What's the difference between "subject to" and "assumptions"
I've heard about both but is there a difference at all?
An assumption is that you are "assuming" the financial responsibility of the loan. I am located in San Antonio, Texas and if you are assuming a loan it usually means that you are getting bank approval and the loan will appear on your credit.
With a sub-to, you are not assuming the financial obligation of the loan you are taking the deed to the house "subject to" the existing mortgage. meaning it will say on the previous owner's credit.
Basically, assumptions need bank approval and will appear on your credit and a sub-to requires no approval and won't appear on your credit.
Hope that was what you were looking for.
Thanks for the help there.
That's pretty much what I thought.
This post has been removed.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing