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Trulia Atlan…, Home Buyer in Atlanta, GA

Are FHA loans assumable?

Asked by Trulia Atlanta, Atlanta, GA Fri Mar 22, 2013

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Thomas Young’s answer
Purchase new home or renovate your old one with 203k loan.
From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
0 votes Thank Flag Link Sat Jun 15, 2013
The best thing to do is to Contact the bank who is currently servicing your loan just to make sure that they don't have some individual Bank Overlay that they consider to overide Fannie Mae Rules regarding FHA Assumeability. You should be able to allow someone to assume your loan, but the bank servicing may hold higher standards than your buyer can meet, increased scores, reserves, ect... Rates being where they are at there may be no benefit to the buyer just going out and getting their own financing. especially if you are trying to sell for more than you currently owe(they would be resposible for the difference having to bring the entire diffence to the table vs. just bringing a 3.5% down payment.

example you owe 90k selling for 100k they bring 10,000.00

Example 2: they just buy it for 100k and bring 3,500.00

in the past and probably not too far in the future assumeability is a great selling tool.
if the going rates are 6-8% as they were a few years back for you to sell someone your 3.5% FHA loan makes your home a great deal for someone who might never be able to find a rate as low as what you can offer.

I hope this is helpful. If you should have additional questions please feel free to call.

Best Wishes,

Rob Robbins
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339
Office 678-578-7613
Cell 404-932-5353
rrobbins@cmghl.com
0 votes Thank Flag Link Thu Apr 4, 2013
KEEP IN MIND WITH THE ASSUMPTION THAT YOU WILL NEED TO HAVE RESOURCES (CASH, 2ND MORTGAGE ETC)TO PAY THE DIFFERENCE BETWEEN THE SALES PRICE AND THE LOAN AMOUNT IF THERE IS ANY
0 votes Thank Flag Link Mon Mar 25, 2013
Yes. You can assume an existing FHA-insured loan, or, if you are the one deciding to sell, allow a buyer to assume yours. Assuming a loan can be very beneficial, since the process is streamlined and less expensive compared to that for a new loan. Also, assuming a loan can often result in a lower interest rate. The application process consists basically of a credit check and no property appraisal is required. And you must demonstrate that you have enough income to support the mortgage loan.

Warm regards,
Kim Jones
Senior Mortgage Banker
Fidelity Bank
3490 Piedmont Road, Suite 750
Atlanta, GA 30305
CELL/TEXT: 678.468.4046
eFAX: 678-829-0612
CLICK TO Apply Here!
EMAIL: kim.jones@lionbank.com
FIND ME ON FACEBOOK: http://www.facebook.com/KimJonesHomeLoans
FIND ME ON LINKEDIN: http://www.linkedin.com/pub/kim-jones/a/a68/109
NMLS# 545217
0 votes Thank Flag Link Fri Mar 22, 2013
Many loan types have clauses that prohibit loan assumption, but mortgages insured by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) continue to be assumable.

According to the Department of Housing and Urban Development (HUD) guidelines for FHA-insured mortgages, all FHA loans are assumable. Any loans originated before Dec. 1, 1986, are freely assumable, which means there are no restrictions on the assumption. Mortgages from 1986 through Dec. 14, 1989, are freely assumable as well because of congressional action in 1989 that voided the closing document language of loans from that period.

FHA loans originated on or after Dec. 15, 1989, are assumable only by borrowers who can demonstrate creditworthiness. This means the new owner must go through the same approval process he would go through for a new FHA mortgage. Investors cannot assume an FHA mortgage originated after this date under any circumstances.

Good luck!
0 votes Thank Flag Link Fri Mar 22, 2013
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