Assumable Loan Experiences

[Account Closed]

I'm wondering if those of you who have formally assumed a loan in the last 10 years could share your experiences. Was there an application, what was the qualifying process. If you were denied, what were the reasons given.

Technically all FHA and VA loans are assumable but I've never seen one go through. Looking forward to hearing your stories!

[Joel Owens]

I haven't assumed loans but my clients have on commercial properties I have transacted which is different than residential loans.

A key will be if the lender will release the guarantee off the former owner r will require both of you to stay on the hook. Typically a 1/2 to 1 percent assumption fee. The larger the loan the lower the fee usually.

In commercial it's different in that more emphasis is put on the property and terms and less on the borrower. The borrower still needs to meet liquidity and net worth requirements to make the lender comfortable replacing the current guarantor.