fia

Definition

Full Interest Assumption—when a buyer takes over the seller's existing mortgage with full lender approval, including qualifying based on creditworthiness. The respectful way to inherit someone else's loan terms.

Example Usage

He negotiated an FIA to assume the seller's 3% interest rate mortgage rather than getting a new loan at 7%.

Origin

Mortgage assumption terminology from 1970s-1980s when assumable loans were common

Fun Fact

Most conventional loans after 1989 contain due-on-sale clauses preventing assumptions, making FIAs rare outside of FHA and VA loans.

Source: Federal Housing Administration loan assumption guidelines

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