Assumption Fee Gives You OptionsAssumption fee or the ability to assume a loan should be included in any commercial loan that you are considering. It is a fee, paid by a borrower or lender, for the paperwork and processing of records necessary to approve and document a new borrower. In residential investing, most lenders will not allow new borrowers to take over an existing loan and can legally call the loan due if it is (also called taking the loan "Subject To"). But in commercial loans this is not true. Most loans can be taken over by a new borrower for a small fee, usually 2%. So why is this important to you? Because when you decide to sell your property, this option will give you a larger pool of potential buyers to choose from. When looking at commercial loans, make sure your loan has this option.
Return From Assumption Fee to Commercial Glossary
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