How to Buy a Home with a Lower Payment in 2025: Assumable FHA & VA Loans in the Willamette Valley

by Kyle Krenik

If you’ve been watching rates and thinking “yikes,” here’s some good news: many sellers still have ultra-low mortgages from 2020–2022—and certain loans can be assumed, meaning you can take over the seller’s existing rate and balance (with lender/servicer approval). In towns like Junction City, Harrisburg, Dallas, Stayton, and the Salem-to-Eugene corridor, that can be the difference between “we can’t” and “we can.”

What does “assumable” mean?

An assumption lets a qualified buyer step into the seller’s current mortgage—same interest rate, same remaining term, same unpaid balance—instead of opening a brand-new loan. Most FHA and VA mortgages are assumable with lender/servicer approval and a credit review. Some USDA loans are, too. Conventional loans are usually not assumable because of due-on-sale clauses. servicing-guide.fanniemae.com+4HUD Answers+4HUD+4

Why this matters in 2025

Assuming a 2.75%–3.5% loan beats starting fresh at today’s higher rates. Keeping the seller’s low rate can shave hundreds per month off your payment—money you can redirect into savings, upgrades, or a small shop in the backyard.

A quick, real-world style example

Assume seller’s $300,000 balance at 2.75% with 25 years left → about $1,384/mo (principal & interest).
New $400,000 loan at 6.75% for 30 years → about $2,594/mo.
If the home price is $400k and you assume $300k, you’ll cover the $100k equity gap (cash, seller carry, or a second). Even with a $100k second at ~7%/15-yr (~$899/mo), your total (~$2,283) is still ~$311/mo lower than taking a brand-new $400k loan at 6.75%.
(Estimates only; excludes taxes/insurance/MI—your lender will run exact numbers.)

Pros & cons

Pros

Keep a below-market rate and often lower payment.
Potentially lower closing costs vs. a brand-new mortgage.
Faster equity build if more of your payment goes to principal early.

Cons

You must qualify with the servicer/lender (credit, income, etc.).
You still need to cover the seller’s equity gap (cash or second).
Mortgage insurance/annual fees on the existing loan carry forward (e.g., FHA MIP, USDA annual fee; VA has no monthly MI).
VA nuance: if entitlement isn’t substituted, the seller’s VA benefit can remain tied up until the loan is paid off. Benefits

Costs & timelines (what to expect)

VA assumptions: typically include a 0.5% funding fee on the outstanding balance, plus standard closing charges; the servicer handles the credit review and release-of-liability steps. Veterans Affairs+1
FHA assumptions: servicers may charge a processing fee; HUD increased the maximum allowable fee in 2024 per industry reporting. insidemortgagefinance.com
USDA: some loans can be assumed with agency/servicer approval; terms vary by program (Direct vs. Guaranteed). Rural Development+1
Plan for more paperwork and a longer timeline than a standard sale—build that into your offer strategy.

How to find assumable opportunities here in the Valley

Watch listing remarks for “FHA/VA assumable”—or have me filter for loans originated in the low-rate years.
Ask early: we’ll verify the existing loan type, rate, servicer, and assumption eligibility before you fall in love.
Game-plan the equity gap: cash, negotiated price/credits, seller carry, or a compliant second from your lender.
Request the assumption packet from the servicer on Day 1 of mutual acceptance to keep timelines tight.

Buyer FAQ (fast answers)

Are FHA and VA loans really assumable?
Yes—FHA and VA allow assumptions with lender/servicer approval and buyer qualification. The key is getting the servicer to process and release liability correctly. HUD Answers+1

Do I have to be a Veteran to assume a VA loan?
No. Non-Veterans can assume. But if the buyer isn’t a Veteran using their own entitlement, the seller’s entitlement can remain tied up unless a substitution is approved. Benefits

Can down-payment assistance help with the equity gap?
Many Oregon DPA programs (like the OHCS Oregon Bond options) are designed to pair with new first mortgages, not assumptions—so compatibility is case-by-case. We’ll check what’s allowed; OHCS also offers separate DPA programs through local partners with varying limits and terms. Oregon+1

Are USDA loans assumable?
Some are, with agency/servicer approval—especially in eligible rural areas (many small towns in our region qualify). Terms vary; we’ll confirm on a case-by-case basis. Rural Development

Ready to hunt low-rate homes?

If you want me to pull a list of current assumable opportunities around Junction City, Harrisburg, Coburg, Dallas, Stayton, Salem, or Eugene—and run the payment math for your budget—shoot me a text or call and I’ll get you options same day.