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The workaround for a 3% mortgage just got harder to pull off
Raunaq Singh had a bold plan to unlock housing affordability when he launched Roam in 2023: create a Zillow-like marketplace connecting homebuyers with home sellers whose mortgages are eligible to be "assumable," enabling buyers to take over the existing mortgage—including its presumably much lower rate. His firm would also hold the hand of buyers and agents along the way. Given that mortgage rates had shot up above 6.0%, while millions of outstanding VA, USDA, and FHA mortgages still carried interest rates with a 4-handle, 3-handle, or 2-handle, it's understandable why Roam thought consumers would bite at an assumable marketplace.
Fast-forward to August 2026, and Roam's website says it has exited the assumable-marketplace business, stating that: “Roam no longer provides home discovery or assumption-processing services.” It's unclear what Roam—which raised $11.5 million in Series A funding last year, led by Khosla Ventures' Keith Rabois—will pivot to.
Roam hasn’t yet responded to ResiClub's inquiry for comment.
Roam pulling back from the assumable market is another blow to the space. While completed assumptions have jumped up since rates spiked, they’re still only a tiny fraction of the marketplace given the numerous hurdles facing the assumable market.
For today's article, ResiClub overviewed what we consider the 9 main barriers/hurdles for the assumable mortgage market in the United States. While some of these hurdles can be overcome—and you will find some buyers who've pulled this off and are happy with having done so—the ability to scale an assumable business remains challenging.
-> Assumable barrier 1: Only a slice of outstanding U.S. mortgages are assumable (mostly FHA, VA, USDA).
-> Assumable barrier 2: If an assumable-eligible home is being bought for $400K, and the owner's mortgage is $250,000 at a 2.99% rate, the buyer would need to cover the $150K difference—unless they're willing to do a blended rate. That kind of money is often too much for first-time buyers to overcome. That's a BIG hurdle.
-> Assumable barrier 3: Low-rate mortgages have a greater share of each payment going toward principal. That means the further the ZIRP era gets in the rearview mirror, the faster those outstanding balances get paid down—compared to a higher-rate mortgage—which makes the barrier 2 hurdle even tougher. Indeed, even though resale turnover on a population-adjusted basis is hovering near a four-decade low, the share of outstanding non-conventional government mortgage debt (FHA, USDA, and VA) with an interest rate under 4.0% has shrunk to 40.2% as of Q1 2026. Back in Q1 2022, before interest rates spiked, 75.6% of outstanding non-conventional government mortgage debt (FHA, USDA, and VA) had a rate below 4.0%.
-> Assumable barrier 4: It's hard to find the home's for sale that have assumable mortgages—given you need to know what mortgage they have. That was the part Roam was addressing.
-> Assumable barrier 5: Doing an assumption makes the process longer, and requires getting the seller to buy in. Having a firm like Roam helped to make that process a little easier and more likely that the seller would play ball.
-> Assumable barrier 6: If a non-veteran assumes a VA loan, the seller’s VA entitlement tied to that mortgage generally remains tied up until the loan is paid off. That can limit the seller’s ability to use a VA loan to purchase another home.
-> Assumable barrier 7: Some sellers want a premium if they’re going to go the assumption route.
-> Assumable barrier 8: Many folks in the industry still haven’t done an assumption. This hurdle was made a little easier by a firm like Roam.
-> Assumable barrier 9: Many lenders/servicers aren't especially motivated to process assumptions. Assumption fees are much lower than what a new origination would generate, so there's often limited financial incentive to prioritize or streamline them
Today
This is the final day to get the $199 (Early Bird I) pricing for ResiDay 2026. Tomorrow at 10:00 AM ET, ticket prices will jump from $199 (Early Bird I pricing) to $299 (Early Bird II pricing). Tickets purchased after October 1st will cost $399.
ResiDay 2026 will be on Friday, November 6th in New York City.
ResiClub members (paid tiers) can find details about their additionally discounted tickets here.
If you have any questions about ResiDay 2026, email: [email protected]
A look at the home price correction in the McKinney, Celina, Sherman areas in the Dallas area housing market
According to Moody's Analytics model, Sherman, TX micro area (Grayson County, TX) still has much of its Pandemic Housing Boom froth (although its current correction will accelerate that froth blow off).
Over the past week, ResiClub members (paid tiers) got these 3 additional housing research articles:
