Assumed Mortgages??? Has anyone ever does this? Do you know of a lender that is still allowing this?

it was pretty common in the past, now it is very hard to find a lender who is still doing it. Some private investors however might agree to it. Best is to deal with it on a case by case if you find a property you like.Assumed Mortgages??? Has anyone ever does this? Do you know of a lender that is still allowing this?
There are lenders that do this but, in this economy, why would you want to?





Typically, most houses are upside down financially. This means people owe more on the house than it is worth. If you assume the mortgage on this type of house, then you're paying too much for the house.





The only reason why a person would want to assume a mortgage is because interest rates are really high at the time they want to buy the home and they can't qualify under the higher rate.





Rates are historically low right now which means you're probably getting screwed on the purchase price if you assume the loan.Assumed Mortgages??? Has anyone ever does this? Do you know of a lender that is still allowing this?
It is not too hard to do. The buyer has to fill out the exact same paperwork that the seller filled out when she first got the loan. When the qualifying process is finished, the buyer is substituted into the loan in place of the seller.


Since today's interest rate is lower than any previous rate, you would be assuming a worse loan. The only time you would do this is if you could assume the loan with no money down. But that would be part of the ';qualifying'; process; that you would have to put 5% or 10% down payment..