Looking at assuming a VA Mortgage

[David W.]

I am looking at assuming a mortgage. The house is not on the market but in a very good area. The owner owes 87k; they paid about 97k for the home. The home needs about 5k worth of work put into it. It has new hvac, new windows. It is a pier and beam home. They don't want to bother putting it on the market they just want to sell it. They are family friends of ours.

I am thinking of assuming the loan. I immediate get equity and I have bought the home for a discounted price.  I can put about 5k into it, to put in new flooring/carpet and a few other minor repairs. It should be rent ready in 30 days.

Not getting into cash flow discussions, but any advice on assuming loans? It seems like its a very good option. The bank did ask if this was going to be my primary residence. It will be a rental property obviously and I am waiting to hear back if they will up the interest or something like that since it is not my homestead