Re: FHA assumptions - Posted by John Corey
Posted by John Corey on April 21, 2006 at 06:58:40:
You covered a lot of ground.
If you can find a fully assumable mortgage that is one test.
If the deal makes sense is another test.
Why is the credit non-existent? You do not borrow or are you gently claiming that you do not pay your bills on time?
It could be that you do qualify for a loan or that there are other ways besides an assumption to buy.
Assuming a loan (if you can find one that is fully assumable without qualification) is one tool in the toolbox. Use that tool when it makes sense for a particular situation.
If the employment picture is negative will something change in the future to turn this around? If not you might own a property that is worth less in the future than what appears to be a good deal now. If things do turn around it could be a great buying opportunity. Just find a motivated seller and drive a fair but hard bargain. You get them out of a jam and they make you a great deal. If they refuse go to the next person on the same street as plant closures impact a lot of people.