One avenue homeowners can take when selling their home is to get a buyer to take on their mortgage. This act of assuming a homeowner's loan is fittingly called an assumable mortgage.
If the lender which supplied the original homeowner with their loan is agreeable to a buyer assuming that loan, the purchase can be approved. Lenders generally require a credit review of the new borrower, and may charge a fee for the assumption.
An assumable mortgage can help you attract buyers if you sell your home, especially if the interest rate on the assumable mortgage is less than current interest rates.
If you want to sell your home with an assumable mortgage, you need to make sure you obtain an assumable loan when you obtain your home loan originally. Your home mortgage is either assumable or it is non-assumable. Assumable loans have traditionally been available from the FHA or VA. If you're unsure whether your loan is assumable, you can contact your mortgage servicer.
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