Which types of loans are assumable?

Assumable loans allow a buyer to take over the seller's existing mortgage and its terms, which can be advantageous in certain situations. VA (Veterans Affairs) and FHA (Federal Housing Administration) loans are specifically designed to be assumable, meaning that if a property has either of these types of loans, the buyer can step into the seller’s shoes and continue to make payments under the existing loan agreement, provided it's permitted in the loan terms.

For VA and FHA loans, the lender typically cannot deny the assumption, provided that the new borrower meets the credit and income requirements set forth by these government programs. Additionally, since these loans are often more favorable due to lower down payments and interest rates, the ability to assume them can be a significant selling point for the property.

Conventional loans, on the other hand, are not universally assumable. While some may allow assumptions, this is dependent on the individual terms set by the lender and is not a general rule like it is for government-backed loans. Similarly, fixed-rate loans can be assumable, but this is also contingent on whether they are conventional or comply with specific conditions set by the lender, which makes the assumption process less straightforward than with VA or FHA loans.

Therefore, the correct answer