Assumable mortgages - Posted by Dave IN

Posted by Dave T on January 23, 2000 at 22:35:32:

It is my understanding that all VA and FHA mortgages are assumable as well as most conventional comforming loans. The assumption, however, is only permitted with lender approval for loans originated within the last 11-12 years.

Assumable mortgages - Posted by Dave IN

Posted by Dave IN on January 23, 2000 at 19:59:39:

Can someone tell me if there are any lenders that still make assumable mortgages? I read somewhere that a few lenders make assumable ARM’s and I wondered if that were really true.


Dave IN

Re: Assumable mortgages - Posted by Bill Gatten

Posted by Bill Gatten on January 24, 2000 at 12:59:28:

Most loans are “assumable” per se to some degree (even when the contract would say otherwise, they can often be restructured, streamlined, or negotiated). However, as Dave pointed out, with the exception of some VA loans and a few FHA loan types, they are largely assumable only by prior written permission and full credit approval (and payment of loan points) by the lender.

However…through the use of a 3rd party land trust conveyance (ie., PACTrust) virtually ALL loans are “assumable” without unduly comprising any lender’s due-on-sale clause or negatively affecting the integrity of the property’s title (this of course excludes bona fide Land Contract loans, as the “borrower” in a land contract is not the title holder “owner” of the property).

Bill Gatten