Hello, I am looking to assume two properties. Owner is just done with them. I have two properties my self right now. Her loans are a VA and fha loan. What can I expect moving forward?
Hello, I am looking to assume two properties. Owner is just done with them. I have two properties my self right now. Her loans are a VA and fha loan. What can I expect moving forward?
Hi Christopher,
Two additional properties with existing VA and FHA loans sound like a great opportunity, but there are several factors to consider. Both VA and FHA loans are assumable, though the process and requirements differ. To assume a VA loan, you'll need to be eligible for VA benefits, though some lenders may allow non-veterans to assume the loan. FHA loans are generally more straightforward, with lenders typically requiring verification of your credit and income.
Be prepared to provide financial documentation, as the lender will need to ensure you can manage the additional mortgage payments. Depending on the equity in the properties, you may need to provide a down payment or negotiate terms with the current owner. Verify the interest rates and terms of the existing loans, as favorable rates can be beneficial, while higher rates might prompt you to consider refinancing later.
Assess the condition of the properties thoroughly, especially since the owner is "done with them," which might indicate deferred maintenance. Factor in the cost of property insurance and taxes, as these expenses can impact your cash flow. Given the complexities involved in assuming multiple properties with existing loans, consulting with a real estate attorney might be wise. They can help you navigate the process and protect your interests.