Saturday, October 20, 2018
 Buying  |  Selling  |  Financing  |  Relocating  |  Homeowning  |  First-Time Buyer 

Refer A Friend

Randi F. Rainmaker
CLHMS, GRI, ABR, CCIM, ePro, EcoBroker
Gooder Group
2724 Dorr Ave, Ste 103
Fairfax, Virginia 22031

Office: 703-698-7750
E-mail Me
Visit My Website
Hottest New Listings!
Exclusively ZIP 20902
Search All Homes
Featured Properties

Improve Your Chances Of Getting The Right Loan
Six Tips For Getting The Best Loan
Put Your Home's Equity To Work With Six Savvy Strategies

Select FAQ of Interest
Everything You Need To Know About Real Estate

When is it a good idea to look for an assumption?

Key In Lock Assuming, or taking over, an existing mortgage is the key that opens the door to homeownership for many buyers. If you don't have the minimum down payment your lender requires, if your income fluctuates or does not meet the lender's debt-to-income ratio, or if your credit history is less than perfect, an assumption may be the way to go.

Many assumable loans are obtained through the Federal Housing Administration, although some older assumable mortgages from banks still exist. Assumptions generally cost less at the settlement table because fewer fees are required. FHA loans made before December 15, 1989 can also be assumed by a buyer meeting minimal credit requirements. In this case, however, the seller retains responsibility for the mortgage if the buyer defaults. If the buyer qualifies for a FHA loan originated after that date, the seller can request a "release from liability."
    Improve Your Credit Standing.
  • Often, assumable loans are older and may carry a higher interest rate, and the buyer could need a lot of cash to take one over. The seller can take back a second mortgage equal to the difference between the value of the first mortgage and the price of the home, plus a discount fee. The seller can then either collect the monthly payments, or sell the second mortgage at a discount to raise immediate cash.
  • If the interest rate on the assumable loan is higher than current market rates, the buyer has the option of establishing a good credit history and then refinancing to a lower rate.
More Help For Financing


Tip of Week

Quote of Week


Search all the homes for sale in our area.

Become a VIP buyer or seller. Beat your competition to the best properties in today's market. No cost, no obligation.
FREE Electronic Real Estate Reports:
These reports can help save you thousands, delivered free to your inbox.
MAGIC Improve Your Chances Of Getting The Right Loan
MORE FOR LESS Six Tips For Getting The Best Loan
IDLE EQUITY Put Your Home's Equity To Work With Six Savvy Strategies
MORTGAGE Insider's Guide To The Latest Home-Loan Opportunities
SHELTER Six Little-Known Ways To Help Relatives Finance a Home
QUALIFIED How Much House Can You Really Afford?
OPTIONS Ten Savvy Ways To Pay For A HomeToday
LOWER RATE Seven Smart Ways To Reduce Your Mortgage
CREDIT REPAIR How To Move From Rejection To Approval
WHY REFI Five Great Reasons To Refinance Today
Home  |  Information Center  |  Ask Us
Buying   |  Selling   |  Financing   |  Relocating   |  Homeowning   |  First-Time Buyer
Copyright 2018, Gooder Group.
Absolutely no part of this page may be reproduced or distributed without written permission.
All rights reserved by Gooder Group, Gaithersburg, MD, (703) 698-7750.