Assumable Loan (Multi-Family)

[Yusuke Koike]

Hi,

My name is Leo. I started investing in real estate last year. I have now one small condo.
I found a 2-unit multi family.

Seller has a FHA assumable loan.
*purchase at $279K in 2021
*asking for $310K
*remaining loan balance: $265K
*interest rate: 2.75%

I am not familiar with "ASSUMABLE LOAN"
I have some questions.
1) How does assumable loan work for seller and buyer?
2) Do I need to put down $45K($310K-$265K)?
3) Can I make another loan for $45K? 

Leo

[Michael Thach]

You would assume the remaining 265k with the same interest rate. You need to put down the 45k. 

You need seasoned money to put down, which means money which was in your bank account 2 months at time of closing. If you get a loan now to make this deal work, the deal is most likely gone. You also need to qualify on FHA terms. Since you already have a small condo, this would not be your first home, so I doubt that you would qualify.