# Can You Assume the Mortgage After a Divorce in Tennessee? Canonical URL: https://valor.mortgage/assuming-mortgage-after-divorce/ Page title: Assuming a Mortgage After Divorce in TN | Valor Mortgage By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) Last updated October 27, 2026 Rules accurate as of October 2026 Quick answer Sometimes. FHA, VA and USDA loans can be assumed by the spouse who keeps the home, and the servicer can release the other spouse once it approves the assumption. Most conventional loans can’t be formally assumed. Federal law still lets a spouse keep the house after a divorce without the loan being called due. Keeping the loan is not the same as getting your ex off it. Unless the servicer releases the departing spouse, or the loan is refinanced or paid off, both of you stay liable for the debt. Rules on this page were verified on October 27, 2026 against HUD, VA, USDA, Fannie Mae and CFPB sources. Program terms are subject to agency, servicer and lender guidelines and may change. This page is general mortgage information, not legal advice; your divorce attorney decides how the home is handled in your agreement. At a glance: keeping the loan after divorce - **Assumable:** FHA, VA and USDA loans, with the servicer’s approval - **Due-on-sale:** a transfer to a spouse under a divorce decree can’t trigger it on a 1–4 unit home - **Your ex’s liability:** stays on the note until the servicer releases them or the loan is refinanced or paid off - **FHA:** no credit review if you stay on title, live there and have made the last six payments - **VA:** the veteran’s entitlement stays tied up unless another eligible veteran substitutes theirs - **Refinance instead:** when you need to pay out equity or the loan can’t be assumed ## Which mortgages can be assumed after a divorce? It depends on the loan type and on approval from your *servicer*, the company you send payments to. A mortgage broker like Valor can’t process an assumption; the servicer does. Here is how each loan type treats a spouse who keeps the home: | Loan type | Can the spouse who keeps the home take over the loan? | Can the departing spouse be released? | |---|---|---| | [FHA](https://valor.mortgage/fha-loans/) | Yes. Credit review can be skipped if you stay on title, live in the home and have made the last six payments | Yes, through HUD form 92210.1 after the servicer approves the assumption | | [VA](https://valor.mortgage/va-loans/) | Yes, if the loan is current and the assuming spouse is creditworthy and takes on full liability | Yes. The veteran’s entitlement is restored only if an eligible veteran substitutes theirs | | [USDA Guaranteed](https://valor.mortgage/usda-loan/) | Yes, on the existing rate and terms, or on new terms if you apply and qualify | Only through the servicer’s release; a transfer alone leaves the departing spouse liable | | [Conventional](https://valor.mortgage/conventional-loans/) | You can keep the home and keep paying the loan, but most conventional loans can’t be formally assumed | Usually only by refinancing or paying off the loan; ask your servicer about your specific note | Sources: HUD Handbook 4000.1 §II.A.8.n; VA Circular 26-23-10 and 38 U.S.C. §3714; 7 CFR §3555.256; 12 U.S.C. §1701j-3(d)(7). Program terms and eligibility are subject to HUD, VA, USDA, servicer and lender guidelines and may change. ## What are the exceptions and catches? - **Keeping the house doesn’t free your ex.** A divorce decree decides who keeps the home between the two of you. It doesn’t change the contract with the lender. Both names stay on the note until the servicer releases one of you or the loan is paid off. - **Late payments hit both credit reports.** While both of you are on the loan, a missed payment shows up for both borrowers, whatever the decree says. - **An assumption can’t pay out equity.** You take over the existing balance. If your agreement says you owe your ex part of the equity, you need cash or a [refinance](https://valor.mortgage/refinancing-after-divorce/) to pay it. - **The assuming spouse may need to qualify alone.** Outside FHA’s divorce exception, servicers review the assuming borrower’s income and credit much as a lender would. - **A quitclaim deed isn’t a release.** Signing the house over to your ex removes you from title, not from the loan. ## Can the lender call the loan due when your ex moves out? No, not because of the divorce transfer itself. Most mortgages have a *due-on-sale* clause that lets the lender demand payment in full if the home changes hands. The federal Garn-St Germain Act says a lender may not use that clause on a home of fewer than five units when the transfer results from a divorce decree, a legal separation agreement or a related property settlement, and the borrower’s spouse becomes an owner ([12 U.S.C. §1701j-3(d)(7)](https://www.law.cornell.edu/uscode/text/12/1701j-3)). That protection lets you keep the home and keep paying the existing loan, even a conventional loan that isn’t assumable. It says nothing about releasing your ex. The loan simply stays in place, with both of you still responsible for it. ## Does assuming the mortgage release your ex from the loan? Only when the servicer formally releases them. An assumption has two parts: the servicer approves the spouse who keeps the home as the borrower, and the servicer releases the spouse who leaves. Ask for the release in writing. On FHA loans, the servicer prepares [form HUD-92210.1, Approval of Purchaser and Release of Seller](https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf). HUD’s handbook notes that the servicer simply notifying HUD of the transfer does not release anyone. On USDA loans, a transfer with an assumption on the same terms leaves the original borrower personally liable unless they are released ([7 CFR §3555.256](https://www.law.cornell.edu/cfr/text/7/3555.256)). If the servicer won’t release your ex, a [refinance in your name alone](https://valor.mortgage/refinancing-after-divorce/) is the usual way to remove them. ## How does an FHA assumption work after a divorce? FHA loans can be assumed with the servicer’s approval, and HUD’s handbook gives divorce a specific exception. The servicer may process the assumption **without a credit review** when the transfer can’t trigger the due-on-sale clause, “such as a divorce in which the party remaining on title retains occupancy,” and the assuming borrower shows they have made the mortgage payments for at least six months before applying ([HUD Handbook 4000.1 §II.A.8.n](https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf)). If you don’t meet that exception, the servicer underwrites you as a new borrower: credit, income and debts. Either way, ask for the release of your ex on form HUD-92210.1. **Related FHA option:** if you’d rather refinance, an FHA streamline refinance can remove a borrower after a divorce or legal separation. The decree must award you the home and the payments, and you must show six months of payments. See [refinancing after divorce](https://valor.mortgage/refinancing-after-divorce/#fha-streamline). ## What happens to a VA loan after a divorce? The answer depends on who keeps the home. - **The veteran keeps it.** No assumption is needed to release the non-veteran spouse. VA says the servicer needs the divorce decree or legal separation agreement awarding the home to the veteran, plus a recorded deed such as a quitclaim ([VA Circular 26-23-10](https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-23-10.pdf)). - **The non-veteran spouse keeps it.** They can assume the loan if it is current and the servicer finds them creditworthy and able to take on full liability ([38 U.S.C. §3714](https://www.law.cornell.edu/uscode/text/38/3714)). VA charges a 0.5% assumption funding fee unless the assumer is exempt. - **The veteran’s entitlement.** If a non-veteran assumes, the veteran’s VA entitlement stays tied to that loan until it is paid in full. It is restored right away only if the person assuming is an eligible veteran who will live in the home and substitutes their own entitlement ([38 U.S.C. §3702(b)](https://www.law.cornell.edu/uscode/text/38/3702)). A veteran planning to buy again with a VA loan should know this before agreeing to an assumption. VA funding fees and assumption terms are subject to VA and servicer guidelines and may change. ## Can you assume a USDA loan after a divorce? Yes. USDA’s rule says a transfer to a spouse or ex-spouse resulting from a divorce decree, legal separation agreement or property settlement agreement does not trigger the due-on-sale clause, and the guarantee stays in place whether or not the ex-spouse assumes ([7 CFR §3555.256](https://www.law.cornell.edu/cfr/text/7/3555.256)). The spouse who keeps the home can assume on the existing note’s rate and terms. A past-due account can be re-amortized. They can also apply for new rates and terms if they are eligible, in which case the new rate can’t be higher than the original loan’s rate. Program terms and eligibility are subject to USDA Rural Development and lender guidelines and may change. ## What if the servicer won’t talk to you about the loan? If the home was transferred to you under a divorce decree or separation agreement and your ex was the only borrower, you may be a *successor in interest*. Federal servicing rules require servicers to communicate with potential successors, tell them which documents they need, and decide promptly whether to confirm them. Once confirmed, you are treated as a borrower for escrow, servicing and loss-mitigation purposes, and you receive the statements and notices ([Regulation X §1024.31](https://www.consumerfinance.gov/rules-policy/regulations/1024/31/) and [§1024.38](https://www.consumerfinance.gov/rules-policy/regulations/1024/38/)). Being confirmed doesn’t make you liable for the debt unless you assume it. The CFPB has documented homeowners having trouble with servicers after a divorce; its [December 2024 report](https://www.consumerfinance.gov/data-research/research-reports/homeowners-face-problems-with-mortgage-companies-after-divorce-or-death-of-a-loved-one/) explains what servicers are expected to do. You can file a complaint at [consumerfinance.gov/complaint](https://www.consumerfinance.gov/complaint/). ## What should you do before and after the divorce is final? **Before it’s final:** 1. **Keep the mortgage current.** Agree in writing on who pays it while the case is open. A late payment hurts both of you and can block a VA assumption, which requires a current loan. 2. **Find out your loan type** from your closing papers or your monthly statement, and call the servicer to ask whether the loan is assumable and what they require. 3. **Check whether you can qualify alone** before you agree to keep the house. A loan officer can review your income, support payments and debts on one income. 4. **Have your attorney spell out the home in the agreement:** who keeps it, who pays the loan until then, the deadline to assume or refinance, any equity owed, and what happens if the deadline is missed. **After it’s final:** 1. **Get a certified copy of the final decree** and the signed agreement. The servicer, VA and any lender will ask for them. 2. **Apply for the assumption and the release** with your servicer, and keep making payments while it is reviewed. 3. **Record the deed** that puts title in the right name. In Tennessee, deeds that adjust property rights between divorcing parties are not subject to the state recordation tax ([TN Department of Revenue manual](https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/march-2023/Realty-Transfer-Recordation-Tax.pdf)). 4. **Confirm the release in writing**, and check both credit reports a few months later to see that the loan is reported correctly. ## Should you assume the mortgage or refinance it? | | Assume the existing loan | Refinance in your name | |---|---|---| | Interest rate | Keeps the rate you already have | New rate based on today’s market and your file | | Pays your ex their equity | No | Yes, if the new loan amount allows it | | Removes your ex from the debt | Only with the servicer’s written release | Yes, the old loan is paid off | | Who handles it | Your current servicer | Any lender you choose, including through a broker | | Costs | Servicer assumption fee; VA charges a 0.5% funding fee unless exempt | Full closing costs, and often an appraisal | | Available on | FHA, VA, USDA; most conventional loans can’t be assumed | All loan types, subject to qualifying | Illustrative comparison only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. If your current rate is low and nobody needs to be paid out, an assumption is often worth asking about first. If your agreement requires an equity payout, your loan is conventional, or the servicer won’t release your ex, a [refinance after divorce](https://valor.mortgage/refinancing-after-divorce/) is usually the cleaner path. ## Assuming a mortgage after divorce: FAQ ### Does the divorce decree take my name off the mortgage? No. The decree decides between you and your ex who keeps the home and who pays. Your lender wasn’t part of the divorce, so both names stay on the loan until the servicer releases one of you, the loan is refinanced, or the home is sold. Late payments still show on both credit reports. ### Can I assume a conventional loan after a divorce? Usually not as a formal assumption, because most conventional loans aren’t assumable. Federal law does stop the lender from calling the loan due because a divorce decree transferred the home to you, so you can keep paying it. To remove your ex from the debt, you would generally refinance. ### Do I have to qualify to assume the loan? Usually, yes. VA and USDA servicers review the assuming borrower’s credit and ability to repay. FHA allows an assumption without credit review after a divorce if you stay on title, live in the home, and have made the mortgage payments for at least six months before applying. ### Can I assume the loan and still pay my ex their share of the equity? Not through the assumption, because it only transfers the existing balance. You would need savings or another source of cash, or you would refinance into a new, larger loan that pays off the old one and your ex’s share. Fannie Mae and FHA both have refinance rules for divorce buyouts. ### If my ex assumes my VA loan, can I use my VA benefit again? Your entitlement stays tied to that loan until it is paid off unless the person assuming it is an eligible veteran who substitutes their own entitlement. You may still have remaining entitlement for another VA loan, depending on the loan amount; a loan officer can check your Certificate of Eligibility. ## Where these rules come from | Rule | Source | As of | |---|---|---| | Divorce transfers can’t trigger due-on-sale | [12 U.S.C. §1701j-3(d)(7)](https://www.law.cornell.edu/uscode/text/12/1701j-3) (Garn-St Germain Act) | Retrieved Oct 27, 2026 | | FHA assumptions, divorce exception, form HUD-92210.1 | [HUD Handbook 4000.1 §II.A.8.n](https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf) | Handbook revised Aug 12, 2026 | | VA assumption approval | [38 U.S.C. §3714](https://www.law.cornell.edu/uscode/text/38/3714) | Retrieved Oct 27, 2026 | | VA spousal release, funding fee | [VA Circular 26-23-10](https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-23-10.pdf) | May 22, 2023, until rescinded | | VA substitution of entitlement | [38 U.S.C. §3702(b)](https://www.law.cornell.edu/uscode/text/38/3702) | Retrieved Oct 27, 2026 | | USDA transfers and assumptions | [7 CFR §3555.256](https://www.law.cornell.edu/cfr/text/7/3555.256) | Amended Feb 8, 2016 | | Successors in interest | [Regulation X §1024.31](https://www.consumerfinance.gov/rules-policy/regulations/1024/31/), [§1024.38](https://www.consumerfinance.gov/rules-policy/regulations/1024/38/) | Retrieved Oct 27, 2026 | | Tennessee recordation tax exemption | [TN Dept. of Revenue, Realty Transfer & Recordation Tax Manual](https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/march-2023/Realty-Transfer-Recordation-Tax.pdf) (T.C.A. §67-4-409(a)(3)(E)) | March 2023 manual | ## Related guides - [How refinancing after a divorce works](https://valor.mortgage/refinancing-after-divorce/), including equity buyouts and removing a borrower. - [FHA](https://valor.mortgage/fha-loans/), [VA](https://valor.mortgage/va-loans/), [USDA](https://valor.mortgage/usda-loan/) and [conventional](https://valor.mortgage/conventional-loans/) loan program pages. - [Refinancing with Valor Mortgage](https://valor.mortgage/refinance/) and the [VA IRRRL](https://valor.mortgage/va-irrrl/). - [How much home can you afford](https://valor.mortgage/how-much-home-can-you-buy/) on one income. - [Robertson County mortgage guide](https://valor.mortgage/mortgage-loans-robertson-county-tn/). - [About Christopher Armantrout](https://valor.mortgage/about-us/), the licensed originator who wrote this page. ## Not sure whether to assume or refinance? Talk to Valor Mortgage. Your servicer handles the assumption, but you don’t have to decide alone. Before you sign your agreement, Valor Mortgage can check whether you’d qualify on your own and compare keeping your current loan with refinancing it in your name, anywhere in Tennessee. [Call me at (615) 671-9178](tel:+16156719178). That’s the fastest way to get a straight answer on what you’d qualify for and whether you can keep the loan you have or need to refinance. If it’s after hours, [grab a time on my calendar](https://valor.mortgage/book-your-appointment/). Pick a slot that works and I’ll call you then. If your life is too chaotic for a phone call right now — I understand — [start an application](https://valor.mortgage/purchase/) and I’ll review it and reach out with a plan. About the author [Christopher Armantrout](https://valor.mortgage/about-us/) Owner & Senior Loan Officer, Valor Mortgage NMLS #1210804 Christopher is a licensed Mortgage Loan Originator in the State of Tennessee and has been originating home loans since 2015. He founded Valor Mortgage in Springfield in 2019 and works with veterans, first-time buyers, self-employed borrowers, and families across Robertson County and Middle Tennessee. [More about Christopher](https://valor.mortgage/about-us/) [Verify this license on NMLS](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) **Valor Mortgage, LLC** · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity 724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · [NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify. --- ## Contact Valor Mortgage - Christopher Armantrout, Senior Loan Officer, NMLS #1210804 - Phone: [(615) 671-9178](tel:+16156719178) - Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage) - Office: 724 S Main St, Springfield, TN 37172 - [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/home-application/) · [Contact page](https://valor.mortgage/contact-us/) Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity. All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.