CMBS assumption requires special servicer (or master servicer for performing loans) credit and net-worth diligence on the assuming buyer, an assumption fee of 1 percent of unpaid principal balance plus legal cost, and a 60 to 120 day timeline. Most CMBS loans permit only one assumption over the life of the loan.
What does the buyer have to demonstrate?
Net worth typically equal to 100 percent of unpaid principal balance, liquidity of 9 to 12 months of debt service, multifamily or commercial real-estate operating experience comparable to the existing borrower, and clean credit history. Buyers below threshold can sometimes assume with a creditworthy guarantor.
What can derail it?
Buyer net-worth or liquidity gaps, undisclosed contingent liabilities, lender concerns about operating experience, or property-condition issues that surface during the lender's reinspection. Buyers should pre-qualify before signing the property contract, finding out at month two that the assumption will not approve costs everyone real money.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1