Assumable Loans for investors

Argyle, TX · Member since 2013 · 76 posts · 20 votes

What is the best approach for making offers on Assumable Loans? Can an investor purchase a property with an assumable loan if they don't plan on owner occupying the SFR?

What about VA assumable loans? If the potential buyer is not a veteran, is the VA assumable loan no longer an option?

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Elias HalvorsonBusiness Member
HI · Member since 2024 · 225 posts · 130 votes
9mo
Hey Carlos, technically, no - you're supposed to live in the property ie primary residence. For VA loans, unless the veteran is extremely desperate, or you are offering over asking price then you will be hard up to find a veteran who will let you assume his/her loan. That is one of the greatest benefits we, as veterans, have from our service. I specialize in VA loans and the only times I see veterans even consider letting a non-veteran assume their loan is 1) they are desperate to unload the property for whatever reason 2) Because the purchaser who wants to assume is offering some sort of financial incentives to allow them to take over the loan at the low interest rate.
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- Mike GrudzienPro Member
  Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
  9mo
  Quote from @Elias Halvorson:
  
  Hey Carlos, technically, no - you're supposed to live in the property ie primary residence. For VA loans, unless the veteran is extremely desperate, or you are offering over asking price then you will be hard up to find a veteran who will let you assume his/her loan. That is one of the greatest benefits we, as veterans, have from our service. I specialize in VA loans and the only times I see veterans even consider letting a non-veteran assume their loan is 1) they are desperate to unload the property for whatever reason 2) Because the purchaser who wants to assume is offering some sort of financial incentives to allow them to take over the loan at the low interest rate.
  
  Right to the point. I concur.
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Diego AlvaradoBusiness Member
Real Estate Agent · Flower Mound, TX · Member since 2016 · 294 posts · 139 votes
9mo
Hi @Carlos Silva
FHA and VA are going to be tricky to get assumed and most likely reject your application if you don't move to the property.
A could be an option if there is a balance lower than 80% of the value. However you depend on loan approval too which is tricky on most cases.
As an investor, you could do a subject to, it is not something that the seller would like to do though but depending on the situation to avoid foreclosure could be a solution.
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