Has anyone ever purchased a home by assuming the current mortgage? What are the costs? Are there any other problems they may go along with it? Is it difficult or easy to do?
Hi David, most mortgages have a "due on sale" provision which means they are not assumable. However, some lenders notwithstanding will allow you to assume the mortgage if the mortgage is adjusted to reflect current interest rates. You would still have to qualify but your closing costs should be less. If you can find a FHA mortgage dated prior to Dec. 14, 1989 or a VA mortgage dated prior to March 1st, 1988 you can assume the mortgage with no difficulties and you DON'T have to qualify. The Vendor is still on the hook for the mortgage you assume unless he gets a release from the lender. Hope this helps, LES50[ Edited by Les50 on Date 06/18/2004 ]
I think you'll find some knowledgeable people in the Subject To forum.
Hi David, most mortgages have a "due on sale" provision which means they are not assumable. However, some lenders notwithstanding will allow you to assume the mortgage if the mortgage is adjusted to reflect current interest rates. You would still have to qualify but your closing costs should be less. If you can find a FHA mortgage dated prior to Dec. 14, 1989 or a VA mortgage dated prior to March 1st, 1988 you can assume the mortgage with no difficulties and you DON'T have to qualify. The Vendor is still on the hook for the mortgage you assume unless he gets a release from the lender. Hope this helps, LES50[ Edited by Les50 on Date 06/18/2004 ]