2006-10-31 08:34:12 · 4 answers · asked by dannettewheeler@sbcglobal.net 1 in Business & Finance ➔ Renting & Real Estate
An assumable mortgage is just that - assumable. I know that FHA and VA have a lot of assumable mortgages. Meaning that if you are buying a home from someone with an assumable mortgage - you can then take over the mortgage without having to qualify at a new rate, etc.
2006-10-31 08:37:25 · answer #1 · answered by Janice L 2 · 0⤊ 0⤋
Janice is partly correct. Government loans are the ONLY loans that may be assumable. If you allow some one else to assume your payments --They MUST QUALIFY for the mortgage on their own. The mortgage will always report in your credit file as you are the maker on the note. So any lates will be reported in your file and may pull your score down. You may also loose a portion of your equity in the home if there is any for allowing such a transaction. NOT A GOOD IDEA as you can see from what I am telling you. If they default or have serious delinquency on the account you WILL be shown as the responsible party and this could affect your credit rating in the future. The very worst people from my long experience in the mortgage business is to allow a family member to assume or co-sign for on ANY THING.
Good luck
2006-10-31 08:49:58 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
The people you are buying the house from have a mortgage you can take it over that all it means. Its usually not a good idea as there are lots of great deals and you may be missing out on one of them
2006-10-31 08:36:57 · answer #3 · answered by dave m 2 · 0⤊ 0⤋
Buyer can assume existing mortgage with the terms that are already in place. Buyer must still qualify for the loan. Most loans are NOT assumable.
2006-10-31 12:32:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋