How do I assume a persons mortgage. An assumable loan? Where/how can I find them?

Hello car:

Finding them is going to be difficult. Most loans written over the last 20 years are NOT assumable. Some FHA loans are assumable and some Vetrans loans are.

If you find one, they're easy to assume. But... you're not going to find one, not really.

excon

I found a real estate agent and he says he has a few -assumeable loans? Is he trying to CON me excon?? :)

excon.

Have you ever bought/or been at a tax lien sale? Is it a good deal? I am interested in Nevada or Arizona tax sales--maybe California

Ok, it is not something that you do and take property away from someone, it is a way people sell their homes to someone else.

So these people will have listed their homes for sell with this real estate agent or have it listed on the MLS service.

While many loans can't be assumed many can be, The loan I have can be,

So if I list my house for sell, I may want 100,000 for the house, and have a loan for 60,000 on it. You can pay me 40,000 in cash or get a second mortgage and then assume my 60,000 loan at my very nice low interest rate.

often if someone is about to lose their home, they may sell it for very little over the mortgage, so all you may have to pay is the loan assumption fees.

But remember a loan you can assume is not really any sort of deal unless it is at a very low rate, it also does not mean you are getting to buy a home cheaper, most often they will expect the difference between the value of the home and the mortgage to be paid for.


And every mortgage that can be assumed will have different rates of interest, different fees to allow you to assume it, and varouis closing costs.

In almost no case if any are you going to not be paying fees in cash to assume a mortgage

Assumability is dictated by each bank. In my area most mortgages ARE assumable, BUT the person who wants to assume it must go through the bank to do it - and must be approved.

As the buyer, you should not pay a real estate agent anything. The seller is the one who pays the fee/commission.

Hello Rick:

What's the point of them being assumable then? The bank isn't going to approve anyone for a loan that was written with an interest rate below market rates. Why would they? And, what buyer would want to assume a loan above market rates? Especially since he'd have to come up with a bigger down.

The old VHA and FHA loans I'm talking about are assumable - period - by anybody.

excon

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Originally Posted by excon

Hello Rick:

What's the point of them being assumable then? The bank isn't going to approve anyone for a loan that was written with an interest rate below market rates. Why would they? And, what buyer would want to assume a loan above market rates? Especially since he'd have to come up with a bigger down.

The old VHA and FHA loans I'm talking about are assumable - period - by anybody.

excon

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You make a good point. I was not implying an inherent benefit to loan assumptions... just sharing my experience.

I've purchased many properties over the years - and many of them had assumable loans... but typically I could negotiate a better interest rate so did not assume. I'm scratching my chin over it and can't even think of once that I assumed an assumable loan.