CRE loan assumption fees typically run 50 to 100 basis points of unpaid principal balance, plus lender legal and processing costs of $25,000 to 75,000. CMBS and agency assumptions require full credit, net-worth, and liquidity diligence on the assuming buyer, with timelines of 60 to 120 days.
When is assumption attractive?
When in-place loan terms are materially better than current market, most often a low fixed coupon set in 2020 to 2022. The buyer effectively inherits below-market debt, which can be worth several million dollars in present value over the remaining term and improve sale-price negotiation.
What can derail it?
Servicer or special-servicer review of the buyer's credit and operating experience. Required transfer of all reserves, escrows, and rate-cap obligations. Some loans permit only one assumption; some prohibit assumption entirely. Diligence early, before the property purchase contract is signed, to confirm assumability and timeline.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1