Is there a way to search homes where I'd be taking over mortage loan from owner who needs to get out of it?

Asked by Jill Smith, Los Angeles, CA Mon Jan 19, 2009

Moreover, I've seen some homes where it seems I'd simply be taking over the loan from someone who can't continue to pay their mortage...and I'd then not need the down payment...? I would like to stop renting an apartment, I'm paying more than a lot of mortage payments out there for it, but I've been continuing b/c, in part, I've had difficulty with coming up with a 20% down payment-would like to only search properties like this. Is that possible? I've heard that in some instances, it works out well for the current owner, as, were they to sell, they'd lose more than if they could just pass their mortage loan over to someone new, b/c of the plummeting sale prices of homes. Please inform! Thanks!

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Steven Ornel…, Agent, Fremont, CA
Mon Jan 19, 2009
Jill, let a professional investigate your ability to buy. contact a mortgage broker and get pre-approved. As far as buying, this is your first step (not a pre-qualification, see:. for the difference between the two) so you can be ready to act when you need to, or be aware of any issues that may prevent you from buying when you want to.

FHA is the best deal in town right now. The 3.5% minimum down payment provides you many options not available with other programs out there. FHA also allows you an extra $8K in loan (that does not affect your debt-to-income ratio), provided it’s used for energy efficient upgrades on the house you buy.

Best, -Steve
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Dallas Texas, Agent, Dallas, TN
Mon Jan 19, 2009
It sounds as though you taking about assuming a mortgage from property owner , lenders wont all that happen. You need to be approved for a loan purchase a property, have title transferred in your name. Are you sure require 20% dowpayment speak with loan officer can vary from 3.5% up to 20%
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