Assumable Mortgages: Any ways to do creative financing?

Question

Hey All!

I'm a first-time investor looking at purchasing my first property for a house hack! The idea of an assumable mortgage seems very attractive from a cash flow perspective, but unfeasible from a capital perspective. Typically the homes require a downpayment of over $100K to assume a sub-3% rate. This is why I haven't considered them as a realistic option for a cash-on-cash return. The appeal is pretty much just the low monthly payment.

Are there any ways to bring low money down on assumable mortgage deals to avoid paying a lump sum of $100k+? Has anyone here done an assumable mortgage? If so, how was it? Any pointers?

Any wisdom is greatly appreciated, thanks!

Ryan Thomson · Answer

Hi @Dillan Gomez I have closed 7 deals like this in the last 5 months with buyers in Colorado.

I do have a lender who will loan on the equity gap.

1. For an investor you need to put 20% of the purchase price down and they will loan the rest

2. For a primary home loan you need to put 5% of the purchase price down (10% down gets you a better rate) and they will loan the rest.

This is a great way to buy investment or primary properties!

Chad Rocke · Answer

@Dillan Gomez

Yes there is a lender that will loan 90% of the equity needed.

Call me or email me we can discuss more

Assumable Mortgages: Any ways to do creative financing?

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