Significant savings are available to home buyers who assume a mortgage. Rather than applying for a new loan, take over the sellers existing mortgage to avoid all traditional settlement and down payment costs. Mortgage assumptions are much easier and less costly for all consumers.
Knowledge is power!
BE CREDITWORTHYReview your credit score, and financial status. As of July 2012, FHA requires a minimum credit score of 580. Lenders often require a higher credit score of 620.
USE OUR SEARCH TOOLFind a loan to assume by searching our national assumable mortgage directory.
EXPRESS INTERESTContact the seller. Be prepared to discuss your interest in the property and your desire to assume their loan.
VERBALLY AGREE TO PROCEEDWhile this is a non binding task, it will prompt you to begin the assumption process with their lender.
WAIT FOR THE ASSUMPTION PACKAGEThe seller will order an "Assumption Package" from their lender. Most lenders are able to mail this to them in just a few weeks.
ANALYZE THE ASSUMPTION PACKAGEReview and complete the lenders instructions with the seller. Make sure you understand and agree with the terms before you return the completed documents to the lender.
EXPECT 30 DAYSExpect 30 days for the lender to complete your request. It is wise to confirm the lender has received and is satisfying the request. Some lenders may specify the amount of additional time needed.
KEEP YOUR APPROVAL & ASSUMPTION DOCSThe lender will notify you of approval once everything is processed and the loan transfer is complete.