Although they share some aspects, a mortgage assumption and subject to sale have some material differences.

• Similarities:
  • loan terms remain the same after sale
  • impact on veterans eligibility (except VA-to-VA with entitlement substitution)
  • the seller is entitled to their equity
  • the seller is no longer the owner of the home
• Differences:
  • in a loan assumption, the loan is transferred to the buyer while in a subject to, the loan remains in the sellers name