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Bill

HB 304

Conventional home mortgage loans; assumption provisions.

2026 Regular Session Introduced by Rip Sullivan

HB 304 eases Virginia rules on assuming conventional mortgages, potentially allowing borrowers to inherit favorable loan terms when purchasing homes, reducing refinancing costs.

Approved by Governor-Chapter 962 (effective 7/1/2026)
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Bill Summary · HB 304

Legislative bill overview

HB 304 modifies Virginia law governing the assumption of conventional home mortgage loans, likely by removing or relaxing restrictions that currently prevent borrowers from transferring mortgages to new owners. The bill has advanced through the Commerce and Labor Committee with unanimous support (15-0), indicating broad agreement on its provisions.

Why is this important

Mortgage assumption rules directly affect home affordability and transferability. If this bill loosens assumption restrictions, it could allow buyers to take over existing mortgages with favorable interest rates rather than obtaining new loans—potentially saving thousands in interest costs, particularly valuable in high-rate environments. Conversely, lenders may face reduced control over loan portfolios and borrower quality.

Potential points of contention

  • Lender concerns: Banks may argue that easier assumptions reduce their ability to adjust rates to market conditions and increase risk exposure to borrowers they didn't originally vet
  • Market impact: Enabling rate-assumption could artificially suppress the secondary mortgage market or create disparities between assumable and non-assumable loans
  • Scope ambiguity: The bill's exact parameters (which loans qualify, assumption fees, lender approval rights) remain unclear from this information and could significantly affect stakeholder positions

Compiled from official sources — confirm details with the bill’s official record.

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