Assumable mortgages in Florida: how to take over a seller's FHA or VA loan, what it costs, and how to cover the equity gap on a Broward or Aventura condo

October 31, 2026 · Zach Curtis, REALTOR®, Realty Hub

Short answer: FHA and VA loans can be assumed by a buyer who qualifies with the seller's loan servicer. You take over the seller's rate and remaining balance, but you still have to pay the seller for their equity, usually in cash.

Why buyers look for assumable loans

If the seller's loan has a lower rate than today's market, keeping that rate can lower your payment. For comparison, Freddie Mac's weekly average 30-year fixed rate was 7.24% for the week of October 29, 2026 (Freddie Mac PMMS, week of October 29, 2026); your rate depends on your credit, down payment and loan type. On an assumption, the rate, the remaining term and the payment schedule stay the same as on the seller's note.

FHA assumptions: HUD's rules

From HUD's FHA policy handbook (HUD Handbook 4000.1, Update 18, section II.A.8.n):

• For loans closed on or after December 15, 1989, you must intend to live in the home as your principal residence or as a HUD-approved secondary residence.
• The servicer's underwriter reviews your credit and income by hand.
• FHA doesn't require its usual minimum cash investment on an assumption. You can assume the full remaining balance. A HUD-approved secondary residence assumption is capped at 85% loan-to-value.
• The servicer can charge a processing fee of up to $1,800, plus certain other allowed costs.
• The seller or other interested parties can contribute toward your closing costs, within HUD's limits.
• The seller is released from liability when the servicer signs form HUD-92210.1, Approval of Purchaser and Release of Seller.

VA assumptions: you don't have to be a Veteran

From VA's assumption counseling form (VA Form 26-10291) and Circular 26-23-10 (VA Circular 26-23-10):

• Any qualified purchaser, including a non-Veteran, may assume a VA-guaranteed loan. You must meet VA's credit and income standards, and the loan must be current.
• Servicers with automatic authority must decide on a complete application within 45 calendar days. A turned-down application can be appealed to VA within 30 days.
• If the buyer isn't an eligible Veteran who substitutes their own entitlement, the seller's VA entitlement stays tied to the loan until it's paid off. Because of this, a Veteran seller may prefer a buyer who can substitute entitlement, so ask early.
• VA charges a 0.5% funding fee on assumptions (VA funding fee chart). On a $250,000 balance, that's $1,250.

The equity gap: the hardest part

You owe the seller the difference between the price and the loan balance you take over. Simple example:

That $100,000 usually comes from savings, a gift or the proceeds of a sale. If you want to borrow part of the gap with a second mortgage, ask the servicer whether it allows one and how it affects your qualifying. Compare the blended cost with a new loan at today's rates, using down payment and rate buydown options as the alternatives.

Assumption or a new loan?

Run both side by side before you make an offer. Ask the lender for a new-loan Loan Estimate, then compare it with the assumption: the seller's rate and remaining term, the equity you must bring, the processing or funding fee, and any second-mortgage payment. A low rate on a smaller balance can still cost more each month than expected once a second loan is added, and a short remaining term raises the payment. Also confirm with the servicer that the remaining balance and payment match the seller's latest statement.

Condo-specific checks

1. Ask for the seller's mortgage statement to confirm the loan type (FHA or VA), balance, rate and that the loan is current.
2. Contact the servicer early. Timelines vary, and the contract's closing date should leave room for the review.
3. Still review the association: your estoppel certificate, budget, reserves and any association approval requirement apply as with any purchase.
4. Get your own HO-6 policy and check whether the unit's flood zone requires flood insurance for the loan.
5. Ask how the seller's escrow account balance and prorations will be handled, and review them on your Closing Disclosure or settlement statement.

How to find one

Listings don't always say whether the loan can be assumed. Your agent can ask the listing agent which loan type the seller has. Browse Hallandale Beach, Hollywood, Dania Beach, West Park or Aventura, read VA loans for condos, and start at Ready to buy so I can check the loan type on listings you like.

Zach Curtis, Realtor, Realty Hub, license SL3664129. Equal Housing Opportunity. General information, not legal, tax, insurance or lending advice. Assumptions are approved by the loan servicer, FHA or VA, not by the agent.

Published October 31, 2026 by Zach Curtis, REALTOR®, Realty Hub, license SL3664129. General information for South Florida, not legal, tax, insurance or lending advice. Laws, programs and prices change; check the official sources above, and ask a Florida attorney, CPA, insurance agent or lender about your situation. Listing numbers are asking prices and rents from BeachesMLS on the date shown. Equal Housing Opportunity. Zach Curtis and Realty Hub follow federal, Florida and Broward County fair housing law. Every listing is open to everyone. We never steer anyone by race, color, religion, sex, national origin, disability, familial status, age, sexual orientation, gender identity, or any other protected class.