Why It Matters
An assumable below-market loan can be part of the value story. A restrictive or expensive payoff can be a sale-planning issue.
Financing Term
Loan Assumption
Loan assumption explained for apartment owners reviewing existing debt and sale options.
By Don Favia · Updated July 3, 2026
Direct Answer
A loan assumption is a sale structure where the buyer takes over the seller's existing loan, if the loan documents and lender allow it. It can improve buyer interest when the debt is attractive, but lender approval and terms control the outcome.