Frequently Asked Questions About Assumable Mortgages
What is an assumable mortgage?
An assumable mortgage allows a home buyer to take over the seller’s home loan at the same interest rate, repayment period, balance, and other terms.
Essentially, it’s the same exact loan — now just in your name.
What is a mortgage assumption?
Why would I want an assumable loan?
What types of home loans are assumable?
Do you have to be a veteran to assume a VA loan?
Can you assume a conventional loan?
No, in most cases, you cannot assume a conventional loan. Conventional loans often carry a strict due-on-sale clause in their contracts, meaning if the homeowner sells the property, the remaining balance of the mortgage is due immediately.
How do I qualify for an assumable mortgage?
Like any loan, you’ll have to qualify with the loan servicer and meet their requirements to secure your home loan. Assumption Solutions is NOT a lender. However, we can easily facilitate and assist in the transfer process between a home buyer and seller of an assumable loan!
How do you assume a loan?
The loan assumption process can be tedious and complicated. Usually, it involves completing the necessary paperwork, obtaining loan servicer approval, and finalizing the assumption through a closing.
Assumption Solutions provides guidance and assistance in this process. That means we’ll help you complete the loan assumption so you or your real estate agent don’t have to figure out the process.
How long does it take to complete an assumption?
Government guidelines say home loan assumptions should be completed within 45 days of a complete submission, but these are just guidelines. Your assumption can take anywhere between 45/60 days on the fast end and 120+ days on the slow end.
How often are assumptions denied?
What’s the benefit of an assumption to a home seller?
As a seller, you want to sell your home for top dollar. Assumable mortgages can make your property that much more attractive to buyers, especially if the home loan has a lower-than-market interest rate.
Therefore, the lower monthly payments make your home desirable to a large pool of buyers wanting to buy the property. This may result in higher offers or a quicker sale time.
What’s the benefit of an assumption to a home buyer?
Why work with Assumption Solutions? What’s the point?
When working with a firm like Assumption Solutions, you get hands-on support and honest insight from assumable loan experts wanting the very best for you.
Sellers and buyers benefit from our efficiency and swift support. Our team vets the file upfront to ensure its likely approval with the lender, saving you weeks or months of delay. You also get assistance in the file submission which if done wrong can cause significant delays. Your file will be vetted and verified by an expert, with no complications.
How much does it cost to work with Assumption Solutions?
Working with our team is incredibly affordable and low-risk for buyers and sellers! The engagement fee is $50 to buyer side and seller side. If your loan assumption is approved, we’ll collect $700 from the buyer and seller each. Totalling $750 per transaction side.
If your file isn’t approved, you won’t be charged the $700.