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How it works! An assumable loan allows a home buyer to take over the seller’s existing mortgage, including the interest rate, loan balance, and repayment period, instead of securing a new loan. The buyer essentially steps into the seller’s shoes, continuing the existing loan terms. This can be beneficial when current interest rates are higher than the rate on the assumable loan. To qualify, you must meet the current FHA, VA, or USDA loan requirements depending on the type of loan you are assumin
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