Where Can I Find Freely-Assumable Mortgage Loans?
There are a number of older loan programs — very much older loan programs — which feature freely assumable mortgages — loans for which financial qualifications are not required for replacement borrowers.
Look for FHA loans originated prior to December 15, 1989 for owner-occupant purchasers. With VA mortgages, search for loans made before March 1, 1988.
The value of such older loans today is likely to be just about zero. Why? Because home values have increased enormously and loan balances have been paid down, meaning to assume such financing buyers will need either a lot of cash, a big second lien or both to acquire a house and keep the original loan in place. Realistically, it’s hard to see a case where these loans make any sense today.
For details, please speak with lenders and brokers.
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