Can the person who is making the mortgage payments assume the mortgage from the original borrowers without any difficulty?

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. ________________________________________________________________________

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!


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