Updated over 7 years ago on . Most recent reply
Underwriting an Assumable Loan
I'm currently looking a multifamily deal where the seller is adamant about the buyer assuming their loan. The purchase price is $3.2m and the balance on the loan is $2m. Does anyone have experience assuming a Freddie Mac loan that can give me some insight as to how I would underwrite this into the deal? Are there any points I would Pay to assume the loan? Would I need to come up with $1.2m in Equity for the difference in this case? Would the lender allow the buyer to have supplemental loans up to 75% LTV? Any help would be greatly appreciated - the deal has me curious!