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Harsco 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 Harsco 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 Harsco 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 Harsco employees.

By Wealth Enhancement's Neva Bradley, CFP®

Many Baby Boomers who built long careers with companies like Harsco 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.

Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 Harsco 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 .

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Investment Strategy Alignment: The Harsco Pension Scheme ensures that its investment strategies align with members' financial goals by regularly reviewing its Statement of Investment Principles (SIP) and adjusting strategies based on quarterly performance monitoring. The Trustees use tools such as LCP Visualise to track investment returns and funding levels, ensuring the Scheme is on track for full funding by 2025. This review process helps guarantee that the investment strategies are adequately meeting long-term goals and adapting to market conditions(Harsco Pension Scheme_3…).

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Engagement with Investment Managers: The Harsco Pension Scheme engages closely with its investment managers, delegating stewardship activities like voting on shareholder resolutions. These managers, such as BlackRock, follow rigorous voting and engagement policies, which are reviewed regularly. The Trustees ensure transparency by monitoring managers’ ESG integration and voting behaviors and by addressing significant issues, such as modern slavery or climate risks(Harsco Pension Scheme_3…).

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Retirement Benefits Customization: The Harsco Pension Scheme offers a range of retirement options, including default and self-select investment options that reflect member demographics and retirement preferences. Members can customize their retirement strategies through diversified funds, ensuring their investments are aligned with individual needs. The default strategy has been reviewed to ensure appropriateness for the majority, with options for drawdown, lump-sum withdrawals, or annuity purchases(Harsco Pension Scheme_3…).

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Adapting to Demographic Changes: The Trustees monitor demographic trends and adapt the Scheme’s investment strategies accordingly. For example, as the Scheme matures, the investment allocation moves towards lower-risk assets to reflect the changing membership profile. Regular reviews ensure the Scheme adapts to the evolving needs of its members, helping to reduce risk while maintaining adequate returns(Harsco Pension Scheme_3…).

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Pension Statement Access: Harsco employees can access their pension statements through regular updates provided by the Trustees, typically on a quarterly basis. These statements, including detailed reports of contributions, investment growth, and progress toward retirement goals, help members stay informed and make adjustments as necessary(Harsco Pension Scheme_3…).

How does Harsco incorporate Environmental, Social, and Governance (ESG) considerations into its investment philosophy, and what impact do these principles have on the pension schemeâ€™s performance? A deeper examination into these aspects may enhance employee understanding of socially responsible investing trends within their pension fund.

ESG Considerations: The Harsco Pension Scheme integrates Environmental, Social, and Governance (ESG) principles into its investment strategy, regularly assessing its managers’ ESG practices. These assessments include human rights, climate change, and CEO pay ratios, ensuring that investments are socially responsible and aligned with long-term sustainability goals(Harsco Pension Scheme_3…).

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IRS Limits Impact: The current IRS limits on contributions to retirement plans, such as those applicable in 2024, directly impact Harsco employees by capping how much they can contribute tax-free. Understanding these limits helps employees plan their contributions to maximize employer matching and ensure they take full advantage of their retirement benefits(Harsco Pension Scheme_3…).

With regards to the ongoing performance evaluations, what benchmarks does the Harsco Pension Scheme utilize to measure the success of its investments, and how are these benchmarks selected? This insight can help employees understand the performance metrics that drive the long-term viability of their pension scheme.

Benchmarking Investments: The Harsco Pension Scheme uses various benchmarks to assess the performance of its investments. These benchmarks are selected based on expected risk and return profiles and are reviewed quarterly. Monitoring against these benchmarks ensures that the Scheme’s strategies remain aligned with long-term funding goals and adapt to changing market conditions(Harsco Pension Scheme_3…).

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Investment Options and Information: Harsco employees can obtain detailed information about their pension’s investment options, including the associated risks and potential returns, through regular reports from the Trustees and investment consultants. This transparency allows employees to make informed decisions about their pension participation(Harsco Pension Scheme_3…).

What is the preferred method for employees to contact Harsco to gain further clarification on their questions about the pension scheme, and what resources are available for them during the retirement process? Clear communication channels and support mechanisms are vital as employees navigate their retirement preparations. These questions are designed to provoke thought and discussion around the operations, benefits, and governance of the Harsco Pension Scheme while providing employees with a foundation for understanding their retirement options.

Communication Channels: Employees can contact the Trustees of the Harsco Pension Scheme for clarification on pension-related questions through established communication channels. Resources, including personalized financial advice and regular meetings with investment managers, are available to assist employees during the retirement planning process(Harsco Pension Scheme_3…).