Are FHA-insured mortgages assumable?

All FHA-insured Single Family Forward Mortgages are assumable. The Mortgagee must not impose, agree to, or enforce legal restrictions on conveyances or assumptions after closing except when:

  • specifically permitted by HUD regulations; or
  • the restriction had been specified in a junior lien granted to the Mortgagee after settlement.

The Mortgagee must review the mortgage documents to determine what restrictions have been placed on the Mortgage.

The Mortgagee must send the applicable Notice to Homeowner: Release of Personal Liability to:

  • all applicants for FHA-insured Mortgages, before settlement; and
  • sellers or buyers who request information on HUD’s creditworthiness review criteria or procedures for assumptions or releases from personal liability. 

Upon any inquiry by a seller regarding HUD’s assumption requirements or upon learning that an assumption has occurred, the Mortgagee must:

  • attempt to obtain the forwarding address of the selling Borrower;
  • advise the selling Borrower to update the mailing address as needed; and
  • advise the selling Borrower that any existing Property Assessed Clean Energy (PACE) obligation that will remain with the property must be fully disclosed to the buyer in accordance with applicable law (state and local) and made part of the sales contract.

The Notice to Homeowner: Release of Personal Liability form is located on the Single Family Mortgages Model Documents web page located at:  https://www.hud.gov/program_offices/housing/sfh/model_documents 

  For policy information see: 


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04380