Steve Hart is based in Salt Lake City where he is the founder of Property Management Inc, a franchisor of property management systems for independent property managers across the US. On today's show we are talking about some of the dynamics in the industry. To connect with Steve, visit pmicorp.com

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**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
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Today we're talking about a financial instrument that most buyers have never heard of, most agents don't know how to use, and most lenders have very little incentive to promote.

It's called an assumable mortgage — and in today's rate environment, it might be the most powerful tool sitting unused in the real estate market.

Only FHA, VA, and USDA mortgages are assumable. Conventional and jumbo loans are not assumable because they contain a due-on-sale clause, which requires full repayment of the loan when ownership of the property transfers.

So when a seller with an FHA or VA loan lists their home, a qualified buyer can step into that existing loan — keeping the original rate, the original balance, and the original amortization schedule. You don't originate a new loan at today's rates. You inherit the seller's loan from 2021 at, say, 3.25%.

Assumable mortgages are not a loophole. They are a legal, government-backed mechanism that has existed for decades and works exactly as designed. Based on analysis of 312,367 assumable listings, the average buyer saves $1,187 per month — or $14,244 per year — versus buying at today's rates.

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**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Today we're pulling back from the headlinesand putting today's multifamily stress in its proper historical context. The data coming in from every corner of the lending market is telling a very consistent story. The question is no longer whether there is stress in multifamily. The question is whether the current cycle is starting to rhyme with the last major credit cycle in 2008 to 2010.Let's start with the anchor number: 0.78%. That is Fannie Mae's multifamily serious delinquency rate as of March 31, 2026. This is not a market-wide apartment default rate. It is specific to Fannie Mae's multifamily guaranty book of business, and it measures loans that are 60 days or more past due. The peak in 2010 was 0.8%. We are basically there.

The CMBS default rate is nearly 7%. These should be alarming numbers.

------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)