i have an assumable loan. does the buyer have to have a down payment? are there closing costs?

Asked by Mike, 18504 Wed Mar 2, 2011

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Phil Godlews…, Agent, Old Forge, PA
Wed Mar 2, 2011
Totally depends on the lender and their rules/regulations. In a few cases I've seen in the past, closing costs were charged to the new buyer. I've also seen cases where there were no closing costs. Give your lender a call and ask the same question you asked here. They'll fill you in. -phil
1 vote
Rick Molner, Agent, Limerick, PA
Mon Nov 19, 2012
Most assumable loans do not need a deposit however closing costs are going to apply. I can further help you answer than question if you can supply me with a little more info. Rick Molner @ Weichert Realtors - Molner Group - 570-383-3800
0 votes
Fran Francis, , Scranton, PA
Sat Mar 5, 2011
Yes you will need to put deposit down and there is always closing costs.

0 votes
, ,
Wed Mar 2, 2011
Hello MIke,

Different lenders have different qualifying standards for an assumable loan. An FHA is different than a portfolio loan. You must call the lender to see what are the qualifying standards for the assumption. A down payment may or may not be required depending on the circumstances. For FHA expect about $700 in fees and the buyer should absolutely want to get title insurance. It is my thought (although I am not 100% sure that the lender wants to see the buyer have some skin in the game.

Best Regards,
Alan Openshaw
Cornerstone Lending Inc
720 Second St Pike Suite 104
Southampton Pa 18966
Office 215 953 0800
Fax 215 953 1706
Cell 267 992 7276
Voted Best of Bucks 2010
0 votes
Gerard Dunn, Agent, Chevy Chase, MD
Wed Mar 2, 2011
Generally the buyer assuming the loan DOES NOT NEED A DOWN PAYMENT to be approved.

The cash they will need is for closing costs - which can be paid by the seller and the difference between the existing loan balance and the sales price.

Any deposit left with the contract (EMD) can be refunded at settlement if the home was sold at the LOAN BALANCE price.

Good Luck !

Gerry Dunn
Associate Broker
Serving Maryland, D.C. and Northern Virginia
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Mar 2, 2011
Mike you should check with your lender what their requirements are, in most cases the buyer does have to get approved through your current lender, there will be closing costs and then depending if you have any equity you want to be paid for is how much the buyer should put down. a good listing agnet experienced in assumables can easily guide you.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Laura Feghali, Agent, Stamford, CT
Wed Mar 2, 2011
Hello Mike,
Lucky you having an assumable loan to offer the buyer. I suggest checking with your lender to determine what their stipulations are concerning down payments and closing costs by the buyer as this could be a very good selling tool for you in getting your home sold as there aren't a lot of assumable loans around anymore.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes
allan erps,A…, Agent, Pearl River, NY
Wed Mar 2, 2011
Not sure your Buyer needs a down payment or earnest money. Would consult your Attorney for that legal advice. Just my opinion that YES I would personally rather see a Down Payment to be put into escrow as it makes for a more comfortable transaction. Best of Luck!
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