Why Consider an Assumable Loan?

 Current interest rates are hovering somewhere around 7%. By assuming an existing loan, you may be able to find a rate closer to 3-3.5%! This can significantly reduce your monthly payments and overall interest paid over the life of the loan. 

So what is the catch? 

  1. Owner-Occupant Requirement: Most assumable loans are government-backed FHA or VA loans that require the buyer to be an owner-occupant. Unfortunately, this means investors are not eligible in most cases.
  2. Significant Down Payment: You’ll need to cover the difference between the home’s purchase price and the existing loan balance. This typically requires a down payment of at least $75,000 to $100,000 or much more if the home has been owned for many…

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