Loan Assumption Tactics & Strategies?

[Jordan Decuir]

Apparently ~60-65% of existing homeowners’ outstanding mortgage loans carry a rate at or below 4%. With new mortgage rates averaging above 7% per the Mortgage Bankers Association, I’d think that there should be opportunity to do deals by assuming those low-rate mortgages (if an investor can find the homeowner that desires to sell).

I’m not too familiar with the process of loan assumptions, so what are their pitfalls, risks, etc…?

I understand that FHA and VA loans are assumable, so what are the best strategies to find homeowners with assumable mortgages that want to sell? And what are the best tactics to convey to them the benefits of selling and allowing the purchaser to assume their existing mortgage?

Obviously this concept is pretty new for me, so please excuse if I’m not clear or if this is just a silly post.