Posted by JPiper on March 26, 2000 at 11:14:27:
She gave you bad info. I promise. They do it all the time.
JPiper
assumable mortgages… - Posted by john
Posted by john on March 24, 2000 at 17:39:00:
who do i contact to see what is available? do i simply call all banks and mortgage companies or ? and what do i specifically ask ?
thank you in advance,
john
Re: assumable mortgages… - Posted by William Bronchick
Posted by William Bronchick on March 24, 2000 at 19:55:43:
FHA insured mortgages originated pre-1989 and VA guaranteed mortgages pre-1988 are generally “freely assumable,” that is the mortgages securing the loan contain no “due-on-sale” restriction. Those are few and far between these days.
There are many creative techniques for “creating” an assumable loan, for example my article on this site called “Dealing with the Due on Sale” and my upcoming Vegas workshop (see banner above).
Re: assumable mortgages… - Posted by Vic
Posted by Vic on March 26, 2000 at 08:27:28:
Piper,
I could be mistaken, but arent VA loans still assumable without qualifying as long as the original lender still has his name on the mortgage? I could have gotten some wrong info. from a lender (imagine that), but I’m pretty sure the last time I asked that’s what they told me. But you could be right.
I’m gonna have to ask a lender now, cuz my curiosity is high. lol
Vic
Re: assumable mortgages… - Posted by Bill Taylor
Posted by Bill Taylor on March 25, 2000 at 05:14:05:
Bill are you saying that FHA are no longer assumable after the loans orig. after 1989. I have an individual who obtained one a couple of yrs ago and just wants to sell me his house for what he owes on it, can I assume it. It did not originate until about 1998.
Re: assumable mortgages… - Posted by Dave T
Posted by Dave T on March 25, 2000 at 09:30:19:
Let me add to what Phil said. FHA loans originated after 1989 can be assumed by a qualified buyer. There are restrictions however. The buyer must be an owner-occupant, and the buyer must be approved by the lender (that is, the buyer must meet the lender’s credit-worthiness standard).
Re: assumable mortgages… - Posted by phil fernandez
Posted by phil fernandez on March 25, 2000 at 07:24:38:
Hi Bill,
I think what Bronchick is saying is that we can make post 1988 VA and post 1989 FHA loans assumable through wraps, contracts for deed and land contracts by taking the houses subject to the existing financing and having the seller deed the house into a land trust and sell us the beneficial interest thus getting around the DOS.
Re: assumable mortgages… - Posted by Vic
Posted by Vic on March 26, 2000 at 05:57:12:
FHA mortgages are still assumable, but you have to qualify. VA can be assumed without qualifying, but the veteran you buy the home from cannot use his VA certificate (at least for the amount of the loan)& will still be liable for the loan until after the mortgage has been released. In other words, the veteran will only be able to get another VA loan only after his current VA loan is no longer tied up with this particular sale.
Vic
Re: assumable mortgages… - Posted by JPiper
Posted by JPiper on March 26, 2000 at 06:36:18:
VA loans can be assumed, but qualifying is required for VA loans originated after March, 1988. You may buy/sell with a contract for deed without triggering the DOS clause on VA loans (this would not require “qualification” although generally it would not be referred to as “assumption” either).
You may have VA loans up to your eligibility, provided you qualify based on income and other requirements.
JPiper
Re: assumable mortgages… - Posted by Vic
Posted by Vic on March 26, 2000 at 08:49:15:
Piper,
Sorry I typed my other response out of order somehow. Anyway, the last time I checked with a lender, she told me all VA loans were assumable, without qualifying, so long as the original owner’s name was still on the mortgage. Now it’s possible she gave me some bad info. I don’t know, but I’m curious now. Gonna have to check around & see if she told me wrong.
Thanks for pointing it out though.
Vic