Can you sell your house and retain a prior mortgage?

Alex Ferreras

LoanSafe Greeter
Most people that ask this question are typically looking into one of two scenarios. Either you are asking if you can keep your current mortgage in order to transfer it over to a new porperty, or you are wanting to know if the properties mortgage you are buying is assumable. These questions are asked quite often and we will briefly discuss these options.

First off, assumable mortgages are very rare to come across. However, if the property you are looking to purchase does have an assumable loan, the lender will most likely require you to qualify under the same conditions and credit requirements. Many years ago certain mortgage lenders allowed mortgages to be assumed without the borrower having to qualify, but that option today is no longer available. Today's lending requirements have become much more strict over the years and no longer is going to hand out a loan without you having to qualify for it first.

One crucial factor every borrower needs to realize is once you have obtained a home loan and signed a contract on specific terms, that loan is is only valid until that home has either been sold to someone else or refinanced. That is how lenders make their profits. Lenders make money money on producing new home loans and refinancing existing loans. If lending institutions allowed borrowers to transfer a single mortgage to various properties or allow all home loans to be assumable, banks would lose money.

Whether you are looking to transfer your loan to a new home or wondering if the other mortgage is assumable, remember both of these scenarios are highly unlikely (if not impossible) so you may want to look into other options.