Tulsa Mortgages


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Selling Your Mortgage With the Home?

Home In A Box

Your assumable mortgage may be marketable.

There are plenty of them out there.  All FHA loans are assumable if the buyer can qualify.  The VA loan is assumable if by another veteran.  Even USDA rural housing and 184 Indian Benefit loans are assumable, if the borrow and the property qualify. We are all told Conforming Mortgages are non-assumable, but in fact, Fannie Mae and Freddie Mac both allow assumptions on particular adjustable rate and “B” securitized products.

Get a cost analysis analysis

So, Why aren’t more sellers Marketing Their Assumable Mortgages? 

  • “Buyers will have to pre-qualify anyway.” – True. Since 1989 the lender and/or the appropriate agency must qualify and approve all mortgage loan assumptions.
  • “I got a lot of money in this house” – I can understand that argument.  Whatever cash the seller walks away with will have to come from the borrower’s pocket, either through down payment or secondary financing.
  • “Nobody would want my old loan anyway.” Ok, you’re rate is probably higher than what the market is offering today.

But you may not want to assume to be non-assumable.

  • If the seller’s loan is assumed, the closing process will be streamlined:  no appraisal, no inspections,
    and no repairs!
  • Save a pocket-full on closing costs!
  •  If time means money to you, the house could sell fast and close fast!

The buyer gets the existing payment schedule and all of the front-loaded interest the seller has already paid.  He will be making better principle reducing payments and could be looking at significant savings in the Total of Payments. 

A simple spreadsheet can show you the scenarios of an assumption vs. new financing for the particular situation, thereby giving the dollar value to both buyer and seller.  And knowing how the money flows allows for knowledgable decisions.

My point is this:  It may be a sledgehammer in your toolbox, but when you need it, knowledge of Assumable Mortgages could really help you get a job done.

Posted in: For Sellers

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