Question:

Should I consider assumable mortgage homes for sale to become a homeowner?

Answer:

Assumable mortgage homes for sale may be an appropriate way to become a first-time homeowner. Assuming someone else's debt and property will be a good choice if their mortgage was signed when rates were low and now it is impossible for the buyer to get such rates with a new mortgage.

Assumable homes are available with and without lender's approval.

  • With approval the lender will evaluate the candidate's application for assuming the mortgage.
  • Without approval the seller will be held responsible if the buyer defaults with payment.

However, if the outstanding balance on the assumed mortgage is much less than the market price of the house, the purchaser will have to provide sufficient funds to cover the difference, or even take another mortgage. For example, if you are buying a house worth $200,000 and the outstanding mortgage balance is $120,000, you will need $80,000 cash to cover the difference between the assumed mortgage debt and the real market value.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: