Assuming low-interest loans from sellers -- how to do so as an investor?

[Brian Estes]

Does anyone have insight into how an investor can assume a seller's existing low-interest loan? Or is that only allowed for first-time home buyers and/or non-investors? With interest rates so high, I'm looking for creative ways to secure low-interest financing as an investor.

Thanks,

Brian

[Caroline Gerardo]

Full documentation.

1.Purchase contract, your new fire insurance declarations page, and preliminary title report.  

2.Past two years IRS returns 2022 2023 the net income after expenses, with paychecks past 30 days or profit and or loss 2024 year to date

3. your bank statements for 2 months showing you have the down payment in your name, 

4. ID, lease agreement with deposit at closing

After you send these to the servicer, they have the trustee review, wait 60-90 days and update your bank statement/paycheck/profit and or loss, provide estimate settlement sheet, and anything they ask for. Then be notarized and wire the funds, they don't table fund even in those states...

Seller cannot be late in past 12 months or in default or in a modification or any other troubled asset review department like bankruptcy.

FHA's are mostly assumable, VA is but VERY tricky as it isn't good for the veteran - they lose a percentage of eligibility.

Servicers do not have loan officers to help you, they don't get paid on assumptions. The buyer has to be super organized and have similar qualification to what was needed when the loan closed. IE: you need a good FICO/income to pay all your current bills with debt to income ratios 36/40. Since you are buying as an investment you will need a lease at closing, so it has to be inhabitable. NO special credits to seller outside of escrow, some make you sign agreements that you are not related and are not renting back to the seller.