- January 13, 2014
- Posted by: EWTAZ
- Category: Federal Programs
The video puts this in more visual terms, but yes! You can assume an existing FHA-insured loan, or, if you are the one deciding to sell allow a buyer to assume yours.
Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to that for a new loan. Also, assuming a loan can often result in a lower interest rate.
The application process consists basically of a credit check and no property appraisal is required. And you must demonstrate that you have enough income to support the mortgage loan. In this way, qualifying to assume a loan is similar to the qualification requirements for a new one.