What Makes a Loan Assumable (or not)

[Jake Kucheck]

I know basically nothing about what makes a loan assumable or not.

I was told by someone who would have an interest in telling me a specific loan was not assumable that Fannie/Freddie loans are not assumable (as a blanket statement).

Is this true or is the guy blowing smoke?

[Bryan Hancock]

There is some excellent commentary on the lineage of the due-on-sale clause in JTR's article here:

Due-On-Sale

Assumable loans are rare...especially ones that don't involve the lender approving the "assumption." Allowing fully-assumable loans increases the duration of the money for the lender and thus their interest rate risk.