Assuming FHA Mortgage?

[Gregory J.]

I have a rental property (located in southern Illinois, St. Louis Metro East) which was originally my primary residence with an FHA mortgage at 3.25% fixed 30 year. I'm planning on selling it in two years and if mortgage rates keep going up as I expect, they will be quite a bit higher than 3.25. I have read that FHA loans are assumable as long as the buyer qualifies just like a normal borrower.

As one of my fine state's imprisoned governor's famously said, "I've got this thing and its F*** golden and I'm not just giving it up for F*** nothing"

When I sell it I would like to offer assuming the mortgage to buyers as it seems like a win-win. I'm hoping I could get a small price premium or at least sell it faster while they would get lower closing costs and a cheaper mortgage. 99% sure It will be a retail sale to an owner occupant. I'm wondering what experience folks have with assuming an FHA mortgage and would buyers see the value in this or would it seem strange or scare them off? The house is worth $265k and the principal on the mortgage will be about $190k when I sell (71.7% LTV) questions I'm considering are:

chances I could get a small price premium?

Would the buyers see the value?

unique risks to doing this?

Whats the best way to educate buyers about the benefits? I'm thinking flyers at an open house and make sure my realtor understands. I could also provide sample numbers showing what it is worth in monthly payment and over time.

What would the buyer's options be if they couldn't or didn't want to make a down payment of asking price minus existing mortgage? 2nd mortgage at purchase? Me providing owner financing of some portion of the difference?

[Wayne Brooks]

Don’t expect a premium.....very few buyers will want/be able to put down $75k.