Question:

Why buy a house on assumable mortgage properties listings?

Answer:

Assumable mortgage properties listings are a perfect place to find the most affordable home for you if you have low or no credit, income that is difficult to prove or bankruptcies. Often the homeowner will be willing to just hand their existing mortgage balance over to a new buyer especially if the loan is assumable.

Even if the loan itself is not assumable, it could be assumed. The worst case scenario to happen is if the lender finds out and wishes to invoke the due on sale clause. However, many clients are willing to take the risk of the lender finding out about the assumption as assumable mortgage properties are an excellent way to become a homeowner without the need for qualifying.

In case you found an assumable home on the properties listings, the buyer most often will need to be approved by the lender and go through the regular mortgage application process, which strips all the advantages of assuming the mortgage on the rear without the lender knowing about the assumption.

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