Homeownership is a dream for many, but in today’s market that dream can feel out of reach. Rising interest rates and increasing prices in Las Vegas have pushed both buyers and sellers to get creative. One strategy making a quiet comeback: assumable loans.
WHAT’S AN ASSUMABLE LOAN?
An assumable loan allows a homebuyer to take over the seller’s existing mortgage, including the interest rate and remaining balance. For example, if a seller locked in a 3 percent interest rate a few years ago, today’s buyer can step into that loan instead of taking out a new mortgage at 6 percent to 7 percent. That difference can save hundreds, sometimes thousands, per month. In a high-rate environment, it can be the difference between owning a home and sitting on the sidelines.
WHY SELLERS LOVE IT
Offering an assumable loan makes a property stand out. A home with a payment tied to a 3 percent mortgage is instantly more attractive than similar homes where buyers must accept today’s higher rates. In competitive situations, this structure can pull in more qualified interest and shorten time on market. Some sellers are even seeing multiple offers faster; sometimes, above asking, because the financing itself carries real value.
THE BUYER’S ANGLE
For buyers, assumable loans are a practical way to lower costs without waiting for rates to fall. First-time buyers are using them to bridge the gap between affordability and rising prices. Veterans with Veterans Affairs loans are especially well-positioned, since many VA loans are assumable by non-veterans. Too few buyers know this option exists, which means many miss out on a powerful affordability tool.
Here in Las Vegas, Berkshire Hathaway HomeServices Nevada Properties agent Jordan Metz has become a leading voice in this space. He has successfully completed more than 50 assumable loan transactions over the past few years, helping both buyers and sellers unlock opportunities that might otherwise have been out of reach.
THE FINE PRINT
Assumable loans are not a cure-all. Most conventional loans are not assumable, and buyers still need to qualify with the lender. There can also be a gap between the current loan balance and the total purchase price. That gap may require cash at closing or a second loan to cover the difference. Timelines can stretch as well, since the lender must review and approve the assumption.
Even with these hurdles, for buyers and sellers who can make the numbers work, assumable loans are one of the smartest ways to unlock affordability in today’s market.
LOOKING AHEAD
The Las Vegas housing market continues to evolve. The people who win are the ones who adapt. Assumable loans are a clear example of creative financing that helps both sides. If you are a seller, ask your agent whether your existing loan is assumable and highlight it in your marketing if it is. If you are a buyer, make “assumable loan” part of your search criteria and run the math on the payment savings.
Do not give up on the dream of owning a home. Get informed, get creative, and use every tool available to you.
Troy Reierson is CEO of Americana Holdings, a wholly owned subsidiary of HomeServices of America, Inc., which operates Berkshire Hathaway HomeServices Nevada, Arizona and California Properties. He is responsible for overseeing business operations for 32 offices and over 2,700 real estate sales executives across the three states.
