looking foe an assumable morage?

Question

looking for an assumable mortage either a va or fha

Answer 1

Why? FHA & VA loans often have higher interest rates than Conventional loans.

The only reason you'd look at FHA for that matter is if your credit is not so great. FHA loans to ppl with credit scores under 620 with little to nothing down & allows owners to pay for all of your closing costs.

I don't think you'll find many FHA or VA assumable loans anymore. An assumable mortgage does mean that you still have to qualify through a bank.

You should just talk to a direct mortgage lender to get started, see if you can qualify for any loan, what's best for you whether it is an FHA , VA or conventional loan.

by strictly looking for someone to assume their loan, you're narrowing down your search for a home DRASTICALLY.

Example, 1000 homes are on the market, 200 of them are within FHA loan limits, 2 of them have assumable loans.

not only that but let's just say you find a home that is $200K, the underlying loan is FHA & IS assumable, what are you going to do if that assumable loan amount is only $150K? Do you have $50K to put down?

Answer 2

There is no decent reason to look for an assumable mortgage, unless that mortgage carries an interest rate substantially lower than what is available on the market at this time. Since current interest market rates are still quite reasonable, your chances of finding a lower rate assumable mortgage are low.

If you are operating under the belief that you can assume someone else's mortgage with poor credit on your part, that does not work. In order to assume a mortgage, you need the agreement of the lender, who will apply the same credit requirements to you to assume a loan that you would need to obtain a conventional loan.