Subject-To vs Assumable Mortgages: Key Differences
Monday, June 15
# Subject-To vs Assumable Mortgages: Key Differences **An assumable mortgage is a fully lender-approved transfer of a loan into the buyer's name . legal, documented, and supported by FHA, VA, and USDA loan terms. A subject-to transaction means taking over payments while the loan stays in the sell...
VA Loan Assumption vs. IRRRL: Which One Actually Saves You More Money?
Sunday, June 14
If you're a veteran sitting on a 6.5% VA loan right now, you've probably gotten at least three mailers about the VA IRRRL, the Interest Rate Reduction Refinance Loan. Rates have dropped, lenders are marketing hard, and the promise is a lower monthly payment with minimal paperwork. But there's a ...
What Happens to the Seller's VA Entitlement After an Assumption
Sunday, June 14
This is the question that makes veteran sellers hesitate. What happens to their VA loan benefit when someone assumes their mortgage? The answer depends on one thing: is the person assuming the loan also a veteran who substitutes their own entitlement? Scenario 1: Veteran Buyer Substitutes Entitl...
Can Non-Veterans Assume VA Loans? Yes. Here's How.
Saturday, June 13
# Can Non-Veterans Assume VA Loans? Yes. Here's How. Yes. Non-veterans can assume VA loans. Full stop. This is probably the most commonly asked question I get, and the answer surprises almost everyone. There's no requirement that the person assuming a VA loan has military service. A civilian buye...
What Happens If You Can't Qualify for the Assumption
Saturday, June 13
# What Happens If You Can't Qualify for the Assumption Sometimes the servicer says no. Your credit isn't high enough, your DTI is too tight, or something else in your financial profile doesn't pass underwriting. It's frustrating, but it's not the end of the road. ## Common Reasons for Denial **Cr...
Renting vs Buying With an Assumable Mortgage
Friday, June 12
At today's 7% rates, renting is often cheaper than buying. But an assumable mortgage at 2.5% completely changes the math. Let me show you. The Standard Rent vs. Buy Math (at 7%) Take a $400,000 home at 7%: Monthly mortgage (P&I): $2,661Property taxes: ~$350/monthInsurance: ~$150/monthMaintena...