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Campbell Soup Employees and the Hidden Housing Opportunity: Understanding Assumable Mortgages in a Higher-Rate Market

“Assumable mortgages can occasionally create opportunities in a higher-rate environment, but Campbell Soup employees approaching retirement should evaluate how housing decisions fit into their broader financial picture before making a move,” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“During periods of higher mortgage rates, assumable mortgages can become part of the conversation, but Campbell Soup employees nearing retirement may benefit from viewing housing choices within the context of long-term income planning, health care costs, and overall retirement readiness,” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How assumable mortgages work and why they are being discussed more often in today’s higher interest rate environment.
The eligibility requirements, limitations, and financial considerations involved in transferring an existing mortgage.
How housing decisions may connect to broader retirement planning considerations for Campbell Soup employees.

By Wealth Enhancement's Neva Bradley, CFP®

Many Baby Boomers who built long careers with companies like Campbell Soup love their homes but quietly recognize that they may no longer need as much space. Once the nest empties, the four-bedroom house that once held children, pets, and holiday gatherings can begin to feel oversized.

At the same time, many younger families are searching for larger homes that better meet their needs. This housing dynamic may set the stage for the use of assumable mortgages, an arrangement that allows a homebuyer to take over the seller's existing mortgage.

Campbell Soup employees approaching retirement could benefit from this strategy, particularly for those who may have locked in historically low mortgage rates, like that those prevailed in 2020 and 2021. During that period, 30-year fixed mortgage rates briefly dropped below 3%, and many homeowners obtained loans below 4%. ¹

In today’s higher rate environment, sellers could arguably use the leverage of an assumable mortgage to secure a higher purchase price on their homes in exchange for allowing the buyer to take on a mortgage at rates lower than current market averages.

What Is an Assumable Mortgage?

An assumable mortgage allows a buyer to take over the seller’s existing loan rather than obtaining a new mortgage. If the lender approves the transaction, the buyer may take on the loan’s existing interest rate, remaining balance, and repayment terms, something that could benefit Campbell Soup employees who obtained home loans during a lower rate period.

Instead of obtaining a new mortgage at current rates, a qualified buyer could potentially assume a homeowner’s mortgage that originated during the pandemic-era housing market at a rate near 2.75% or 3%. This feature sometimes becomes relevant when Campbell Soup homeowners evaluate potential selling strategies.

However, this is only possible if the buyer meets the lender’s qualification requirements and the mortgage itself allows assumption. In many cases, the lender still reviews the buyer’s credit profile and financial standing, which may influence the practicality of this option for Campbell Soup employees.

Loans That May Be Eligible

Not every mortgage can be assumed. Government-backed loans often allow assumptions, including:

- FHA loans

- VA loans

- USDA loans

Conventional loans backed by Fannie Mae or Freddie Mac typically do not allow assumptions, although certain adjustable-rate mortgage structures may permit limited forms of assumption depending on the loan terms. This distinction can matter for Campbell Soup retirees evaluating potential buyers.

Even when a mortgage is assumable, the buyer generally must still qualify with the lender or loan servicer. Credit review and financial verification are normally required before an assumption is approved, something Campbell Soup employees should understand when exploring this strategy.

An Important Detail: Seller Liability Release

One of the most significant—and sometimes misunderstood—aspects of mortgage assumptions is the release of liability.

If the lender does not formally release the seller from responsibility, the seller may remain legally liable for the mortgage even after the loan has been transferred to the buyer. This detail can be important for homeowners considering this type of transaction.

If the buyer later defaults and the seller was not properly released, the seller could still face financial consequences related to the loan. For that reason, lender approval and proper documentation are essential parts of the process for Campbell Soup employees considering an assumable mortgage sale.

The Reality of the Down Payment

One practical challenge with assumable mortgages is home equity.

Home values have increased significantly over time. For example, if a home originally purchased for $500,000 is now worth $700,000 and the remaining mortgage balance is $420,000, the buyer must pay the difference between the home’s price and the remaining loan balance. This type of equity gap may be something Campbell Soup employees encounter when selling a property.

That difference may require:

- A significant cash down payment

- A second mortgage to cover the remaining amount

This can create challenges for buyers, particularly first-time buyers, which may influence how sellers structure potential transactions.

Additional Factors to Consider

Several other factors can affect how practical an assumable mortgage strategy may be.

Approval Timelines

Certain mortgage programs include timelines for evaluating assumption requests. For example, some FHA and VA guidelines outline how quickly lenders should review completed applications, though actual timelines may vary for buyers interested in properties owned by Campbell Soup retirees.

Delinquency Restrictions

Many mortgage programs require the loan to be current—or brought current during the transaction—before the assumption can be approved. This requirement may apply to properties owned by Campbell Soup employees considering a sale.

VA Loan Eligibility

With VA loans, the original borrower’s VA entitlement may remain attached to the property unless it is properly substituted. This detail could affect the seller’s ability to use VA benefits for a future home purchase, something that may matter for some Campbell Soup employees who are veterans.

Fees

Assumable mortgages may include administrative or transfer fees charged by the lender or loan servicer. While these costs may be lower than those associated with originating a new loan, they still need to be considered by buyers and sellers.

Second Mortgage Considerations

If the buyer needs a second loan to cover the difference between the purchase price and the assumable balance, coordinating with multiple lenders may make the transaction more complex. This situation occasionally arises when Campbell Soup employees have accumulated significant equity in their home.

Retirement Planning and Housing Decisions

Housing decisions often connect to broader financial planning considerations.

For individuals approaching retirement, downsizing may involve more than simply reducing square footage. Factors such as cash flow, liquidity, investment allocation, taxes, and long-term planning often become part of the conversation for long-tenured Campbell Soup employees preparing for retirement.

At The Retirement Group , housing decisions are frequently reviewed alongside:

- Retirement income planning

- Tax considerations

- Health care planning

- Estate planning

- Long-term portfolio management strategies

For many households, a home represents one of their largest financial assets. Decisions about downsizing, selling, or financing a future home purchase can play an important role in retirement planning for Campbell Soup employees.

Thinking About Moving?

If downsizing is part of your retirement considerations, it may help to review your full financial picture before making a decision.

The Retirement Group often discusses housing decisions with individuals and families within the context of broader retirement planning.

To learn more about how housing decisions may fit into your overall retirement strategy, you can speak with a member of The Retirement Group at (800) 900-5867 .

Downsizing is not only a real estate decision—it can also become an important element of long-term financial planning.

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Sources:

1. Federal Reserve Bank of Philadelphia. ' The Pandemic Mortgage Boom ,' by Natalie Newton, James Vickery. Q3/Q4 2022.

2. Freddie Mac. Market Watch: Housing Trends Report . Freddie Mac Single-Family Division, 2022, p. 17. https://sf.freddiemac.com/docs/pdf/other/market-watch-housing-trends_rrs22.pdf.

3. United States, Department of Veterans Affairs, Veterans Benefits Administration. Circular 26-23-10: VA Loan Assumption Updates . 22 May 2023, p. 1. https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-23-10.pdf.

4. United States, Department of Agriculture, Rural Development. HB-1-3555 Single Family Housing Guaranteed Loan Program Technical Handbook . USDA Rural Development, rev. 14 Apr. 2025, pp. 17-14–17-15. https://www.rd.usda.gov/media/file/download/hb-1-3555-consolidated.pdf.

5. Stucki, Barbara R., Jane Tavares, and Marc A. Cohen. Using Home Equity to Sustain Cash Flow for Aging in Place . National Council on Aging, Apr. 2021, pp. 3, 5, 7, 21, 27. https://assets.ncoa.org/ffacfe7d-10b6-0083-2632-604077fd4eca/3c1dd0cf-08a8-46ed-812c-5a56fdf6ded4/2021-NCOA_Home%20Equity-Report%20TWO_5-5.pdf .

What are the eligibility requirements for participating in the retirement plan at the Campbell Soup Company, and how does this affect employees who are newly hired or rehired after December 31, 2010? Understanding these eligibility criteria is crucial for current and prospective employees of the Campbell Soup Company, as it dictates participation in the retirement benefits that can provide financial security upon retirement.

Eligibility for Participation: Employees hired or rehired after December 31, 2010, are not eligible for the Campbell Soup Company's Retirement and Pension Plan. However, regular full-time or part-time employees scheduled to work at least 20 hours per week become immediately eligible for participation. Temporary or part-time employees scheduled to work less than 20 hours per week become eligible after working 1,000 hours in their first 12 months, or in subsequent 12-month periods(Campbell_Soup_Company_R…).

Can you explain the differences between the Cash Balance Benefit and the Grandfathered Benefit under the Campbell Soup Company's retirement plan? This distinction is important for employees to understand how their length of service and date of hire could significantly influence their retirement earnings and options, potentially impacting their financial planning for retirement.

Cash Balance Benefit vs. Grandfathered Benefit: The Cash Balance Benefit provides credits based on a percentage of pay, while the Grandfathered Benefit applies to those hired before May 1, 1999. The Grandfathered Benefit is based on the Final Average Pay and years of service. Employees eligible for the Grandfathered Benefit receive the greater of the Cash Balance or Grandfathered Benefit, potentially resulting in higher retirement earnings based on their tenure(Campbell_Soup_Company_R…).

How does the vesting schedule work for the Campbell Soup Companyâ€™s retirement plan, and what implications does it have for employees who leave the company before becoming fully vested? Employees of the Campbell Soup Company should consider the vesting requirements to ensure they optimize their benefits and understand how employment duration aligns with retirement planning strategies.

Vesting Schedule: Employees become fully vested after completing three years of service or reaching age 65 while employed. If an employee leaves before becoming vested, they forfeit their benefit. This schedule emphasizes the importance of remaining with the company for a sufficient duration to secure retirement benefits(Campbell_Soup_Company_R…).

What options are available for employees of the Campbell Soup Company when they decide to retire, particularly regarding the form of benefit payment? Understanding these options is essential for planning a comfortable retirement, as employees need to make informed choices that align with their financial goals and personal circumstances.

Benefit Payment Options: Campbell Soup Company offers several forms of benefit payments, including a lump sum, life annuity, and joint survivor annuity. Employees can choose the payment form that best suits their retirement goals. Options like the lump sum allow for flexibility, while annuities provide steady income during retirement(Campbell_Soup_Company_R…).

How does the Campbell Soup Companyâ€™s retirement plan handle employees who return to work after a break in service, especially concerning their vesting and benefit accrual? Employees of the Campbell Soup Company need to be aware of these policies to gauge how a break in employment could potentially impact their retirement plans and financial well-being.

Reemployment After Break in Service: If an employee returns after a break in service of less than five years, their prior vesting service and benefits are restored after completing another year of service. However, if the break exceeds five years, prior service is not restored unless the employee was already vested before the break(Campbell_Soup_Company_R…).

What are the implications for spouses of employees in the Campbell Soup Company retirement plan regarding survivor benefits and the necessity for spousal consent under certain circumstances? Knowledge of these provisions is critical for employees as they plan for both their retirement and the potential financial security of their spouses.

Spousal Consent and Survivor Benefits: Spouses are automatically designated beneficiaries unless a waiver is signed. Survivor benefits include either the cash balance account or an actuarial equivalent of the accrued benefit. Spousal consent is necessary if employees choose another beneficiary or a different form of payment, ensuring spousal financial security(Campbell_Soup_Company_R…).

In what ways does the Campbell Soup Company ensure compliance with IRS regulations regarding retirement benefits, and how might changes in these regulations impact employees? Employees should be aware of the relationship between their retirement plans at the Campbell Soup Company and IRS compliance, as ongoing regulatory changes can affect their retirement planning.

IRS Compliance: The plan adheres to IRS regulations, which impose limits on compensation and benefits. Compliance is essential to maintain the tax-advantaged status of the retirement plan. Changes in IRS rules may affect contributions, benefit limits, and tax treatment of distributions(Campbell_Soup_Company_R…).

How is the Cash Balance Benefit calculated for employees of the Campbell Soup Company, and what factors influence the growth of this benefit over time? Employees need to understand this calculation to better plan their financial futures and make informed decisions regarding their contributions and potential retirement income.

Cash Balance Benefit Calculation: The Cash Balance Benefit grows annually through pay-based credits and interest. The percentage of eligible pay credited to the account increases with the employee’s age. This structure encourages long-term employment by increasing retirement savings over time(Campbell_Soup_Company_R…).

What steps should employees of the Campbell Soup Company take to apply for retirement benefits, and what is the timeline for notifying the company about their retirement intentions? Knowing the correct procedures and timelines is vital for employees to ensure a smooth transition into retirement and the timely receipt of benefits.

Retirement Application Process: Employees must notify the Campbell Benefits Center approximately 90 days before retirement to initiate their benefits. This timeline ensures that benefits begin promptly, and employees can make informed decisions about their retirement options(Campbell_Soup_Company_R…).

How can employees of the Campbell Soup Company reach the Campbell Benefits Center to inquire further about their retirement plans or address specific questions related to their benefits? It is essential for employees to have clear contact information, allowing them to seek assistance and enhance their understanding of the retirement options available to them.

Campbell Benefits Center Contact: Employees can reach the Campbell Benefits Center for inquiries related to their retirement plans via the website www.myCampbellBenefits.com or by calling 877-725-2255, ensuring easy access to information and support(Campbell_Soup_Company_R…).

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For more information you can reach the plan administrator for Campbell Soup at 1 Campbell Place Camden, NJ 8103; or by calling them at +1 856-342-4800.