USDA loans are assumable in two ways:
→ With new rates and terms. Most USDA loans are assumable in this way, which transfers responsibility for the mortgage debt to the buyer at the same time as it adjusts the terms of the loan. When re-amortizing the debt with new rates and terms, the monthly payments and interest costs can change.
→ With the same rates and terms. Available only in special circumstances, this type of assumption is usually reserved for family members who are exchanging ownership of a property. In these cases, the original mortgage’s rates and terms are preserved. Neither a review of the buyer’s creditworthiness nor an appraisal of the property is required.