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blueskieslemontrees t1_iu6jfi6 wrote

Reply to comment by Kindly_Boysenberry_7 in RVA Real Estate AMA - "What The H*ll Is Happening?" Edition by Kindly_Boysenberry_7

FYI from a former lender - assumptions have to be built into the note when the loan was first taken. Most people don't think then about having assumability so its not very common. A buyer would also only be able to assume remaining balance. So that means a higher down payment to cover the difference

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Kindly_Boysenberry_7 OP t1_iu6k3xl wrote

I believe at least FHA loans now have that assumability built in. Not sure about a regular conventional. But I did forget you can only assume the balance, so you'd need to be able to bring a chunk of change to closing.

Ah, yes, I have a feeling I will be doing lots of education with lenders in the not-distant future, to re-learn all the stuff about ARMs, and assumptions, etc. It's been nothing but 30 year fixed rate deals since 2008.

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Laura37733 t1_iu7bjbe wrote

Another important part to consider - if the loan has been modified, it's no longer assumable. So many people did long covid forbearances and modified the loan to tack the balance on the end, which prevents that loan from being assumed.

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