Getting a second mortgage on an assumable loan to cover the equity portion

Austin, TX · Member since 2023 · 2 posts · 1 vote

We are looking to buy a primary home that's on a FHA loan that can be assumed(we have called the lender to make sure we can assume the loan). However, The seller has a high equity build up into the property of about 300k. So if we were to assume the loan, we need to take a second mortgage to cover the equity portion of the loan. I am trying to find lenders who can do this as not all lenders are willing to do a second mortgage. if anyone has successfully obtained a second mortgage. Let me know. Thanks in advance!

0 Reply

27 views

3 Replies

Jump to latestLatest

Sort by

Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
1y
Most primary residence lenders are not going to lend in second position for a purchase. Why don't you just finance it normally? I understand the rate is competitive on the assumable, but having $300k liquid, you might as well do a lower downpayment and Buy down the rate.
[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
Website View Page
0 Reply
Joseph A GonzalesPro Member
Lender · Denver, CO · Member since 2019 · 104 posts · 70 votes
1y
Where are you located? I know lenders will do a second and the second will be assumable. I have completed this for many when they assume a mortgage.
[email protected]754-201-6253
0 Reply
Trevor Finn
Real Estate Consultant · Columbia, MD · Member since 2017 · 160 posts · 55 votes
1y
@Shwetha Pindikuri,

Assuming an FHA loan with a second mortgage can be tricky, but it's definitely doable with the right lender. You might want to check with local credit unions or community banks, as they’re often more flexible with second mortgages.
Another option is to explore private lenders or HELOCs to cover the equity. Have you looked into these?
Good luck—it sounds like a great opportunity!

0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.