Can you Transfer a Mortgage?

Transferring a mortgage can be tricky, sometimes impossible

"Can you transfer a mortgage? There may come a time when you want to stop making payments, and you're lucky enough to have somebody willing to take your place. It may be ideal to transfer the mortgage into their name. However, it can be difficult or impossible to transfer mortgages.

Assumable Mortgages

An "assumable" loan means you can transfer the mortgage to somebody else. However, there are some restrictions. Lenders want to make sure you transfer the mortgage to somebody who will continue to pay. That person needs to have decent credit and sufficient income.

In general, it is difficult to transfer a mortgage. Your best bet may be if you have an FHA loan or VA loan.

Mortgage Refinancing

Instead of transferring a mortgage to somebody else, you may be able to refinance the loan. You repay the old loan, and replace it with a brand new one. Again, someone has to qualify for the loan with acceptable credit and income levels.

"Unofficial" Transfers

It may be tempting to transfer a mortgage "unofficially". You can get creative, and you can also get in trouble. Lenders may forbid some of the strategies that come to mind. In addition, you are still on the hook - financially responsible for repaying the loan - unless you do things officially".

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