Assumable 101
Can You Assume a Mortgage With Bad Credit?
By David Golovin · September 18, 2026 · 2 min read
Yes. Credit standards for assumptions are set by the agency backing the loan: HUD for FHA and the VA for VA loans. The loan servicer reviews your application against those standards.
FHA Assumption
580+
Servicer reviews credit, income, and DTI
VA Assumption
580+
VA sets no minimum score; lenders typically look for 580-620
Conventional
N/A
Generally not assumable
What the servicer checks
The servicer reviews your credit score, income, and debt-to-income ratio. You are not getting a new loan but the servicer still confirms you can make the payments.
Source: HUD Single Family Housing Policy Handbook 4000.1
The rate advantage stays
If you assume a 3% loan while market rates are near 7%, you keep that rate for the life of the loan. On a $300k balance, that gap saves an estimated $700 or more per month.
How to find these homes
Roots shows 17,000+ active assumable FHA and VA listings with the estimated rate and downpayment for each one.
FAQ
What credit score do you need to assume an FHA loan?
HUD sets the credit standards for FHA assumptions, and buyers are underwritten to FHA guidelines. Scores of 580 and up generally meet the bar. The servicer also reviews income and debt-to-income ratio.
Can a non-veteran assume a VA loan with bad credit?
Yes, non-veterans can assume VA loans. The VA sets the underwriting standards but no fixed minimum credit score, so lenders typically look for scores around 580 to 620.
Does assuming a mortgage help if I have bad credit?
It may expand your options. Assuming an existing FHA or VA loan can be more accessible than qualifying for a new loan, and you take over the seller rate instead of today market rate.