Tuesday, September 26, 2023 / by Tim Elder
Here are key points to know about assumable loans:
Assumption Agreement: To assume a mortgage, the buyer and seller typically enter into an assumption agreement. This agreement outlines the terms and conditions of the assumption, including the buyer's responsibilities for the existing mortgage.
Types of Assumable Loans: Not all mortgages are assumable. The most common types of assumable loans are FHA (Federal Housing Administration) and VA (Department of Veterans Affairs) loans. Conventional mortgages are typically not assumable without lender approval.
Advantages for Buyers:
· Potentially Lower Interest Rate: If the existing mortg ...