How do I find homes on the market that have assumable mortgages?

Asked by Pkpk, Atlanta, GA Wed Jan 7, 2009

ATLANTA, GA
I would like to start looking for a home in the Atlanta area next month. I am interested in a property that has an assumable mortgage requiring 10k or less in order to assume it. How do I find homes that meet this criteria? Is it likely that I could find an assumable loan that I can assume for 10k or less?

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25
Michael Hamm…, Agent, Suwanee, GA
Sat Feb 13, 2010
"Not one of you have answered this question. You are so busy pimping your business interests that this question remains unanswered.

The question: HOW DO I FIND HOMES ON THE MARKET THAT HAVE ASSUMABLE MORTGAGES?

She didn't ask how many are available. She didn't ask for your phone number. She didn't ask for other options. She asked a simple question and not one of you fools answered it.

Is this how you do business? Not listening to the client? No wonder people hate real estate agents and mortgage brokers. You're all either stupid, deaf or self-centered."

Gee, Ld, hope I get to Heaven before you get on the jury or the bench. Hate to bust your chops here, but on the third thread Joshua answered the first question by essentially saying that Pkpk can hire a Realtor who knows how to navigate our MLS for what she is seeking. And several answered her last question, including some sellers who gave their details. Where did you learn to read? Or has the Frisco haze caused some sort of medulla oblongata dyslexia? Good luck with that, iykwim.
5 votes
zumption.com - searches all assumable mortgages
Flag Tue Sep 16, 2014
Ritajains, Home Buyer, Tucson, AZ
Mon May 11, 2015
> Assumable Mortgage:

An assumable mortgage is one that a buyer of a home can take over from the seller – often with lender approval – usually with little to no change in terms, especially interest rate. The buyer agrees to make all future payments on the loan as if they took out the original loan.

> Advantages:

There are advantages for both the buyer and the seller when processing an assumable mortgage, especially if the seller's mortgage interest rate is much lower than the current market rates, or is lower than the rate the buyer might be able to get based on credit history.

If current market rates are at, say, 6 percent, but the buyer can assume the mortgage at a 4 percent rate, the buyer has immediate savings.

> Disadvantages:

A buyer who assumes a mortgage may have to take out a second mortgage, or come to the table with a hefty amount of cash, if the value of the home is greater than the mortgage that remains on the home.

For example, if the home is selling for $250,000 with a remaining mortgage of $100,000, then the buyer will need to come up with $150,000 to make up the difference. The buyer can do this by paying the rest in cash or take out a loan for the difference.

Reference Link:http://valoanguidelines.org/
4 votes
WTF????? ANSWER THE QUESTION!!!!! How do I find homes that meet this criteria? Is it likely that I could find an assumable loan that I can assume for 10k or less?
Flag Thu Apr 27, 2017
Wilimagima, Home Buyer, Fort Worth, TX
Wed Jul 22, 2015
An assumable mortgage allows a buyer to assume the rate, repayment period, current principal balance and other terms of the seller's existing mortgage rather than obtain a brand-new mortgage.

In theory, any type of home loan could be assumable. However, only two types of typical loans have this feature: FHA loans, insured by the Federal Housing Administration, and VA loans, guaranteed by the U.S. Department of Veterans Affairs. Conventional loans typically are not assumable.

Assuming an existing mortgage can be simpler, easier and less costly for the buyer than applying for a new mortgage.

http://fhamortgageinfo.com/
3 votes
ANSWER THE QUESTION!!!!! How do I find homes that meet this criteria? Is it likely that I could find an assumable loan that I can assume for 10k or less?
Flag Thu Apr 27, 2017
ANSWER THE QUESTION!!!!! How do I find homes that meet this criteria? Is it likely that I could find an assumable loan that I can assume for 10k or less?
Flag Thu Apr 27, 2017
Carriedia, Home Buyer, San Francisco, CA
Tue May 5, 2015
>Assumable Mortgage:-

An assumable mortgage is one that a buyer of a home can take over from the seller – often with lender approval – usually with little to no change in terms, especially interest rate. The buyer agrees to make all future payments on the loan as if they took out the original loan.

> Advantages:-

There are advantages for both the buyer and the seller when processing an assumable mortgage, especially if the seller's mortgage interest rate is much lower than the current market rates, or is lower than the rate the buyer might be able to get based on credit history.

If current market rates are at, say, 6 percent, but the buyer can assume the mortgage at a 4 percent rate, the buyer has immediate savings.

> Disadvantages:-

A buyer who assumes a mortgage may have to take out a second mortgage, or come to the table with a hefty amount of cash, if the value of the home is greater than the mortgage that remains on the home.

For example, if the home is selling for $250,000 with a remaining mortgage of $100,000, then the buyer will need to come up with $150,000 to make up the difference. The buyer can do this by paying the rest in cash or take out a loan for the difference.

> VA Loan Assumption:-

Anyone can assume a VA mortgage – as long as their income and credit qualify – but children of veterans can’t get VA loans themselves (unless, of course, they join the military as well). You have to be a current service member, veteran or surviving spouse of a veteran to qualify for a VA loan.

> Here are a few of the main requirements for assuming a VA loan:

* If the person assuming the loan isn’t a veteran, then the veteran will lose their remaining entitlement benefits because the VA benefit stays with the mortgage, not the individual.

* There’s also a funding fee that must be paid: 0.5% of the existing principal balance. Either the original owner or the new mortgage holder can pay this fee.

* Once the assumer gets approved for the loan and the county receives the new deed, the current owner is released from all liability for the mortgage.

In the Q&A, Terry Howell of Military.com also noted that both the Department of Veterans Affairs and the lender have to agree to the loan assumption.
Reference Link: http://vastreamlinemortgage.net/types-of-va-home-loans/
3 votes
Joshua Jarvis, Agent, Duluth, GA
Wed Jan 7, 2009
Pkpk,

You can actually have your agent do a search for them through the MLS. However, most agents are so inept at even understanding if something is assumable and how the process would even work, that you you will only have a handful of choices

If I'm reading you correctly, you simply want a good deal on financing without the hassle of the loan process. Most assumable loans still require you to get qualified. With 10K down, you're purchase power could be up to $300,000.

Sounds like a consultation with a professional Realtor would be worthwhile. Assumable loans might be what's best for you, but my guess is that you are limiting your choices by focusing on that.

Great question!
2 votes
totally not true
Flag Tue Oct 7, 2014
That's not true. Most FHA loans are assumable and the only thing you would have to do is call the bank that hold the mortgage and they will give you the necessary terms and conditions. Most times it will be, 2 year tax returns from the buyer and proof of insurance and income. And sign a one page letter of agreement and non-responsibility for the seller. If you can find one, the process is very, very simple.
Flag Fri Dec 6, 2013
That's not true. Most FHA loans are assumable and the only thing you would have to do is call the bank that hold the mortgage and they will give you the necessary terms and conditions. Most times it will be, 2 year tax returns from the buyer and proof of insurance and income. And sign a one page letter of agreement and non-responsibility for the seller. If you can find one, the process is very, very simple.
Flag Fri Dec 6, 2013
Rick Frissell, Agent, Brandon, FL
Wed Jan 7, 2009
Hi Pkpk,

Assumable mortgages are very rare anymore. Most lenders and included a "due on sale" clause that terminates the mortgage by the current owner at time of the sale.

Should there be a home that has an assumable mortgage, it would likely be noted by the listing real estate agent. You could ask a local realtor if they can enter a search in MLS under either "financing" or "realtor comments" to find those listings.

But, I would suggest that you consider an FHA loan. FHA requires only 3.5% down payment. In this market your agent could negotiate closing costs in the offer and you could buy a nice house for $10,000 down. This would allow you to find a house that meets your "home needs" instead of finding an assumable house that might not be the house you really want or in the location that is your preference.

We have an Atlanta office and you can visit our site at http://gwinnettdwellings.com/

Rick Frissell
1 vote
1982garn-st -German law you all need to read it
Flag Tue Dec 24, 2013
That is not the truth. 1982 Gear-St=German law .read it!
Flag Tue Dec 24, 2013
Jeri Patrick, Agent, Pooler, GA
Mon May 25, 2015
I would contact a local real estate agent to help with your search. Best of luck
0 votes
dorenezeller…, Home Buyer, West Palm Beach, FL
Tue May 5, 2015
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0 votes
scott.celley, , Clinton, NJ
Thu Mar 20, 2014
The tools available at Zumption.com show exactly what down payment is required to assume a mortgage on any of the homes listed on the site, and the site allows buyers to search for homes that have assumable mortgages nationwide. Because most loans, including assumable FHA and VA loans, have been originated in the last 5 years they have high LTV's which translates into low down payments. Also, closing costs are greatly reduced when you assume a mortgage, no points and usually no appraisal unless you want one.
0 votes
Thanks. This is the answer the OP was seeking.
Flag Thu Aug 6, 2015
Doreen, Home Buyer, Washington
Sat Jul 20, 2013
Here is a website that has assumable mortgage listings all over the USA.

http://www.takelist.com/index.php
0 votes
Ellen Smith, , Alpharetta, GA
Mon Jan 21, 2013
I have 2 homes listed with assumable loans in zip code area 30014...35 miles from Atlanta, GA...EllenSells@bellsouth.net
0 votes
T. Lewis, , Minneapolis, MN
Mon Aug 1, 2011
Takelist.com is is the answer to the original question. It is National and the only yet known Assumable Mortgage Directory.
Web Reference:  http://www.takelist.com
0 votes
Mutti, Home Buyer, Nashville, TN
Fri May 21, 2010
I'm not in Atlanta or even in GA. (I'm in Nashville, TN) And I realize this thread is dated. But in case anyone else pulls it up, here's my 2 cents worth. I just closed on an FHA loan December 30th, 2009 and it is fully assumable.

MOST FHA LOANS ARE FULLY ASSUMABLE.

Yes, the seller does remain responsible for the loan amount.This caused some issues over the years with these types of transactions. As a result, some people- and a lot of real estate agents-shy away from them. But if a buyer qualifies under FHA guidelines-and this is very clear cut (See FHA website for complete information)-a waiver can be signed that absolves the seller from liability.

Right now my son and his family of six who were displaced by the flooding in Nashville are looking for an assumable FHA loan. There are few real estate agents who have even a rudimentary understanding of this type of transaction and we have been told by numbers of them that these deals no longer exist.

Further, my son does not have a credit rating. When we explain this to an agent we usually get a polite kiss off, a flip to a rent to own, or a referral to a mortgage broker who tries to get my son to build his credit over time.

Well, we don't have time and it is not possible for my son to rent with the number of kids he has and no credit rating. Nor is it in his best interest to rent.

This family is displaced. And FHA guidelines state that if you have a credit rating it must be at least 620. BUT if you have NO CREDIT RATING you can STILL qualify as long as you meet other guidelines including income. The FHA does not disqualify young or other buyers without a credit rating.

My son and his wife have a small amount to put down on a home with an FHA assumable loan and they need a home right away. If there are any real estate agents in middle TN who have an understanding of this type of transaction and are willing to search the MLS to find homes that qualify please feel free to contact us by email.
0 votes
Russ Garmon, Other Pro, Norcross, GA
Sat Feb 13, 2010
I have the answer for Ld,
You need to look at the date of when the question was asked, over a years ago.
You are a little late to the dance.
0 votes
Hannah Flieg…, Agent, Larkspur, CA
Sat Feb 13, 2010
Hi Pk,

Typically loans are not assumable, they have a due on sale clause. There are ways to get around this, through a land trust and other methods, but because of your question i might assume that you have never done this type of transaction before. It seems that you want to take over someone's mortgage and their property. This would mean that the title would go into your name and the mortgage would remain in the current borrowers name and you would take over the payments.
This may be an issue for someone who would have concern that you may not pay the mortgage and they sign over title to you. You may not feel comfortable taking on the mortgage payment without someone signing over title to you.
You have to find a property that has a good mortgage on it and there are some properties that have a good mortgage product on them.
VA loans
FHA loans
conventional loans
your issue is going to be getting around the due on sale clause you might consider taking a class or learning about how to take over a subject to deal.
I think this is why so many answered the question wrong.
Since you have $10k saved up you might be able to find a property and just buy that property with your down payment and get a new mortgage.
Finally, a subject to or assumable mortgage should not cost you anything unless you have to cure a default. Good luck!
Web Reference:  http://www.vallejorei.com
0 votes
Ld Montey, , San Francisco, CA
Sat Feb 13, 2010
Not one of you have answered this question. You are so busy pimping your business interests that this question remains unanswered.

The question: HOW DO I FIND HOMES ON THE MARKET THAT HAVE ASSUMABLE MORTGAGES?

She didn't ask how many are available. She didn't ask for your phone number. She didn't ask for other options. She asked a simple question and not one of you fools answered it.

Is this how you do business? Not listening to the client? No wonder people hate real estate agents and mortgage brokers. You're all either stupid, deaf or self-centered.
0 votes
Wwwiv, Home Seller, Atlanta, GA
Tue Oct 6, 2009
I have such a home for Sale
PRISTINE CONDITION BUNGALOW IN SOUGHT AFTER EGAN PARK - BUILT IN 2005, PERFECT FOR 1ST TIME BUYER. HDWDS, TRAVERTINE, MASTER ON MAIN, FENCED PRIVATE YARD, PATIO & FRONT PORCH, GREAT LOCATION - MIN TO WOODWARD ACADEMY/AIRPORT/DOWNTOWN.

$158,500 K bal. assumable loan PITI Payent $1119.89 per month
Call Me to discuss 678-595-2993
0 votes
Frankinatl, Home Seller, Atlanta, GA
Wed Apr 15, 2009
Find someone with a va loan and leave the agent out of the picture so you dont have to pay realitor fees. The good thing about assuming a loan is no closing costs and no realitor fees which can total 8-10% of the total loan value.
0 votes
Michael Hamm…, Agent, Suwanee, GA
Sun Apr 5, 2009
Some good answers below, but please don't forget that all VA loans are assumable as well. Good Luck!
0 votes
Brittany Sim…, , Columbus, OH
Thu Jan 22, 2009
You will need to find a home with an existing FHA loan. Those are the only ones that are assumable. You still need to be approved for the remainder of the mortgage.
0 votes
Jen and Mark…, Agent, Holmes Beach, FL
Thu Jan 22, 2009
Assumable loans are not very common now. Most loans have a due on sale clause which means the owner has to pay off the loan in order to sell the property. You would still need to quallify for the loan. Interest rates are really low and rates you can get now are typically lower than most loans you would be able to assume. If you are looking to put $10k down, there may be better options for you. Feel free to contact me.

Jen Bowman
Success Realty
404-456-5024
Web Reference:  http://www.JenBowman.com
0 votes
Joy Nichols, Home Seller, 30084
Sat Jan 17, 2009
Where are you looking. I have a home in Tucker zip code 30084. That we will consider assumable mortagage with $10,000. Not with any agent yet.
0 votes
Russ Garmon, Other Pro, Norcross, GA
Wed Jan 7, 2009
Pkpk-
I agree with Lise, Not knowing more information about your situation looking for seller financing would be my 1st choice and with $10,000 that would be very attractive to a seller right now.
Plus to assume a home with financing in place with $10,000 the loan may only be several years old there may be little or no equity in the loan.
Provide more information to someone and look to get the most bang for your buck and $10,000 is enough.
0 votes
Lise Desorme…, , Atlanta, GA
Wed Jan 7, 2009
Rick offers an excellent answer here and I love the question since it is likely there are more people out here who wonder 'Is it likely that I could find an assumable loan?'.

Another option you might consider is there are many people who do not owe money on their home. These people might be willing to provide you owner financing and this too is a great way to purchase a home. A number of these homes may be older as the owners have lived there a long time. You could purchase the home, do some home improvement and later sell the home for more money then you paid. This transaction will give you a bigger down payment in the future to buy another home where you can again turn the home for profit. Yes, there is a little inconvenience in living this way but if you consider the benefits the outcome outweighs the drawbacks.

Hope this helps!
Web Reference:  http://www.rmr-usa.com
0 votes
Hank Miller, Agent, Alpharetta, GA
Wed Jan 7, 2009
As Rick mentioned, assumable mortgages are almost non-existent in this market. While many of the garbage loans are gone, there are still programs out there that might be able to work for you. I have a few lenders that I use regularly, drop me a line and I can put you in touch with them - get your mortgage approval taken care of before you start looking for a home...many of my buyers find a home much faster than expected and opportunities vanish quickly, you need to have your ducks in a row.

Let me know if we can help you -

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276
0 votes
Try zumption.com, all the tools you need
Flag Tue Apr 29, 2014
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