Assumable Mortgage Home Buyers
Assumable Mortgages for Home Buyers: Low Rates, Short Terms
- • Get a list of homes in your area
- • Short payment terms
- • Low Interest Rates
- • Minimal Paperwork
Specialized Services
Find Your Home In Our Directory
Over 20,000 to choose from
Your next home is just a phone call away. All you need is our data list. It shares who, what, why, when, and how to contact the seller. We provide assumable property data on homes not already on the market for sale, so that you or your agent can get there first! Even better, the assumable loans on our list have already established interest rates as low as 2%. Position yourself to connect before anyone else and be ready to take over.
Significant savings are available to home buyers who assume a mortgage. Rather than applying for a new loan, take over the remaining payment terms and interest rate of the sellers "existing mortgage". A mortgage assumption is less costly for consumers and takes approximately 45 days to process (see HUD 4155 pdf).
Did you know?
- • FHA and VA loans are assumable
- • The Federal Government regulates this strategy
- • There is hidden value in the life of any assumable loan
Knowledge is power!
Home buyers searching for their first home do not have to wait any longer. Even with a low credit rating homeownership is possible without a large downpayment. More impressively, these assumable loans do not have a high interest rate, & offers a payment term that is less than 25 years. Start by requesting a list of assumable properties in your area.
10+ Years of Experience
See How Much You Could Save
| Comparison | Traditional New Loan | Assumable Mortgage |
|---|---|---|
| Home Price | $350,000 | $350,000 |
| Loan Amount | $315,000 | $280,000 (existing balance) |
| Interest Rate | 7.5% | 3.25% |
| Monthly Payment | $2,204 | $1,218 |
| Monthly Savings | — | $986/month |
| 30-Year Savings | — | $354,960 |
Every Assumable Mortgage Has Hidden Value — Do the math
The value hiding behind an existing mortgage can be easy to find. It can be found in the low interest rate. It also can be found in the payments already applied to the mortgage. In example: If 60 payments (5yrs) of $1000 have already been applied to the mortgage, the hidden value is $60,000. The formula is that simple.
Short Term Benefits
Keep your coins. Lower cost. Reduced payment terms. Low interest rates. Minimal paperwork. In example: There are no Fannie Mae & Freddie Mac delays because the loans were already guaranteed by them.
Immediate Benefits
Keep your cash. Some lenders may request a small amount to secure the loan, but this cost normally does not exist nor exceed $500.00. A credit score of 620 or better increases your potential.
Long Term Benefits
Keep adding it up over time. Buyers will capture the most savings when they take over a loan that is at least 5 years old. Any mortgage with a reasonable interest rate has a result that is better than new financing.
A Successful Assumption — 8 Easy Steps
Step 1 — BE CREDITWORTHY
Review 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.
Step 2 — USE OUR SEARCH TOOL TO ORDER A DATA LIST
Find a loan to assume by searching our national assumable mortgage directory.
Step 3 — EXPRESS INTEREST
Contact the seller. Be prepared to discuss your interest in the property and your desire to assume their loan.
Step 4 — VERBALLY AGREE TO PROCEED
While this is a non binding task, it will prompt you to begin the assumption process with their lender.
Step 5 — WAIT FOR THE ASSUMPTION PACKAGE
The seller will order an "Assumption Package" from their lender. Most lenders are able to mail this to them in just a few weeks.
Step 6 — ANALYZE THE ASSUMPTION PACKAGE
Review 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.
Step 7 — EXPECT 30 DAYS
Expect 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.
Step 8 — KEEP YOUR APPROVAL & ASSUMPTION DOCS
The lender will notify you of approval once everything is processed and the loan transfer is complete.
The Big Underwater Mortgage Misconception
It's about time we correct the underwater mortgage misconception. Yes, negative equity, or being upside down means the market value of the home has fallen below the mortgage balance owed. There is however one misconception to correct about this. Most believe the person who is buying the home is underwater, but truly it's the lender who is underwater. How so? Well consider this. We all know the person who agreed to pay for the property does not truly "own it" till the balance is paid in full. The familiar phrase "The owner owes more than the home is worth" misleads many to be held hostage by the thought, they are in the hole.
But while the home buyer does have a payment term to keep, the "owner" in the meantime is THE LENDER. Facts: The Lender owns the property until the note is paid off. Otherwise they would have no power over the property. Buyers who have committed to paying the promissory purchase note should not feel trapped or held hostage by the notion commonly felt in the US.
Another fact is: If the tenant needs to sell the house, instead of taking a beating by the slumping market and short sale strategy, they can simply have another buyer take over their legal obligation without defaulting on the loan. All FHA and VA mortgages are assumable. There are many financial benefits to this as well.
Videos — Learn About Assumable Mortgages
- • Buyer Intro — Assumable mortgages saves you money.
- • Buyers - Assume a loan — Available to you right now!
Fact Finding
Assumable Consultations — 30 minutes
Discover how to effectively assume a mortgage that already has a low grandfathered interest rate and a payment term that is less than 25 years. We will focus on specific areas that are relevant to you. We avoid legal jargon and help familiarize our clients with the process, explain how to locate properties and start the assumption steps.
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