Posted by Chireen on August 22, 2003 at 02:00:12:
If it is a home loan, it is an FHA loan (HUD insures FHA loans). You can go to their website for more info: www.hud.gov
HUD does not “guarantee” loans, they insure them. The insurance “insures” the Lender against a loss if there is a default.
FHA loans are assumable if you qualify. I think they stopped doing non-qualifying assumables in 1989, but don’t quote me on that.
I’ve never heard of a 1% interest rate on an FHA loan. That interest rate doesn’t sound right.
Are you wanting to assume the loan and purchase his house? If so, the steps to take are for you and him to contact his current lender and initiate the loan assumption process and see if you qualify (income and credit). The Lender can provide you with all the details on the loan such as interest rate, length of term, etc.
Hope that helps.
Thanks,
Chireen
“My 2 cents worth…and priced just right!”