Can I Assume a Mortgage in a Divorce?

Sometimes. If your existing loan is FHA, VA, or USDA — or a conventional loan that contains an assumption clause — one spouse may be able to assume the mortgage in a divorce and keep the current interest rate. This is especially valuable when today's rates are higher than your existing rate, because a refinance would reset you to the higher market rate. A mortgage assumption still requires the remaining borrower to qualify on their own income and to obtain a release of liability so the departing spouse is removed from the debt. Not every loan is assumable, and lenders handle the process differently, so the first step is confirming whether your specific loan qualifies. Joshua Donion, a Certified Divorce Lending Professional, can review your loan, confirm whether assumption is an option, and coordinate it with your attorney and settlement.