Some homes for sale come with an FHA or VA mortgage at 2–3% that a buyer can assume: same rate, same balance, same remaining years. Here's how it works and what it costs.
Get the free checklist ↓The seller bought in 2021 with an FHA loan at 3%. They still owe about $420,000 and are asking $560,000.
| Assume the 3% loan | New loan, 20% down | |
|---|---|---|
| Interest rate | 3.00% | ~7.25% |
| Loan amount | $420,000 | $448,000 |
| Cash you bring | $140,000 | $112,000 |
| Principal & interest | $1,986 | $3,056 |
| Mortgage insurance | ~$192 | $0 |
| Monthly total | $2,178 | $3,056 |
About $880 a month less, for $28,000 more cash up front. The catch is the gap: you cover the difference between the price and the seller's loan balance, usually in cash.
Listings rarely say a loan is assumable. Of 37 new Benicia and Vallejo listings in my alerts from Sep 25 to Oct 4, 2026, none mentioned it. You have to ask.
One nearby: my listing at 206 Maywood Dr in Vallejo has an FHA loan at 2.5% with about $460,000 owed. Assuming it still needs the servicer's approval.
Free PDF: which loans qualify, the example, the questions to ask the listing agent, and the costs and timing.
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Call or text (925) 307-8798For illustration only. Example assumes a 2021 FHA loan of about $471,000 at 3% (30 years) with about five years paid, FHA annual MIP of 0.55%, and a new 30-year fixed loan at ~7.25% (Freddie Mac average 7.28% on 10/1/2026); figures exclude taxes, homeowners insurance and HOA, which are the same either way. Assumptions require servicer approval; eligibility, fees and timelines vary by loan program and servicer. Not a commitment to lend or loan advice. Tye Moody is a real estate agent, not a lender; talk to a licensed loan officer before making an offer.
Tye Moody, REALTOR® · DRE #02439789 · Twin Oaks Real Estate, Inc. · Broker DRE #01845706 · Equal Housing Opportunity