Re: Is this a realistic option?
05-25-2012 06:24 AM
Great! So if my mother is going to her local bank for the mortgage should she ask the LO if the loan is assumable at that point? Is it common for loans to not be assumable? Or are most loans assumable? I have no doubt that she wouldn't be able to qualify. Between her and my father their retirement income is well over six figures, their credit scores are fantastic and their own home is paid for.
Not sure if it matters or not but I would be looking to assume the mortgage by the end of the year.
My (limited) understanding is that most conventional loans are not assumable. FHA loans are assumable. I don't know about other loan programs.
I don't think it would be odd for your mother to ask the LO. Having a mortgage that is assumable can be a selling point, so it would be natural for her to want to know whether that is an option for when she wants to sell the house.
Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13), TU 98 728 (01/06/12), TU 04 728 (lender pull) (01/12/12), EX 742 (lender pull) (01/12/12)
Goal Score: 720
Take the FICO Fitness Challenge