FHA loan assumption in Colorado
By Simon Dzienis, Colorado Realtor · Updated October 2026
FHA loans are the most common assumable loans in the Denver area. A buyer who qualifies takes over the seller's rate and remaining term.
What the buyer needs
- Credit and income approval from the seller's servicer.
- Plan to live in the home (FHA assumptions are for owner-occupants).
- Cash for the equity gap and closing costs.
Costs
- Servicer assumption fee: capped at $1,800 by HUD.
- Closing costs: title, recording, prepaids.
- The loan's FHA mortgage insurance continues as it is on the existing loan.
Timeline
HUD expects the servicer to complete the review within about 45 days of a complete file. In practice, plan 60–90 days from contract to closing.
Questions people ask
Can an investor assume an FHA loan?
Generally no. FHA assumptions are for buyers who will live in the home.
Does the mortgage insurance stay?
Yes. The existing loan's FHA mortgage insurance continues under its current terms.