Assumable Mortgages - I Have A Great Rate

[Nick Winikoff]

Hi,

I have a small multi family which I bought at the beginning of 2021.

The loan is an FHA and has a 1.87% interest rate.

I know in certain circumstances an FHA can be assumed by another person.

My idea is essentially selling the property with an assumable mortgage in order to drive up the value of the property.

Has anyone done this? Is this possible?

The property is in Baltimore Maryland.

Thanks!

[Doug Smith]

It is possible, but carefully read the note and mortgage for those assumability provisions and reach out to the servicer before you offer it to understand their process. They will have to approve the assignee prior to any assumption, so you might want to make sure that information is uploaded to the buyer so they can complete the process if they wish to do so, but the servicer will have any applications they need. Good luck to you.