You would have to ask the bank with whom you want to get the
mortgage with. Some loans do have an assumption feature that allows
this, but not many. And assumptions are never a good idea for the
seller. You need to go through a property purchase transaction or
execute contract for deed so that you can complete that and in
future gain ownership of the property. ____________ Actually - FHA,
VA, and some Conventional ARMs are ASSUMABLE. The assumption does
require some qualification but you can actually take over the
existing terms, conditions, payment, and rate of the existing loan
and purchase the home.
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The existing mortgage would have to be assumable in order for
someone to take over the mortgage loan in there name without
changing the terms of the initial agreement with the lender. FHA
mortgages are the most popular form of assumable mortgages.
'''An assumable mortgage is defined by the seller of a home
having the ability to transfer their mortgage loan to the new
buyer. Before taking over the mortgage loan, the lender of the
assumable mortgage will require the buyer to be credit worthy and
will execute its due diligence by underwriting the mortgage loan
again with the new buyer's credit history being reviewed.''' An
assumable mortgage is especially beneficial when mortgage rates are
as low as they are today. For example, if a borrower gets a
mortgage today, then decides to sell their home in five years,
rates can potentially be in the 8% range. '''The assumability of a
mortgage will make the home more marketable by allowing the seller
to offer any potential buyers a mortgage rate in the 4%-5%
range.''' An assumable mortgage is also valuable because it is far
less expensive when compared to the costs of a new loan. One
example of the cost savings within an FHA assumable mortgage is
because an appraisal is not required. In addition to the cost
savings, the process is streamlined, allowing for a basic credit
check to determine a borrower's income is adequate enough to
support the mortgage loan. So if you're looking to purchase a home,
an FHA assumable loan makes the most sense, now and in the future.
I hope this information helps. Best of luck!
Regards,
Total Mortgage
