Are Investment Property Blanket Loans Assumable?
Yes, our blanket mortgage loans are fully assumable for a 1% assumption fee. This means you can transfer the existing loan to a qualified buyer without paying a prepayment penalty, providing a clean exit strategy that most conventional residential lenders do not offer.
Get Your Custom Loan Quote
No application fees, no tax returns required. Most loans close in 2-4 weeks with competitive rates based on your portfolio.
Fully Assumable
Transfer your existing loan to a qualified buyer for just a 1% assumption fee.
No Prepayment Penalty
Assumption avoids triggering prepayment penalties on the existing loan.
Rate Advantage
In rising rate markets, your lower locked-in rate makes the portfolio more attractive to buyers.
LLC Transfer
The special purpose LLC and mortgage transfer together to the new sponsor.
Assumability gives you a significant advantage when selling -- especially in rising rate environments
How Does Loan Assumption Work?
The assumption process involves transferring both the special purpose LLC that holds the properties and the mortgage itself to a new sponsor (buyer). Here is how it works step by step:
- Form a special purpose LLC -- our loan structure requires properties to be held in a dedicated corporate entity, which is standard at closing
- Find a qualified buyer -- the incoming sponsor must meet our underwriting standards, including credit, background, and experience requirements
- Submit assumption application -- the buyer applies for approval as the new loan sponsor
- Pay the 1% assumption fee -- calculated as 1% of the outstanding loan balance at the time of assumption
- Transfer the entity and loan -- once approved, the LLC ownership and mortgage obligations transfer to the new sponsor
Why Is Assumability Valuable for Investors?
Assumability gives you a significant advantage when selling your portfolio, especially in rising interest rate environments. If your locked-in rate is lower than current market rates, a buyer can assume your existing loan rather than obtaining new financing at higher rates. This makes your portfolio more attractive to potential buyers and can command a higher sale price. Traditional residential investment loans typically include due-on-sale clauses that prevent assumption, making this feature unique to our commercial lending structure.
Loan Assumption Process
- Properties must be held in a special purpose LLC (standard at closing)
- Incoming buyer must meet underwriting standards for credit, background, and experience
- 1% assumption fee calculated on outstanding loan balance at time of transfer
- All original loan terms remain unchanged for the new sponsor
Build In Your Exit Strategy From Day One
Our assumable loan structure means you always have a penalty-free exit option. Apply to see your rate and terms.
Compare the assumability and prepayment features across our blanket and multifamily loan programs.