The primary obstacle is the “due-on-sale” clause allowing lenders to demand full repayment when ownership transfers.
Freely Assumable Loans
Loans without due-on-sale clauses are freely assumable, including many older VA and FHA loans.
Residential Exceptions
- Transfers to relatives following borrower's death
- Transfers to ex-spouses in divorce settlements
- Transfers to spouses or children
- Transfers into estate planning trusts
- Placement of secondary mortgages
Recommendation
Obtain any lender approval in writing.