Assuming a loan

[Dominic Wentz]

My question is how to step by step assume a loan. Example my mother wants to move but has not been able to sell her house and has offered me the house. my credit is poor. I can rent the house out for more than her current house payment. I have herd of assuming a loan but I Don't know where to even begin. 

[Tyler Mills]

Originally posted by @Rex Kyle:

Banks stopped giving assumable loans in the 80's  though the real answer to your question is actually in the note.  It will talk about assumption.  But what that really means is your moms name comes off and yours comes on.  you have to qualify at current standards even if the loan was assumable, so since u have poor credit that's simply not possible.  What IS possible is managing the property or having your mother owner finance it to you, however in both of those scenarios her name would stay on the loan.

This isn't really the case. All FHA, VA, and USDA loans are assumable in the US, by law. The assumability of a loan is determined by the inclusion, or lack there of, of a due-on-sale clause, but this just give the lender the option to call the loan due on sale, it is not required. Even with conventional loans where a due-on-sale clause is included there are specific scenarios where these loans can be assumed.