Assumable mortgage available at premium?

[Herb Lau]

How much of a premium would a borrower have to pay to be able to use an assumable mortgage to purchase a house? It might have been a great strategy at the beginning of the year when rates were lower, to allow for better marketability when borrower wanted to become seller. 

[Caroline Gerardo]

@Dave Skow FHA assumable if between 1986 and 1989 but those 30 year loans would be paid off today @Ned Carey today the borrower has to meet seller's profile: owner occupied FICO in same range FULL DOC. They also take on the 1.75% PMI forever. Maybe someone who bought FHA in 2020 with a 3% rate and were 97% loan to value BUT now because of appreciation they are 89% loan to value. Buyer owner occupied loses the ability to put minimum down payment.

VA is assumable to a veteran with same profile and FULL DOC. Seller asks buyer to assume full liability AND use their own veteran eligibility portion. So again the problem is if value increased the vet doesn't get to buy with 0 down. And likely the financing is like 90 or 95% LTV

USDA same thing owner occupied - full qualifying of the existing note

All require larger down payment but if the loan was closed 2018 -2021 you can assume rate is much lower maybe half what it is today.

All require buyer's IRS taxes past 2 years and FICO similar.

IF markets decline and values go down an assumption will be a great tool for owner occupants. Contract needs to be 45 day escrow as you will be dealing with a servicer who is not motivated to speed up.