Assumable Mortgages for Home Buyers Simplified
You’re ready to buy your perfect home, but what about the issues surrounding your assumable mortgage? Understanding the intricacies as a home buyer assuming a mortgage, including eligibility criteria and approval processes, can be confusing for anyone. Smarter home buying starts with you and Assumption Solutions.
Your Bottom Line to Better Understand the Assumable Mortgage Basics
Home buyers like you are fighting high mortgage rates by trying to lessen ownership costs. The current homeowner passes their mortgage loan to you (the buyer) for a mortgage rate lower than today’s current rate.
Traditional or Conventional Assumable Mortgage
These conventional mortgages are generally offered by private lenders, like banks and credit unions; some still allow buyers to assume existing loan terms.
Federal Housing Authority Assumable Mortgage
FHA-insured loans may be assumable, subject to lender approval and eligibility criteria, and offer low down payments and flexible credit requirements.
Department of Veterans Affairs Assumable Mortgage
VA loans are assumable by qualified buyers, typically veterans, active-duty service members, and their eligible spouses, with no down payment possible.
Surprising Assumable Mortgage Advantages to Save You a Fortune
Assuming your mortgage comes with some big advantages when you partner with Assumption Solutions. Your financial goals are met and aligned with your future plans with honest advice from real estate professionals. Some of the biggest benefits include:
Low Interest Rates
If your assumable mortgage has a lower interest rate than current market rates, you get reduced monthly payments and immediate savings on your monthly housing expenses.
Reduced Closing Costs
Assuming a mortgage can bypass the need for a new loan origination process to move into your new home. So, there may be reduced closing costs typically associated with obtaining a new mortgage.
Faster Closing Process
Assumptions can be lengthy, but our role is to help all parties get the fastest possible closing process with the least amount of headaches.
Flexible Financing Options
Assumable mortgages offer more flexible financing options, which can be advantageous for buyers who may not qualify for a new mortgage due to credit or income issues.
More Stable Terms
Assuming a fixed-rate mortgage allows any home buyer to lock in a stable interest rate and payment schedule, providing predictability and peace of mind in a fluctuating market.
Steps to Your Affordable Assumable Mortgage
Relieve your uncertainties about buying a home and assuming a loan in Colorado Springs. Make this process enjoyable and build your new life in a house that’s destined to be yours. Follow these easy steps to success:
Step 1
Contract your home with an existing assumable mortgage. Most commonly, this home will have a guaranteed USDA, FHA, or VA assumable mortgage. An interest rate below current market interest rates is ideal, and we work hard for it.
Step 2
The Assumption Solutions team will determine if we think you would have a high likelihood of success in getting approved for the assumption by the existing mortgage servicer who processes the paperwork for approval.
Step 3
We’ll help you navigate a successful submission directly to the servicer. Errors at this stage are what commonly extends the process beyond the common assumption timeline. We’re here to keep you on track.
Step 4
Once the existing mortgage holder approves your mortgage assumption, the closing can finally begin between you and your seller.
Congrats — you’re now a homeowner! Enjoy the benefits of your assumed mortgage or VA-assumable mortgage with the lowest interest rate and monthly payment for your current market. (Let us know if your family or friends need help too!)
Assumable Home Loan Education
FAQs Home Buyers Need To Know
What are the eligibility criteria for assuming a mortgage?
While eligibility can always change or vary depending on your specific terms, you’ll most likely have to provide information related to your credit score, income, employment history, and debt-to-income ratios. You’ll need approval from the lender holding the assumable mortgage, along with signing an assumption agreement with whoever is selling the home you want.
Have Assumption Solutions on your side to ensure you comply with the existing mortgage terms and conditions. You’ll have someone on your side to explain the details of your eligibility criteria to avoid confusion.
Is there a fee associated with assuming a mortgage?
The short answer is: Yes. There will be fees associated with assuming a mortgage that will look different for every individual home buyer. You’ll need to look at your mortgage’s specific terms, the lender’s policies, and what state or local regulations could impact your purchase.
Assumption Solutions will make it easier for you to understand how much fees will be and why they’re necessary. Once your mortgage loan assumption is approved, closing will begin.
How can Assumption Solutions assist me in navigating this process?
Don’t go through this alone! With our expert guidance and advice, you can move into your dream home faster and with more confidence. Assumption Solutions will help you determine eligibility, what assumable mortgages are available, negotiation assistance, and coordination with real estate agents, attorneys, and lenders for a streamlined process free from issues. We’ll go over potential risks throughout your transaction. We’ll work with you to ensure your smooth transition into home ownership via a mortgage assumption.
Do you only do assumable mortgages for home buyers in certain states?
No — we proudly serve all 50 states! No matter if you’re in Colorado Springs, New York City, or Columbus, Assumption Solutions can help you navigate the process of a mortgage assumption with the existing servicer.