3% Interest Rates Are Still Out There — Here’s How to Get One

Case Study: How One Family Scored a 3.25% Rate in a 7% Market
In late 2024, the Johnsons were priced out of their dream neighborhood. Every lender they spoke to quoted rates around 7%, which pushed their monthly payment almost $900 higher than they could afford. Instead of waiting for the Fed to act, they explored alternative strategies.

Through a local title company, they found a veteran who had purchased his home in 2021 with a VA loan locked at 3.25%. By assuming the loan, the Johnsons stepped directly into that rate — without paying new origination fees or getting hit with today’s market rates.

The difference was life-changing:

Monthly payment reduced by $850 compared to a new loan at 7%
Saved over $200,000 in projected interest over the life of the loan
Kept enough monthly cash flow to invest in a rental property six months later

What most buyers thought was impossible — securing a “legacy” 3% mortgage — was simply a matter of knowing where to look and how to structure the deal.

Hidden Strategies for Locking in Yesterday’s Mortgage Rates

If you’re tired of being told to “just wait for rates to drop,” this guide is for you. Below, you’ll discover three proven methods — plus advanced strategies — to secure legacy-level mortgage rates in today’s high-rate market.

1. Assume a VA Loan

Take Over a Veteran’s Loan — Keep Their Rate

VA loan assumptions allow qualified buyers to step into a veteran’s existing mortgage. If the home was financed between 2020–2022, the rate is often locked between 2.5% and 3.5%.

Why It Works:

Keep the seller’s low interest rate — not today’s 7%
No appraisal required
Minimal fees
Open to both veterans and non-veterans

Finding VA Assumable Homes:

Search MLS with keywords: “VA loan,” “assumable,” “low interest mortgage”
Target homes purchased 2020–2022
Ask title companies to pull VA-backed loans and reach out directly

2. Assume an FHA Loan

The Hidden Goldmine Most Buyers Overlook

FHA loans are also assumable and were widely used during the low-rate years. Many are locked at 2.75%–3.5%.

Why It Works:

Tens of thousands of FHA homes carry sub-4% rates
Easier qualifications than conventional loans
Not limited to first-time buyers

Finding FHA Assumable Homes:

Review public loan data or use title services
Focus on homes purchased 2020–2022 under $500K
Ask listing agents directly if the seller has an FHA loan

3. Owner Financing

Create Your Own Mortgage — No Bank Required

Negotiate directly with the seller to set your rate and terms. Many sellers will agree to 3% (or lower) in exchange for full price.

Why It Works:

You control the interest rate
Easier qualification for self-employed or credit-challenged buyers
Perfect for high-equity or inherited properties

Finding Owner-Financed Deals:

Search terms like “owner finance” or “seller will carry” on Craigslist, Facebook, and MLS
Look for listings 60+ days old
Target landlords, inherited homes, or vacant properties

Bonus Strategies

Portfolio Lenders: Local banks and credit unions sometimes offer in-house ARMs as low as 3.99%. These are rarely advertised — you need to walk in and ask.
Subject-To Financing: Buy a home “subject to” the existing mortgage. More complex, but powerful when done right with legal guidance.

Conclusion: Lock in Yesterday’s Rates, Today

Most buyers are paying 7%. You don’t have to. VA and FHA assumptions, owner financing, and creative lender strategies are still putting 3% mortgages within reach.