Buyer & Seller Guide
FHA Loan Assumption in Tucson
How taking over a seller's FHA loan works: who can assume one, what it costs, the seller's equity and partial claims, and the homes around Tucson whose listings say their FHA loan can be assumed.
The short answer
FHA loans are assumable: HUD's handbook says plainly that "all FHA-insured Mortgages are assumable." For a loan closed on or after December 15, 1989, the buyer must live in the home and is fully underwritten by the servicer, by hand rather than through FHA's automated scorecard. The servicer can charge up to $1,800 for the work, plus third-party costs such as the credit report. The buyer pays the seller's equity at closing, and any FHA partial claim on the seller's loan must be paid off.
Rules as of October 22, 2026, from the sources at the foot of this page.
In the MLS now
Homes With an Assumable FHA Loan
15 listings in the MLS of Southern Arizona said on October 22, 2026 that the seller's FHA loan can be assumed. We find them in each listing's own description and financing terms. The listing agent and the loan servicer confirm whether a loan can be assumed, and the buyer must qualify with the servicer.
FHA loan named in the listing
3 more on last night's list (a home that has sold since is left out)
Assumable, loan type not stated
89 more listings say the loan can be assumed without naming the loan type. Ask the listing agent, or ask us, whether it is a VA, FHA or other loan.
83 more on last night's list (a home that has sold since is left out)
Listing data is provided by MLS of Southern Arizona (MLSSAZ) and refreshed throughout the day. Listing information last updated Oct 22, 2026, 12:04 PM MST.
Listing information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but is not guaranteed accurate by the MLS or MLS of Southern Arizona. Properties displayed may be listed or sold by various participants in the MLS.
How an FHA Loan Assumption Works
Find a home whose FHA loan can be assumed
The listing says so, or the seller agrees to it. The purchase contract should make the sale depend on the servicer approving the assumption, and say how the seller's equity will be paid.
Apply with the seller's loan servicer
The servicer underwrites the buyer to FHA's standards for a new loan, but by hand: an underwriter reviews the file instead of FHA's automated scorecard. Servicers may not put restrictions of their own on assumptions.
Show the home will be your residence
For a loan closed on or after December 15, 1989, the buyer must occupy the home as a principal residence, or as a HUD-approved second home. Investors can assume only older loans.
Clear any partial claim
An FHA partial claim on the seller's loan, such as one from COVID-era forbearance, becomes due at the assumption. The servicer gets an official payoff figure, and it is paid at closing.
Close and release the seller
The buyer pays the seller's equity and the closing costs. The servicer approves the buyer and releases the seller from liability on form HUD-92210.1, and reports it to HUD.
What an FHA Assumption Costs
| Item | Federal limit | Source |
|---|---|---|
| Processing fee | Up to $1,800 (it was $900 until May 2024); half is refunded if the buyer is approved but the assumption fails for reasons beyond their control | HUD 4000.1 II.A.8.n.vi; FHA INFO 2024-30 |
| Third-party costs | The actual cost of items such as the credit report and employment verifications | HUD 4000.1 II.A.8.n.vi |
| Existing partial claim | Paid off at the assumption, from the official payoff letter | HUD 4000.1 III.A.3.b.v |
| The seller's equity | The price less the loan balance. HUD sets no minimum investment from the buyer, so a seller asking little more than the balance needs little cash | HUD 4000.1 II.A.8.n.v |
| Seller help | The seller may pay toward the buyer's actual closing costs, within FHA's limits on seller contributions | HUD 4000.1 II.A.8.n.vi |
These are the most a servicer may charge, as of October 22, 2026. Ask the servicer for its own fees in writing.
Paying the Seller's Equity
The buyer takes over the loan balance, not the price. The difference, the seller's equity, is paid at closing. HUD sets no minimum investment on an assumption, so the cash a buyer needs depends on how much equity the seller has, not on a down-payment rule.
HUD's handbook has no second-loan rule written for assumptions, so ask the servicer early whether it will allow a second loan to cover part of the equity, and on what terms. The seller may also pay toward the buyer's actual closing costs, within FHA's limits on seller contributions. More in FHA Loan Assumption: Costs and the Equity Gap.
Mortgage Insurance and Partial Claims
The buyer takes over the loan as it stands, including its FHA mortgage insurance. Ask the servicer for the current premium, and when, if ever, it ends on that loan, before you sign a contract.
A partial claim is money HUD advanced to bring an FHA loan current, secured by a second lien. If the seller's loan has one, it becomes due at the assumption: the servicer gets an official payoff letter and it is paid at closing, normally from the seller's equity.
For Sellers With an FHA Loan
An assumable FHA loan is worth saying in the listing: buyers search for it. When the servicer approves the buyer, you are released from liability on form HUD-92210.1, and a default by the buyer after that may not be reported on your credit.
If your loan has a partial claim, ask the servicer for the payoff figure early, because it is paid at closing. And since the buyer must live in the home on any FHA loan closed since December 15, 1989, an assumption is a sale to an owner-occupant, not an investor.
VA and FHA Assumptions Side by Side
| Topic | VA loan | FHA loan |
|---|---|---|
| Who can assume | Any buyer who qualifies, veteran or not | A buyer who qualifies and will live in the home (loans closed since Dec 15, 1989) |
| Servicer's deadline | 45 days from a complete package | None in HUD's current handbook; ask the servicer |
| Processing fee cap | $300 plus credit report; up to $463 more in Arizona | $1,800 plus third-party costs |
| Government fee | VA funding fee of 0.5%, in cash, unless exempt | None for the assumption; the loan's mortgage insurance continues |
| Paying the seller's equity | Cash, or a second loan VA allows since 2024 | Cash, or a second loan if the servicer allows it |
| Seller's release | VA Form 26-6381; entitlement restored only with a veteran's substitution | Form HUD-92210.1 |
| Existing partial claim | A COVID-era VA partial claim is repaid at the transfer | An FHA partial claim is paid off at the assumption |
In Arizona
Arizona is a community-property state: both spouses sign to sell or put a lien on a home (A.R.S. § 25-214), so plan for both on the seller's side and, where it applies, the buyer's.
Where they are: of the 154 listings whose own description said on October 22, 2026 that the loan could be assumed, 74 had a Tucson mailing address, 23 were in Vail, 19 in Sahuarita and 18 in Marana.
Frequently Asked
FHA Loan Assumption Questions
Are all FHA loans assumable?+
Yes. HUD's handbook says "all FHA-insured Mortgages are assumable," and a servicer may not put restrictions of its own on them. What differs is who can assume: for loans closed on or after December 15, 1989 the buyer must qualify and live in the home.
What does a buyer need to assume an FHA loan?+
Credit and income that meet FHA's standards for a new loan, reviewed by an underwriter by hand; a Social Security number or EIN; and, for any loan closed on or after December 15, 1989, the intention to live in the home as a principal residence or a HUD-approved second home.
Can an investor assume an FHA loan?+
Only a loan closed before December 15, 1989, and then for up to 75% of the home's value. Newer FHA loans can be assumed only by a buyer who will live in the home.
What is the most a servicer can charge for an FHA assumption?+
$1,800, plus the actual cost of third-party items such as the credit report. HUD raised the cap from $900 in May 2024. If the buyer is approved but the assumption falls through for reasons beyond their control, half the fee is refunded.
Does the buyer need a down payment?+
HUD sets no minimum investment on an assumption. But the seller is usually owed their equity, the difference between the price and the loan balance, and that is paid at closing in cash or, where the servicer allows it, with a second loan.
Does FHA mortgage insurance carry over?+
The loan is assumed as it stands, with its mortgage insurance. Ask the servicer for the current premium and when, if ever, it ends on that loan before you sign a contract.
What happens to the seller's FHA partial claim?+
It becomes due at the assumption. The servicer gets an official payoff letter and the claim is paid off at closing, usually out of the seller's equity.
Is the seller released from the loan?+
Yes, when the servicer approves the buyer: the release is on form HUD-92210.1, Approval of Purchaser and Release of Seller. A default after that may not be reported on the former borrower's credit.
How long does an FHA assumption take?+
HUD's current handbook sets no deadline for the servicer's review, so ask the servicer for its timeline before you set contract dates. Plan for longer than a purchase with a new loan.
Is a conventional loan assumable?+
Usually not. Most conventional fixed-rate loans have a due-on-sale clause, which makes the balance due when the home is sold. FHA, VA and USDA loans are the ones built to be assumed.
How do I find Tucson homes with an assumable FHA loan?+
The list above is rebuilt every night from the MLS: listings whose own description says the seller's FHA loan can be assumed, newest first. We can also ask a seller whose listing doesn't mention it.
Keep Reading
- VA loan assumption in Tucson →
- FHA loan assumption: costs and the equity gap →
- Assumable homes around Tucson: what the MLS shows →
- Can a non-veteran assume a VA loan? →
Sources
- HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, Update 18 (August 12, 2026): section II.A.8.n (assumptions) and III.A.3.b (servicing assumptions)
- HUD, FHA INFO 2024-30 (May 20, 2024), raising the assumption fee cap
- Fannie Mae Servicing Guide D1-4.2-02, due-on-sale provisions
- A.R.S. § 25-214, management of community property
- Listings: MLS of Southern Arizona (MLSSAZ) on-market listings whose own description says the seller's loan can be assumed, or whose financing terms include “Assumption”, read every night. The loan type is the one the listing names; the listing agent and the servicer confirm it.
- This guide summarizes the federal rules as they read on October 22, 2026. It is general information, not lending or legal advice and not an offer of credit. Tucson Experts is a real estate team with eXp Realty, not a lender: the loan servicer decides every assumption, and its fees and timing can differ within the federal limits. Confirm the terms of a specific loan with its servicer.
Ask Us
Buying or Selling With an Assumable FHA Loan?
Tell us what you are looking for, or about the loan on the home you want to sell. We will send you listings that fit, ask sellers whose listings don't say, and walk you through the contract and the timeline. We are a real estate team, not a lender: the loan servicer approves every assumption.
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