Have a Low-Rate FHA or VA Loan? It Could Be Your Home's Best Selling Point

Have a Low-Rate FHA or VA Loan? It Could Be Your Home's Best Selling Point

Freddie Mac's survey put the average 30-year fixed rate at 7.32% on October 22, 2026. If you bought or refinanced a few years ago with an FHA or VA loan, your rate may be less than half of that. For the right buyer, that rate could be one of the most valuable features of your home.


FHA and VA loans are generally assumable, which means a qualified buyer can take over your existing loan, including its interest rate and remaining term, instead of starting a new mortgage at today's rates. Most conventional loans do not allow this.



What It Could Mean for a Buyer: The Payment Math


Consider a $350,000 home. The seller has an FHA loan taken out at 3.0% with about $230,000 left to pay and 25 years remaining.


  • New loan: The buyer puts 20% down and borrows $280,000 at 7.32%. Principal and interest come to about $1,923 a month.
  • Assume the seller's loan: The buyer takes over $230,000 at 3.0%. Principal and interest are about $1,091 a month, roughly $833 less. The catch is the buyer must cover the $120,000 difference between the price and the loan balance.
  • Assume plus a second loan: The buyer brings $70,000 and finances the remaining $50,000 with a second loan. At an assumed 8.5% on that second loan, the combined payment is about $1,475, still roughly $448 a month less than a new loan.



Why This Helps You as the Seller


  • Your home can stand out from the 6,530 homes for sale across Central Ohio in September.
  • A lower payment may expand the pool of buyers who can afford your home at your price.
  • You can market the monthly payment, which is how most buyers shop when rates are high.



The Fine Print to Know Before You Advertise It


  • The buyer must qualify. Your lender or loan servicer has to approve the assumption, including the buyer's credit and income.
  • It can take longer. Assumptions often take more time to process than a standard closing, so plan your timeline accordingly.
  • VA entitlement matters. If a non-veteran assumes your VA loan, part of your VA entitlement can remain tied to that loan, which could limit your ability to use a VA loan again. If the buyer is an eligible veteran who substitutes their own entitlement, that issue goes away.
  • Get a release of liability. Make sure the assumption formally releases you from responsibility for the loan.
  • The equity gap is the biggest hurdle. The more equity you have, the more cash or secondary financing the buyer needs.



Bottom Line



If you have an FHA or VA loan with a rate well below today's 7.32%, your mortgage may be worth hundreds of dollars a month to the right buyer. It is not a fit for every sale, especially with a large equity gap or a VA entitlement you want back, but it is worth checking before you list. 



Margaret Lipp | REMAX Premier Choice

Serving Upper Arlington, Dublin, Worthington, Clintonville, Hilliard, Powell, Grandview, and all Central Ohio communities



Inventory figure: Columbus REALTORS® Central Ohio Housing Report, September 2026. Mortgage rate data: Freddie Mac Primary Mortgage Market Survey, week of October 22, 2026. Payment examples show principal and interest only and are illustrative, not a loan quote; taxes, insurance, and mortgage insurance are additional. Consult a licensed lender for rates and terms. Scenario figures, including the second-loan rate, are hypothetical. Assumption eligibility and terms depend on the loan servicer and program; consult your servicer and a licensed lender.

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Margaret Lipp.

REALTOR® LIC#2014004838

margaretlipp312@gmail.com

614-537-2992

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