Assumable FHA Loan Creative Scenario - Great investor opportunity
Hello!
Wondering what everyone's take is on the FHA assumable loan market now that it is double/almost triple what people have gotten locked into from 2015+ on. I see this as being a huge opportunity for new buyers in this market & am looking to sell my own home this way.
Example - owe $334,000 on mortgage - home current value around $500,000
Rate - 3.625% fixed
25 years of life left on loan, massively lowering amortization schedule of a new 30 year loan
In my mind there is a huge premium on a buyer/investor being able to assume with loan at half the going interest rate, 5 years off end of loan, not going through appraisal process etc. Obviously they will need to be cash heavy or have some sort of second loan to make up gap to pay me out as the Seller, but this is a massive opportunity for the right person. Only hangup would be the owner occupancy FHA clause that I can think of. Insanely good rental potential with this home. Wondering what others think & looking for someone who may be interested in this opportunity. Can share more details privately! Listing when was last active is below.
https://www.movoto.com/realest... (updated photos of renovation & most recent listing)
Is your loan really assumable (as it would be the exception)? If so, what are the lender requirements? Nice rate but ARV too high given the current rate environment.