Loan Assumption
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
A loan assumption is when a buyer takes over the seller's existing mortgage, keeping its rate and terms, instead of obtaining new financing. Most commercial loans allow assumption only with lender approval.
When current rates are higher than the existing loan's rate, an assumable loan can be a valuable part of the deal.
How It Works
The lender reviews the buyer's financial strength and experience much like a new loan, typically charges an assumption fee, and may require new guarantors. Without approval, a sale can trigger the loan's due-on-sale clause. CMBS loans often permit assumption subject to servicer approval; see CMBS.
Pricing the Benefit
A below-market rate can justify a higher price, but the buyer may need extra equity if the existing loan balance is lower than today's financing would allow, and the remaining term and any yield maintenance or lockout still apply.
A Hypothetical Example
A buyer assumes a seller's loan carrying a rate well below current market rates, pays the lender's assumption fee, and adds equity to cover the gap between the loan balance and the purchase price. Hypothetical scenario.
From the Desk
In a rising-rate market, the loan can be worth more than the building's paint job. Ask about assumability on every listing.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39 years in commercial real estate, first in Chicago, now in Florida, across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Loan Assumption Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years in commercial real estate, first in Chicago and now in Florida, with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is a loan assumption?
A buyer taking over the seller's existing mortgage and terms.
Does the lender have to approve?
For most commercial loans, yes.
What does it cost?
Usually an assumption fee plus legal and processing costs.
Why do buyers want it?
To keep a below-market interest rate.
What is a due-on-sale clause?
A provision letting the lender call the loan if the property is sold without approval.
Article Summary
A loan assumption lets a buyer take over an existing mortgage with lender approval, preserving its rate and terms.
Key Takeaways
- ✓Take over seller's loan.
- ✓Lender approval needed.
- ✓Assumption fee applies.
- ✓Valuable when rates rise.
- ✓May need more equity.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39 years in commercial real estate, first in Chicago and now in Florida, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 9, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: Linton Global Solutions is a Florida-licensed real estate brokerage, not a broker-dealer, investment adviser or lender, and does not offer or sell securities. CREDDS and REOMind.ai provide decision support only. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.