In commercial real estate, an assumable loan is a loan that can be taken over by a buyer when the owner of the property sells. This can be very important, as it can help an owner/investor avoid significant prepayment penalties if they need to pay off the loan in order to sell the property. In most cases, if a loan is assumable, the new borrower/owner will still have to be approved by the lender. The lender needs to ensure the borrower has the financial means to repay the loan, and that they aren't going to be a serious financial risk. For some kinds of loans, such as HUD multifamily loans, having a new buyer assume a loan requires a small fee of between 0.05% and 1% of the original loan amount. In many situations, CMBS loans are also assumable for a small fee.