About the Author

Kathryn Hatter is a veteran home-school educator, as well as an accomplished gardener, quilter, crocheter, cook, decorator and digital graphics creator. As a regular contributor to Natural News, many of Hatter's Internet publications focus on natural health and parenting. Hatter has also had publication on home improvement websites such as Redbeacon.

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