Paying the equity gap on an assumable home
By Simon Dzienis, Colorado Realtor · Updated October 2026
The equity gap is the difference between the price and the seller's loan balance. On a $450,000 home with a $360,000 loan, the buyer pays the seller $90,000 at closing, plus closing costs.
Ways buyers cover it
- Savings or the sale of your current home.
- Gift funds from family, documented the way the servicer requires.
- A second mortgage behind the assumed loan. Some lenders offer these for assumptions; they usually need good credit and a meaningful down payment, and the rate is higher than the assumed loan. The blended payment can still beat a new loan at today's rates.
- Picking homes with a smaller gap: newer loans and lower prices mean less cash. We filter for this.
Run your numbers
Use the savings calculator, then ask us for homes that fit your cash.
Questions people ask
Can I finance the equity gap?
Sometimes. Some lenders offer second mortgages for assumptions, and VA guidance allows a second lien behind an assumed VA loan. Terms vary by lender and servicer.
Is a big equity gap a deal breaker?
Not always. A blended payment with a second mortgage can still be much lower than a new loan. We compare both for each home.