Loan Assumptions

3 Replies

Is there anyone who has experience with the rules regarding Loan Assumptions? I was told by Bank of America that all loan assumptions have to be occupied by an owner occupant within 12 months.  Would this mean that if I sold the house before the 12 months I would not be required to live in it? I have a deal that would work if I could assume the loan and lease option it to a buyer already in hand.  Any thoughts appreciated.

if you go through the bank to do the assumption, I see no reason why they would call the loan if you subsequently decide to lease the property.

Originally posted by @Joel Cummings:

Is there anyone who has experience with the rules regarding Loan Assumptions? I was told by Bank of America that all loan assumptions have to be occupied by an owner occupant within 12 months.  Would this mean that if I sold the house before the 12 months I would not be required to live in it? I have a deal that would work if I could assume the loan and lease option it to a buyer already in hand.  Any thoughts appreciated.

What type of loan is it? Conventional or FHA/VA?

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