Is there a checklist or what due diligence do I have to do when buying with an assumable loan? With the home but also the loan? Who helps mediate or represent me?
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Look at interest rate, loan maturity, PITI, what kind of loan it is. If this is for a investment property you want to stay away from assuming a note, take it over subto.
Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
3y
Most assumable loans are assumable with qualifying which means you have to qualify with your credit and income. Is essentially the same process is getting a loan from the start. You have to have a certain debt to income ratio and a certain credit score and so on. It sounds like a great loan with respect to the rate. The biggest thing you have to check is the value of the property versus the amount of the loan. In other words the loan to value. The lower the loan to value the better. I would just make sure you close with a qualified attorney or title company.