Can You Assume Your Mortgage After Divorce? (Most People Get This Wrong)
by Karla Kyte | Aug 12, 2025 | Loan Assumption
One of the biggest myths I hear from divorcing homeowners is:
“My lender told me I can’t assume the mortgage, so I’ll have to refinance.”
The truth? In many divorce cases, you can assume the loan — even if it’s a Fannie Mae or Freddie Mac loan. It’s called a release of liability, and it works differently from the “assumption” most people think of when buying or selling a home.
Here’s the catch:
- Your ability to assume the loan depends on how your divorce settlement is written.
- Your income, credit, and debt all need to meet the investor’s guidelines.
- The right language in your separation agreement can make or break your approval.
Case in point:
A recent client came to me ready to refinance out of a 2.75% mortgage because her attorney told her assumption wasn’t an option. In one conversation, I identified that not only could she assume the loan — she could do it without increasing her payment or losing her low rate. That one clarification saved her thousands in interest over the life of the loan.
Why this matters:
If you’re going through a divorce and want to keep your home, don’t take “no” as the final answer without checking with a Certified Divorce Lending Professional. The right advice at the right time can mean the difference between staying in your home and starting over somewhere else.
Bottom line:
Your lender’s standard process isn’t built for divorce scenarios. Before you sign your settlement, get a mortgage strategy session — it’s often the difference between possible and impossible.
Meet Karla Kyte of My Divorce Mortgage Planning