What kind of fees and conditions should I expect with a mortgage assumption (take over)?
I was discussing mortgage assumption with a friend, (a term I hadn’t heard of before), and was told that if I am seriously ready to look at a first home that I should take over someone’s mortgage rather than begin one of my one, as I would not have to pay any kind of a down payment or anything else outside of some closing fees for a few hundred dollars. Is this true?
Tags: assume mortgage, mortage loan assumption, mortgage assumption, mortgage assumption agreement
November 28th, 2009 at 9:35 pm
FHA mortgage can be “assumed” for $500, BUT you have to qualify with credit/paystubs/W-2s/assets.
Also, you might have an obligation to the seller (their equity) to payoff, and you will have some modest title fees (new title policy, notary, etc ~$1000 depending on the loan amount).
“Assumptions” today are not as they were 15+ years ago, but they are still available as an option.
Best of luck!
November 28th, 2009 at 10:32 pm
It depends on the bank. If you are assuming a mortgage, you will have to qualify for that loan program. If the person is a family member, you can do what is called a ‘quit claim deed’. This is where you ultimately do the same thing for little or no consideration. If this doesn’t work out for you there are programs for 1st time home buyers that will allow you to get into a home with a temporary program. Besides all of that, what you will be doing is getting into a mortgage, wether you buy it or assume it. You might be able to find a better program elsewhere. I would be happy to look for you and help you make an educated decision before you get into something you cant get out of. If you would like more info on the subject you can email me at oswaldmortgage@yahoo.com