How do you assume a SFR loan?

Lincoln, Nebraska
Private Lending & Conventional Mortgage Advice
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How do you assume a SFR loan?

Troy F.Pro Member
Investor · Asbury, IA · Member since 2018 · 78 posts · 29 votes

Hi there,

I have an opportunity to assume my neighbors loan.  It is a single family home. Nothing fancy. I am looking to do this transaction as soon as possible.  What steps do I take to make this happen?  His taxes and insurance are escrowed. How do I handle that as well?

Thanks,

Troy

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  • Kevin Luttrell
    Lender · Orange County, CA · Member since 2019 · 299 posts · 255 votes
    4y

    @Troy F. Most mortgage loans these days cannot be assumed. Have the seller check with his lender and see if they allow loan assumption or not. 

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  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    4y
    Quote from @Troy F.:

    Hi there,

    I have an opportunity to assume my neighbors loan.  It is a single family home. Nothing fancy. I am looking to do this transaction as soon as possible.  What steps do I take to make this happen?  His taxes and insurance are escrowed. How do I handle that as well?

    Thanks,

    Troy


     Step 0, confirm that it's an assumable loan. Very few are.

    Step 1, call their loan servicer and say you want to assume it.

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