Frequently Asked Questions

Agent Tango is committed to making housing affordable again. When I found out how assumable mortgages worked I nearly pooped in the house (I'm a labrador). Our agents will help you with the myriad of issues that can arise from doing a mortgage assumption and getting a second loan. As always our site is free to use as a resource.

These low rates are possible because the language that is written into FHA, VA & USDA loans makes it so that someone else can take over the loan legally by having the loan transferred into their name.

A subject to purchase requires the original buyer to keep paying the mortgage because the new buyer doesn't want to have the mortgage in their name. This can create some very serious legal issues if something goes wrong. Whenever lawyers get involved everyone generally loses. An Assumable loan goes through the bank with the buyer having the mortgage legally in their name when the sale is complete.

An assumable is essentially an FHA, VA or USDA loan. These loans have language written into them that allows the folder of the loan to transfer the loan as it exists to someone else who gets approved for the loan.

The great thing about Agent Tango is that is Free. We handle all of the paperwork, work with the bank to get you qualified and take a commission from one of our approved buyers agents. One of our partners does charge a $500 fee at closing to handle some of the paperwork.

The amount will vary based on every assumable mortgage. A good rule of thumb is that any home that has a mortgage gap under $100,000 will need to have all cash to close. Loans with a mortgage gap over $100,000 may have the ability to have a bank finance a 2nd mortgage to get the sale of the home closed.

A mortgage gap or an assumption gap is the difference between what the house is selling for and how much is left on the original loan of the home. For example if the owner of a home with an FHA mortgage wanted $500,000 for their home and their mortgage had $300,000 left to pay off, the mortgage gap would be $200,000.