3 Things to Know about Mortgage Assumptions

✍🏼 SIDE NOTE: We currently have a listing where the Seller has a VA mortgage with a rate of 4.125%. If their Buyer were to assume their loan, they would save over $700 PER MONTH compared to the same mortgage at today’s interest rates. It is so important to partner with an Agent who understands the dynamics and pursues all avenues for success for both the Buyer and the Seller!
With higher interest rates impacting the market and affordability at a low, we are helping buyers and sellers explore creative financing options - a loan assumption could be an option to consider. Here are 3 things you should know.
#1: A loan assumption is a government mandated release of liability for a seller that allows a buyer to take over the current mortgage terms - rate, balance and remaining payments.
#2: All FHA and VA loans are assumable. No appraisal is required unless there is secondary financing. Non-Veterans can assume a VA loan including an investor, but there are some terms to understand.
#3: The assumption process typically takes 45-90 days and involves specific steps, including obtaining the lien holders approval, submitting required documentation, and possibly paying assumption fees.
Assumptions can be Win-Win! Buyers may be more inclined to purchase the property because they can assume the favorable terms of the existing mortgage which can lead to a quicker sale and possibly even a higher selling price for the Seller.
#loanassumption #mortgageassumption #vabuyer #fhabuyer #hendersonhomes #lasvegashomes #newhomeslasvegas #newhomeshenderson #lasvegasnewhomes #hendersonnewhomes #lasvegasrealtor #hendersonrealtor #hendersonhomesforsale #lasvegashomesforsale