Assumable Loan

2 Replies

I found a guy that has an assumable loan.  We called the bank together and he discovered the assumer would have to use the house as a primary residence.  

Are there some similar alternatives so that I could take this house off of his hands without an outside investor or money from my pocket?

Thanks, 
Aaron

Assumption of a loan is a stand alone idea.  Since there is only one existing loan and the assumption privilege is at the discretion of the Mortgagee, there is no competing product for assuming loans.  If that is what you are asking.

If you choose to assume the loan, you are agreeing to use the property as a primary residence.  If you can not do that, then don't bother pursuing the assumption.  You will have to purchase the home.

If you do want to assume the loan, that process can be a little more affordable than getting a purchase money loan.  The lender will charge a fee and underwrite you to see if you qualify for the existing loan.  If you do, they will arrange the assumption.  If you don't...well you can probably guess.

If that is not what you are asking, feel free to clarify.

Originally posted by @Dion DePaoli :

Assumption of a loan is a stand alone idea.  Since there is only one existing loan and the assumption privilege is at the discretion of the Mortgagee, there is no competing product for assuming loans.  If that is what you are asking.

If you choose to assume the loan, you are agreeing to use the property as a primary residence.  If you can not do that, then don't bother pursuing the assumption.  You will have to purchase the home.

If you do want to assume the loan, that process can be a little more affordable than getting a purchase money loan.  The lender will charge a fee and underwrite you to see if you qualify for the existing loan.  If you do, they will arrange the assumption.  If you don't...well you can probably guess.

If that is not what you are asking, feel free to clarify.

 Thank you for taking the time for that Dion.  That answers my question.