Are FHA Loans Assumable- Selling a Property in Harrisburg, PA

[Christine Z.]

Hey All! I value your expertise and opinions so I'm hoping you can help me figure out the best way to sell our place in Harrisburg, PA.

It's a single family town home- 3 bed/2.5 bath. We have an FHA loan on it and still owe about $113k. It rents for $1150/mo but market rent is closer to $1250 (We are planning on raising it to $1200/mo starting March 1). We've had the same tenants in there for 5 years, they pay on time and take good care of the place (they planted flower beds, had a fence built and rented a pressure washer to clean the exterior, with our permission of course). It's a relatively newer home so we haven't had a ton of maintenance- we've repaired the disposal and dishwasher and replaced the fridge over the last 5 years.

Unfortunately, for us, it is a break-even situation because of when we bought it.  We'd like to sell so that we can pursue other opportunities.  For someone else though, purchasing at $113k would be a cash-flow positive situation.  

Does it make sense to allow someone to assume the loan?  They'd have 9 years of the loan paid down, but they'd be in the same break-even scenario as us.  Or, is it attractive to allow traditional financing on this deal for someone who doesn't have the ability to do an all cash purchase?  

[Wayne Brooks]

FHA loans are All assumable, but.....they are for owner occupants only, so you need an owner occupant, not an investor, to assume.