Can I Transfer My Mortgage to Another Property? (w/Examples) + FAQs

No — in most cases, you cannot transfer your mortgage from one property to another in the United States. American mortgage contracts tie the loan directly to a specific piece of real estate, and a clause buried in nearly every mortgage makes this transfer almost impossible without lender consequences. The due-on-sale clause, made federally enforceable by the Garn-St. Germain Depository Institutions Act of 1982 (12 U.S.C. § 1701j-3), gives your lender the right to demand full repayment the moment you sell or transfer the property securing the loan.

Here is the hard reality: over 51.5% of outstanding U.S. mortgages carry interest rates at or below 4%, according to a January 2026 Realtor.com analysis of FHFA data. Millions of homeowners want to keep those rates — but the system was not designed to let them.

Here is what you will learn in this article:

• 🏠 Why the due-on-sale clause blocks most mortgage transfers — and the exact federal law behind it
• 📋 The real alternatives that exist: assumable mortgages, subject-to transfers, and wraparound mortgages
• 💰 How FHA, VA, USDA, and conventional loans each handle transfers differently — with specific qualification requirements
• ⚠️ Common mistakes that trigger foreclosure, credit damage, or unexpected loan acceleration
• 🔑 What mortgage portability means, why the FHFA is exploring it, and whether it could ever work in the U.S.

Why You Cannot Simply Move Your Mortgage to a New Home

A mortgage is not a personal line of credit you carry around. It is a secured loan, meaning the property itself serves as collateral. When you signed your mortgage documents, the lender agreed to lend money against that specific property — its appraised value, its location, its condition, and its title.

The due-on-sale clause is the legal mechanism that prevents you from swapping out the collateral. Found in virtually every conventional mortgage contract, this clause states that if the borrower sells, transfers, or conveys any interest in the property, the lender can accelerate the loan and demand full repayment immediately. Congress made these clauses federally enforceable through the Garn-St. Germain Act in 1982, overriding state laws that had previously limited lender power.

If a lender discovers you transferred the property without consent, they can foreclose. In practice, most lenders monitor title changes through county records and are automatically notified when ownership shifts. The consequence is not theoretical — it is a real legal right your lender holds.

What the Garn-St. Germain Act Actually Says

The Garn-St. Germain Act does two things. First, it affirms that lenders can enforce due-on-sale clauses in mortgage contracts. Second, it carves out nine specific exceptions where lenders cannot enforce them. These exceptions apply only to residential properties with fewer than five dwelling units.

The most important exceptions include:

• A transfer caused by the death of a joint tenant or tenant by the entirety
• A transfer to a relative after the borrower’s death
• A transfer where a spouse or child becomes an owner of the property
• A transfer resulting from divorce, legal separation, or a property settlement agreement
• A transfer into an inter vivos (living) trust where the borrower remains a beneficiary and occupancy rights do not change
• The creation of a subordinate lien that does not affect occupancy
• A lease of three years or less without a purchase option
• The creation of a purchase money security interest for household appliances

These exceptions matter enormously in estate planning and family law. For example, if a parent dies and their child inherits and occupies the home, the lender cannot call the loan due. The child takes the property subject to the existing mortgage terms and keeps making payments. This applies even if the child has poor credit or would not qualify for a new mortgage on their own.

In a divorce scenario, if a court orders the home transferred to one spouse as part of a property settlement, the lender also cannot enforce the due-on-sale clause. The receiving spouse takes over the mortgage payments under the existing terms. However, the receiving spouse must still qualify with the lender to formally assume the loan and release the other spouse from liability.

However, notice what is not on this list: transferring the mortgage to a different property you want to buy. That is not a protected exception. If you try to move the mortgage to a new home, you are outside the protection of the Garn-St. Germain Act, and your lender has full authority to demand immediate repayment.

What Happens If the Due-on-Sale Clause Is Triggered

When a lender discovers an unauthorized transfer, they have several options. They can demand the full remaining loan balance within 30 days. They can begin foreclosure proceedings if payment is not made. They can also negotiate a resolution, such as requiring the new owner to qualify for the existing loan or refinance.

In practice, many lenders do not immediately act if payments are current. But relying on this passivity is dangerous. A lender is within their legal rights to enforce the clause at any time — and they are more likely to do so when interest rates have risen significantly since the original loan was made. A lender holding a 3% loan in a 6.5% market has strong financial motivation to call that loan due and force a new loan at the higher rate.

What Is Mortgage Portability — and Does It Exist in the U.S.?

Mortgage portability means taking your existing loan — same rate, same terms, same balance — and moving it from your current home to a new property. In Canada and the United Kingdom, this is a recognized feature that some lenders offer. In the United States, it essentially does not exist.

The reason is structural. American mortgages are built on long-term fixed-rate debt. The most common product is the 30-year fixed-rate mortgage, which locks in a single interest rate for three decades. If portability existed here, a homeowner who locked in a 2.65% rate in 2021 could carry that rate from property to property for the rest of their life. Lenders and investors in the mortgage-backed securities market would have little incentive to support that arrangement — it would reduce their revenue.

In Canada and the UK, mortgages work differently. Their “fixed” rates typically last only 3 to 5 years before the borrower must renew or renegotiate. These shorter terms make portability far less costly for lenders, and prepayment penalties further protect lender revenue. This is why portability thrives there but has no foothold here.

The FHFA’s Exploration of Portable Mortgages

In November 2025, FHFA Director Bill Pulte announced that the agency is “actively evaluating” portable mortgages. This came shortly after the administration’s 50-year mortgage proposal drew heavy criticism from both industry professionals and economists. Pulte oversees Fannie Mae and Freddie Mac, which back more than half of all U.S. mortgages.

No official program, timeline, or implementation roadmap has been released. Industry analysts describe the evaluation as exploratory, not imminent policy. Major obstacles remain: mortgage-backed securities investors would need to accept portable loans, underwriting standards would need reworking, and the secondary market would need to accommodate a product it has never priced.

If portability were introduced, it would likely come with conditions. Borrowers would need to re-qualify financially, the new property would need to meet appraisal requirements, and any shortfall between the existing loan balance and the new home’s price would require a separate loan at the current market rate. This arrangement is sometimes called a “blend and extend” structure.

For now, portable mortgages in the U.S. remain a concept under review — not a tool you can use today.

Real Alternatives: How Mortgages Can Be Transferred

While you cannot port your mortgage to a new property, there are legitimate ways to transfer mortgage obligations between people and, in limited cases, between properties. Each method comes with distinct rules, risks, and qualifying requirements.

Assumable Mortgages

An assumable mortgage lets a new buyer take over the seller’s existing loan — same interest rate, same remaining balance, same terms. The buyer steps into the seller’s shoes and continues making payments. This is the closest thing to a mortgage transfer that is widely available in the U.S.

Not all loans are assumable. Here is how each loan type handles assumptions:

Only about 25% of new mortgages are FHA, VA, or USDA loans, which means the vast majority of existing mortgages are not assumable. Finding an assumable mortgage requires targeting the right loan types through specialized listing platforms or working with a real estate agent who understands how to identify these loans in the market.

How the FHA Loan Assumption Process Works

FHA loans originated on or after December 15, 1989, require lender approval for assumption. The buyer must demonstrate creditworthiness, and the lender will conduct a full financial review including credit reports, income verification, and DTI calculation.

The FHA requires a minimum credit score of 580 for most assumptions, though borrowers with scores above 620 may qualify for more flexible DTI limits (up to 57% in certain cases). The DTI ratio — your total monthly debt payments divided by your gross monthly income — generally cannot exceed 43%, though compensating factors like strong savings or minimal credit blemishes can push that ceiling to 50%.

FHA loans originated before December 1, 1986, have different, more relaxed rules. These older loans may be assumable without a creditworthiness review. Loans originated between December 1, 1986, and December 14, 1989, fall into a gray area where rules vary based on the specific loan terms.

Example — Sarah assumes an FHA loan:
Sarah finds a home listed at $350,000 with an existing FHA mortgage balance of $280,000 at 3.25%. Current market rates are 6.5%. Sarah has a 640 credit score and a 38% DTI ratio. She qualifies for the assumption and needs to cover the $70,000 equity gap — either through savings or a second loan.

By assuming the loan instead of getting a new one at 6.5%, Sarah saves roughly $600 per month in interest. Over the remaining life of the loan, this amounts to tens of thousands of dollars.

How VA Loan Assumptions Work

VA loans are assumable, and the buyer does not need to be a veteran or active-duty service member. However, both the lender and the VA regional office must approve the assumption. The buyer must meet VA creditworthiness standards, which typically means a 620+ credit score and a DTI ratio at or below 41%.

There is a critical wrinkle for sellers: VA loan entitlement. When a veteran sells a home through assumption, their VA entitlement remains tied to that loan unless the buyer is also a VA-eligible borrower who substitutes their own entitlement. If the buyer is not VA-eligible, the seller’s entitlement stays locked until the assumed loan is paid off entirely.

If the buyer later defaults, and no entitlement substitution occurred, the original veteran could lose their entitlement until the VA’s loss is fully repaid. This is true even if the VA determines the default was not the veteran’s fault and the debt was waived.

The VA charges a funding fee of 0.5% of the remaining loan balance for assumptions. On a $300,000 balance, that is $1,500. Veterans can restore their entitlement through three paths: sale and payoff, qualified assumption with entitlement substitution, or repayment of any VA loss from a previous default.

Example — Marcus (non-veteran) assumes a VA loan:
Marcus wants to buy a home from a veteran named David. David has a VA loan with a $250,000 balance at 2.75%. Marcus has a 650 credit score and 35% DTI.

David should seriously consider whether allowing assumption without entitlement substitution is worth the risk. If Marcus defaults, David may not be able to use his VA benefit to purchase another home until the full loss is repaid.

How USDA Loan Assumptions Work

USDA loans are assumable, but they operate differently from FHA and VA loans. In most cases, the new buyer receives new rates and terms — meaning the interest rate may change to the current market rate. The buyer must meet USDA eligibility criteria including income limits, a credit score of 640 or higher, and a DTI ratio at or below 41%.

Same-rate-and-terms assumptions — where the buyer keeps the original interest rate — are limited. They are generally reserved for transfers between family members, such as when a parent transfers a USDA-financed home to a child. In these situations, the new owner is not reviewed for income eligibility, creditworthiness, or repayment ability.

The property must remain in a USDA-eligible rural area, and the buyer must intend to use it as a primary residence. USDA assumptions require both lender and USDA approval, and the assumption process typically takes 45 to 60 days.

Conventional ARM Exceptions

While conventional fixed-rate mortgages are not assumable, there is a narrow exception for certain adjustable-rate mortgages (ARMs). Fannie Mae may permit the assumption of first-lien ARM loans that have not been converted to a fixed-rate mortgage.

However, these assumptions are typically permitted only during the adjustable period — not during the initial fixed-rate period. This means if you have a 5/6 ARM, the loan may only be assumable after the first five years when the rate begins adjusting. Even then, specific ARM plans may restrict assumability, and the lender must disclose these restrictions to the borrower.

This exception is rarely used. Most homebuyers are unaware it exists, and many lenders are unfamiliar with or reluctant to process these assumptions.

Subject-To Transactions: A Creative but Risky Path

A subject-to transaction is when a buyer purchases a property while the existing mortgage stays in the seller’s name. The deed transfers to the buyer, but the loan does not. The buyer takes over making the monthly payments, but the seller remains legally responsible for the debt.

This is not a formal assumption — the lender is typically not informed or involved. The buyer gains ownership through a warranty deed or quitclaim deed, and the existing mortgage continues as if nothing changed.

Subject-to deals are popular among real estate investors, especially in high-rate environments. With over 55% of U.S. mortgages carrying rates below 4%, investors use subject-to strategies to gain control of properties with low-rate loans attached. According to a Redfin analysis, these low-rate loans represent a massive pool of below-market financing that investors are eager to access.

The risks are serious:

• Due-on-sale clause: If the lender discovers the ownership change, they can call the entire loan due immediately and begin foreclosure if the balance is not paid within 30 days.
• Seller credit risk: The mortgage remains on the seller’s credit report. If the buyer stops making payments, the seller’s credit is destroyed — and the seller could face foreclosure on a property they no longer own.
• Insurance complications: Maintaining proper insurance coverage when the title holder and the borrower are different people can create claim denials or lender red flags.
• Legal and ethical concerns: Some states have specific regulations around subject-to transactions. Improperly structured deals can lead to lawsuits, especially if sellers later claim they did not understand the agreement.

Some investors mitigate the due-on-sale risk by placing the property in a land trust, since the Garn-St. Germain Act protects transfers into trusts where the borrower remains a beneficiary. However, this protection is designed for estate planning — not for disguising an investment property transfer. Lenders who discover the true nature of the transaction can still act.

Example — Jake buys subject-to:
Jake, a real estate investor, buys a rental property from Lisa, who is behind on payments and facing foreclosure. Lisa’s mortgage balance is $180,000 at 3.5%. The home is worth $230,000. Jake pays Lisa $5,000, takes the deed, and begins making her mortgage payments.

Wraparound Mortgages

A wraparound mortgage is a variation of the subject-to strategy. The seller keeps their existing mortgage but creates a new, larger loan for the buyer that “wraps around” the original balance. The buyer makes payments to the seller, and the seller uses a portion of those payments to continue paying the original mortgage.

For example, if the seller owes $100,000 at 3.5% and sells the property for $150,000, the seller could create a wraparound note for $145,000 at 5.5%. The buyer pays the seller monthly at 5.5%, and the seller pays the original lender at 3.5%, pocketing the interest rate spread as profit.

Wraparound mortgages carry the same due-on-sale risks as subject-to deals, plus additional exposure: if the buyer defaults, the seller must still cover the original mortgage or face foreclosure. If the seller stops paying the original loan while collecting the buyer’s payments, the buyer could lose the property through no fault of their own.

These transactions are not DIY projects. They require careful legal structuring, including promissory notes, deeds of trust, and coordination with title companies. A real estate attorney experienced in creative financing is essential.

Assumption Costs, Timeline, and Process

The mortgage assumption process is not a quick handoff. It involves a formal application, lender review, and legal documentation that mirrors much of the traditional mortgage origination process.

Typical Costs

Assumption fees generally range from 0.5% to 1% of the loan balance. Some lenders charge flat fees between $500 and $1,500. Government-backed loans (FHA, VA, USDA) often have capped fees regulated by federal guidelines. VA assumptions include a mandatory 0.5% funding fee.

In addition to the assumption fee, the buyer must cover title search fees, closing costs, and potentially a second mortgage or bridge loan to cover the equity gap between the existing loan balance and the purchase price. While assumptions are cheaper than originating a new loan (no appraisal is typically required), the total transaction cost can still be significant — particularly if a second mortgage at market rates is needed.

Timeline

The average mortgage assumption takes 45 to 90 days to complete, though some lenders report timelines stretching to 120+ days. Assumptions after a borrower’s death may process faster, typically within 30 to 60 days. The process does not begin until the lender receives a complete application package with all supporting documentation.

Working with a mortgage assumption specialist or experienced real estate attorney can reduce the timeline to 30 to 60 days in some cases, especially when documentation is prepared thoroughly before submission.

Step-by-Step Process

1. Confirm assumability. Verify the loan type and review the mortgage documents for assumption language. FHA, VA, and USDA loans are generally assumable; conventional loans are not.
2. Contact the lender or servicer. Request an assumption application package. Be prepared for delays — many servicers are unfamiliar with assumption processing.
3. Submit full documentation. Provide credit reports, income statements, W-2s, tax returns, bank statements, and employment verification. This mirrors a standard mortgage application.
4. Lender underwrites the buyer. The lender evaluates creditworthiness, DTI ratio, and ability to pay. For VA loans, the VA regional office also conducts a review.
5. Negotiate the equity gap. Determine how the buyer will cover the difference between the loan balance and the purchase price. Options include a cash down payment, a second mortgage, or seller financing.
6. Sign the assumption agreement. Both parties sign legal documents formalizing the transfer of responsibility.
7. Closing. The buyer pays assumption fees, closing costs, and any agreed-upon equity payment. If the lender agrees, the seller is released from the loan obligation.

State-Level Nuances That Affect Mortgage Transfers

While the Garn-St. Germain Act is federal law, states add their own layers of complexity to mortgage transfers through different foreclosure procedures, transfer taxes, and closing requirements.

California uses deeds of trust rather than traditional mortgages, and the foreclosure process is typically non-judicial (no court involvement), which means a lender can move faster to enforce a due-on-sale violation. California also imposes transfer taxes at the county level, typically $1.10 per $1,000 of the sale price, which adds costs to any property transfer. Some cities like Los Angeles and San Francisco layer on additional transfer taxes.

Texas has unique regulations around cash-out refinancing and homestead protections. Texas law limits cash-out refinances to 80% of the home’s appraised value, which can restrict options for homeowners who want to refinance instead of assuming. The state also uses deeds of trust with a power-of-sale clause, and its homestead protections are among the strongest in the country.

New York charges both property transfer taxes and mortgage recording taxes. In New York City, the transfer tax ranges from 1% to 1.425% depending on the sale price, with an additional mortgage recording tax of approximately 1.8% to 2.05% on new mortgages. An assumption can avoid the mortgage recording tax since no new mortgage is created — a meaningful savings that can amount to thousands of dollars.

Florida is a judicial foreclosure state, meaning lenders must go to court to enforce a due-on-sale violation. This gives borrowers more time but also creates more legal expense. Florida also has documentary stamp taxes on property transfers and is a popular state for subject-to investing, though investors must comply with specific state regulations.

Community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) can complicate mortgage transfers between spouses. In these states, both spouses may have an ownership interest in the property regardless of whose name is on the deed, which affects how Garn-St. Germain exceptions apply during divorce proceedings.

Each state’s closing process also differs — some use escrow companies, others require real estate attorneys. These differences affect the mechanics, timeline, and cost of completing any mortgage transfer.

Transferring Property to a Trust or LLC

One of the most common reasons homeowners explore mortgage transfers has nothing to do with moving. Instead, they want to transfer their property into a legal entity — a trust or an LLC — for estate planning or liability protection.

Transfers to a Living Trust

The Garn-St. Germain Act specifically protects transfers into an inter vivos (living) trust where the borrower remains a beneficiary and the transfer does not affect occupancy rights. This means you can transfer your home into your revocable living trust without triggering the due-on-sale clause.

This is standard estate planning practice. Placing your home in a trust allows the property to avoid probate when you pass away, saving your heirs significant time and money. The mortgage continues with the same terms — nothing changes from the lender’s perspective.

However, the protection has limits. If the trust is structured in a way that changes occupancy rights, or if the borrower is no longer a beneficiary, the lender may argue the protection does not apply. Always work with an estate planning attorney to ensure the trust is set up correctly.

Transfers to an LLC

Transferring mortgaged property into an LLC is far riskier. The Garn-St. Germain Act does not protect transfers into LLCs or other business entities. Only trusts where the borrower remains a beneficiary receive protection.

Many real estate investors transfer rental properties into LLCs for liability protection. If the property has a mortgage, this transfer can trigger the due-on-sale clause. While many lenders do not immediately act — especially if the loan is performing — the risk remains. Some investors use a two-step approach: transfer the property to a trust first, then make the trust the sole member of an LLC. Whether this strategy holds up to lender scrutiny depends on the specific circumstances and the lender’s willingness to investigate.

Mistakes to Avoid

Transferring or attempting to transfer a mortgage involves legal and financial risks that catch many homeowners and investors off guard.

Transferring property to an LLC without understanding the consequences. Many landlords transfer rental properties into an LLC for liability protection. However, the Garn-St. Germain Act does not protect transfers into LLCs — only into trusts where the borrower remains a beneficiary. Transferring mortgaged property to an LLC can trigger the due-on-sale clause, and lenders have the right to call the entire loan due.

Assuming a VA loan without understanding entitlement implications. If a non-veteran assumes a VA loan, the original veteran’s entitlement remains tied to that loan. The veteran cannot use their VA benefit again until the assumed loan is fully paid off. If the assumer defaults, the veteran’s entitlement could be lost for years.

Ignoring the equity gap in an assumption. When you assume a mortgage, you take over the remaining balance — not the full home value. If the home is worth $400,000 and the loan balance is $250,000, you need $150,000 in cash or a second mortgage to close the deal. Many buyers underestimate this gap and find themselves unable to close.

Believing lenders will not enforce the due-on-sale clause. While some lenders do not immediately act on title changes — especially if payments continue on time — a lender is fully within their rights to enforce the clause at any time. Relying on lender inaction is a gamble, not a strategy.

Failing to get the seller released from liability. In an assumption, the seller is not automatically released from the mortgage. The lender must explicitly agree to release the seller. Without this release, the seller remains liable if the buyer defaults. This is especially dangerous in divorce situations where one spouse assumes the mortgage but the lender never formally releases the other.

Not consulting a real estate attorney. Mortgage transfers involve federal law, state law, lender contracts, and title considerations. Attempting a subject-to deal, wraparound mortgage, or even a standard assumption without legal counsel can result in foreclosure, lawsuits, or financial loss.

Do’s and Don’ts

Do’s

• Do verify the loan type before exploring assumption. Only FHA, VA, and USDA loans are consistently assumable. Conventional fixed-rate loans almost never are.
• Do get pre-approved for the assumption before making an offer. Contact the lender early to understand requirements and realistic timelines.
• Do account for the equity gap. Have a plan — whether savings, a second mortgage, or seller financing — to cover the difference between the loan balance and the purchase price.
• Do hire a real estate attorney. This is non-negotiable for subject-to deals, wraparound mortgages, or transfers involving family members.
• Do request a release of liability. If you are the seller in an assumption, insist on formal lender documentation releasing you from the loan.

Don’ts

• Don’t transfer property into an LLC if it has a mortgage. This is not protected under the Garn-St. Germain Act and can trigger the due-on-sale clause.
• Don’t attempt a subject-to deal without understanding the full risk. The lender can call the loan due at any time, and the seller’s credit is on the line.
• Don’t assume USDA loan terms stay the same. In most cases, the buyer receives new rates and terms — not the seller’s original ones.
• Don’t expect a fast closing. Assumptions take 45 to 120+ days, which is often longer than traditional purchases.
• Don’t ignore state-specific laws. Transfer taxes, foreclosure procedures, and closing requirements vary widely and affect your total cost and risk.

Pros and Cons of Mortgage Assumptions

Pros

• Lower interest rate. The primary benefit — assuming a 3% mortgage when current rates are 6.5% saves hundreds per month and tens of thousands over the loan’s life.
• Lower closing costs. Assumptions typically cost less than originating a new loan. No appraisal is usually required.
• Faster equity building. A lower rate means more of each payment goes toward principal rather than interest.
• Seller advantage. Offering an assumable mortgage can make a property far more attractive in a high-rate market, potentially commanding a higher sale price.
• No new loan origination. The buyer avoids origination fees, discount points, and other costs associated with a new mortgage.

Cons

• Large equity gap. Buyers often need significant cash or a second mortgage at current market rates to cover the difference between the loan balance and the home’s value.
• Long processing time. 45 to 120+ days is common, which can complicate purchase timelines and frustrate all parties.
• Limited loan types. Only FHA, VA, and USDA loans are reliably assumable — cutting out the majority of the market.
• Seller entitlement risk (VA loans). The selling veteran’s VA benefit stays tied to the assumed loan unless entitlement is substituted by another eligible veteran.
• Lender approval required. The buyer must fully qualify, and the lender can deny the assumption for any reason they would deny a new loan.

FAQs

Can I transfer my mortgage to another property I already own?
No. U.S. mortgages are tied to the specific property used as collateral. Moving the loan to a different property would violate the due-on-sale clause, and no lender currently permits this.

Can I transfer my mortgage to a family member?
Yes, in limited cases. The Garn-St. Germain Act protects transfers to spouses, children, and relatives after a borrower’s death without triggering the due-on-sale clause.

Are conventional mortgages assumable?
No, with rare exceptions. Conventional fixed-rate loans contain due-on-sale clauses. Certain Fannie Mae adjustable-rate mortgages may be assumable during the adjustable period only.

Do I need good credit to assume a mortgage?
Yes. FHA assumptions require a 580+ credit score, VA lenders prefer 620+, and USDA lenders generally require 640+. The lender conducts a full financial review.

Can a non-veteran assume a VA loan?
Yes. Non-veterans can assume VA loans with lender and VA approval. However, the selling veteran’s entitlement remains tied to the loan unless another eligible veteran substitutes theirs.

What happens if I buy a home subject-to and the lender finds out?
The lender can call the loan due immediately. If the full balance is not paid within 30 days, the lender can begin foreclosure proceedings against the property.

How long does a mortgage assumption take?
Typically 45 to 90 days, though complex situations can stretch to 120+ days. Incomplete documentation is the most common cause of delays.

Will portable mortgages become available in the United States?
Unknown. The FHFA is evaluating the concept, but no official program or timeline exists. Industry analysts view widespread portability as unlikely in the near term.

Can I assume a mortgage after a divorce?
Yes. The Garn-St. Germain Act protects property transfers between spouses during divorce. The assuming spouse must still qualify financially with the lender.

Is a subject-to transaction legal?
Yes, the transaction itself is legal. However, it may violate the mortgage contract terms, allowing the lender to accelerate the loan under the due-on-sale clause.

Can I transfer my home into a living trust without triggering the due-on-sale clause?
Yes, as long as you remain a beneficiary of the trust and occupancy rights do not change. This is a protected exception under federal law.

What is the biggest risk of a wraparound mortgage?
Dual default exposure. If the buyer stops paying, the seller must still cover the original mortgage. If the seller pockets payments without paying the original lender, the buyer loses the property.