Assumable Loans - everything you need to know

[@artofrealtygroup3756]

Thanks for the video. Working with a Penny Mac assumable FHA Loan with a Seller - closing date confirmed - 60 days total processing time - not bad as long as you stay updated with all parties including the title company. Rate assumed 3.99% fixed with a remaining 27 years.

[@JoshAlexanderRealEstate]

Thanks for the info! Love hearing when buyers successfully use this strategy to get a great deal, congrats!

[@phylliswilson8409]

This is EXCELLENT information! Assumable loans present an excellent opportunity for buyers to purchase a new home at low interest rate! Thank you for this channel! 😄

[@JoshAlexanderRealEstate]

Thanks for the kind words Phyllis! I know you’ll find the right buyer for your home soon, who could pass up a 2.3% rate? 🙂

[@athenatong3768]

Where is your house Phyllis?

[@wtate3840]

Equity and value are usually much more than $100K in the current market. Which means the buyer would likely need to execute a second mortgage. Very few lenders will underwrite a loan as second lean holder.

[@JoshAlexanderRealEstate]

Yes the farther we get from the time rates were in the 2-3% the more equity the buyer will have to bring in. There are also more lenders this year that will now give 2nd mortgages to make up some of that difference but they will typically still require a sizable down payment

[@hindamohamed140]

This is great information. Thanks for explaining the process thoroughly.

[@JoshAlexanderRealEstate]

Glad you found it useful, thanks for watching!

[@nicklesueur1893]

Thanks for this video! I'm working through my first assumable with a client of mine. Very good info here!!!

[@JoshAlexanderRealEstate]

Awesome! Let me know how it goes 🙂

[@michaelhowell8990]

I’m doing this right now. Be ready for 3-6 months. I’m on day 101 & no close date yet. Useful info is filing complaints with Consumer Financial Protection Bureau & the VA form Circular 26-23-27 that came out December 20th 2023.

[@michaelhowell8990]

I’m using Freedom Mortgage. Maybe others are more efficient?

[@JoshAlexanderRealEstate]

keep me updated on how it goes, that is the #1 complaint as more people are starting to utilize these. The timelines are very unpredictable because the processors work very slowly on the files

[@mahoganychic841]

What is the complaint for?

[@michaelhowell8990]

@@mahoganychic841 from start to finish it took almost 5 months. The complaint is due to the amount of time it took.

[@fionanguyen3062]

Thank you for a very helpful video about assumable loan! Quick question, seller has to use the loan servicer through their current lender right?

[@JoshAlexanderRealEstate]

Correct, had to be done and approved by whoever owns the seller’s mortgage

[@theedge5193]

Even if the home was purchased 10 or 15 years ago it’s possible it could have undergone a recent loan modification in which case it could’ve extended the maturity and the payment would be lower. I wouldn’t limit home searches based on when it was purchased due to this scenario. Additionally last couple of years in response to covid related issues to borrowers FHA made partial claim solutions the main workout program for loss mitigation. What came with that is a flood of second partial claim mortgages on the original fha home. I would be on the look out for this since sometimes the homeowners themselves don’t remember they have these silent non interest non payment second liens owes to HUD.

[@JoshAlexanderRealEstate]

thanks for the additional feedback!

[@Practitionher]

Correct I have a VA that I modified . Now I’m wanting to purchase my “dream home” and looking at options for keeping this as a rental if I don’t indeed have to sale

[@LuisluigiTexas]

Excellent info for sure. The most detailed I’ve found

[@JoshAlexanderRealEstate]

Glad it was helpful!

[@JM-ls8du]

Thank you! Thank you!! Thank you!! Your video is the best one I found on this information love it❤❤❤❤

[@JoshAlexanderRealEstate]

Glad I was able to help! Thanks for watching!

[@JM-ls8du]

@@JoshAlexanderRealEstate I have a question for you. Can you assume a loan after the owner goes to court? Or it has to be before that.

[@JoshAlexanderRealEstate]

I would assume it would probably be too late if the paperwork is already started for a short sale or foreclosures but the best course of action would be to contact the loan servicer to see if it’s a possibility based on the individual situation.

[@JM-ls8du]

@@JoshAlexanderRealEstate Thank You for responding so quickly I really appreciate it!! I will let the owner know this information and hopefully we’ll be able to work something out with them. Thanks again!!🙂🙂🙂

[@sgilliver8]

The new thing is realtors contacting home owners (that aren't for sale) seeing if they're interested in working out something with assumable loans with small perks. Want my 2.8? 75k on top - min.

[@JoshAlexanderRealEstate]

It’s something I’m doing as well because of the potential upside for sellers to get a much higher price on their home than market value. It doesn’t make sense for most buyers to do this but for someone that is planning on being in the home a long time and they have a significant downpayment then the lower monthly payments might be worth the premium they are going to pay in the long run. It takes longer than normal to close escrow for these types of purchases as well so timing is also a big factor to consider for both parties involved.

[@TheZeedler]

Thanks bro! This was great

[@JoshAlexanderRealEstate]

thanks for the feedback, hope you got some good info from it 🙂

[@MrDarkBM]

I’m thinking about selling my VA loan as an assumption, but I would need some kind of clause where it’s only applicable to another vet or AD member as I want to keep my VA benefit still.

[@JoshAlexanderRealEstate]

Ya talk to your loan servicer and see if there is anything you can sign that would allow you to keep your benefits even if it’s not another VA borrower. Sometimes it’s still possible.

[@dpac9579]

@MrDarkBM are you still selling you Mr home?

[@shanib.2]

​​​​@@JoshAlexanderRealEstate VA will not because of the insurance or eligibility that is attached. It must be another Veteran that assumes the loan so your benefits are not affected or remain tied up until the property is sold.

[@taranghundiwala3503]

We are under contract to assume an FHA loan. If it goes through, we intend on renting out our current home and moving into the assumed property as a primary residence. Does the assumption require us to be "first-time" home-buyers?

[@JoshAlexanderRealEstate]

From my understanding there is no first time home owner requirement for assuming a loan, FHA loans are open to anyone that qualifies regardless of how many homes they have owned in the past, as long as you are planning on making the home you are buying your primary home I don't see an issue with that but as always you want to check with the individual loan server to get clarification

[@ScrapGoldAcademy]

I am in the same boat. Offer just accepted and starting the assumption process. How’s it going for you? Did the deal close and were you able to keep the other house as a rental?

[@taranghundiwala3503]

Yes! The assumption took ~90 days and we have moved into the new house while keeping the old house as a rental.

[@alejandrorojerogonzalez193]

Hi guys question how much did you end up paying for the equity? On the house ?

[@AhmedMakkiyah]

Does buyer has to work with seller's lender to assume the mortgage ?

[@JoshAlexanderRealEstate]

Yes, the buyer will need to be in contact with the sellers mortgage service provider to get qualified to take over the loan(assume the loan)

[@gauthamworld]

Just so i understood, even though assumable loans are serviced by the seller's lender, you are saying it's a good idea to still get a few preapprovals for a general mortgage before shopping for these type of loans right?

[@JoshAlexanderRealEstate]

Correct, I don’t want to make these assumable loans sound easy to get, they are still rare as most sellers don’t even know that their loans are assumable. You want to get a normal loan approval first for two reasons: 1) if you get pre-approved you’ll be able to at least have the option to place offers on the 98% of homes where assuming the loan doesn’t make sense. 2) if you don’t qualify for a regular loan the odds of you qualifying for an assumable loan are not going to be very good either so at least you know up front before you start.

[@Mr.conserv]

Who sets the market value of the home? Do you have to get appraisal?

[@JoshAlexanderRealEstate]

You can have it appraised or use a real estate agent to help you determine the current value. I would recommend a real estate agent because an appraiser won’t be factoring in the higher value that someone would be willing to pay if they could assume the loan which is the biggest benefit for home owners to use this assumable loan product

[@minab6985]

can you use any lender or use the current lender of the property

[@JoshAlexanderRealEstate]

Hi thanks for watching! You have to take over the loan from the existing lender/loan servicer the seller is using, you can’t use your own.

[@kirkjarrett4372]

Hi Josh! Is there any credible website where i can find listing of assumable loans?

[@JoshAlexanderRealEstate]

I know there are companies that have tried to curate list but as of now really anything that I personally known of. However you can have your agent set up a search for properties with FHA, VA, and USDA loans which could all qualify for assumable loans and then start talking to the agents of those homes to see if the seller would consider an assumable loan sale(many sellers are unaware of this possible gold mine they are sitting on)

[@annapanszczyk178]

What happens if the seller is past due on their loan? The buyer must pay the past due balance? When would it be due?

[@JoshAlexanderRealEstate]

The loan has to be in good standing to be assumable so it would be up to the loan servicer to provide the steps needed to be taken to fix that but either the seller pays it off with the proceeds of the sale if there is a profit for them or the buyer pays off the outstanding balance. It would be something that is negotiated between buyer and seller and then cleared by the loan servicer in most cases.

[@WwoJakkk]

so what is the price of the loan? the original price of the house last sold back in 2015? what is the "ASSUMED" here? just the rate ? applied to a new HIGHER price of 2025?

[@JoshAlexanderRealEstate]

The price of the loan is the remaining balance of whatever the homeowner hasn’t paid off, you are just taking over the loan. Then you need to come in with cash for the difference between what they owe on the loan and todays fair market value(or whatever the seller is willing to sell you the home for)

[@WwoJakkk]

@@JoshAlexanderRealEstate what if that " difference " is close to zero and maybe the seller is owe-ing more on the mortgage vs the " marketvalue" of the house?

[@JoshAlexanderRealEstate]

Then if the seller allows you to take over the loan so they can get ride of the mortgage and just transfer it to you that would also work as long as they aren’t behind on payments.

[@WwoJakkk]

@@JoshAlexanderRealEstate would they lose their " right" to " allow" another person/corp to take over the loan if they are behind on payments to the bank or mortgage company?

[@JoshAlexanderRealEstate]

Depends on how far behind they are but in most cases if the get there account back in good standing by making all the back payments due when the go to sell the home than I don’t see why they wouldn’t be able to transfer the loan but it’s up to the individual loan service providers so it’s a case by case basis.

[@scottg247]

Just saw your video. Curious if you’ve done any assumption deals? It’s my understanding that FHA loans are required by HUD to allow the assumption and to have it done within 45 days, curious if you’re aware of any of this? Thanks

[@JoshAlexanderRealEstate]

I haven't done any myself yet but have talked to agents that have, with the FHA ones I've heard of some that have taken anywhere from 45 days to 4 months to get finalized, same with VA assumptions.

[@Practitionher]

Will it still be a VA Loan ? Can I assume my own VA mortgage and transfer it to an LLC ? I would like to keep this home for investment and reinstate my VA entitlement

[@JoshAlexanderRealEstate]

Yes it would still be a VA loan, the only way to reinstate your VA benefits would be to sell your home to another vet which and LLC wouldn't qualify for it as far as I know.

[@J.J.Stokes]

hi, if I buy a home with an assumable loan, do I have to live in it right away? and if so how long do I have to live there before I can rent it? thx!

[@JoshAlexanderRealEstate]

Yes one of the criteria you must meet is that you'll live in the home for at least a year as a primary resident before renting it out.

[@scottg247]

Thanks for this video, any idea of a way to find if homes listed for sale have an fha loan without having to call the agent? 9 times out of 10 when I call the agent and ask they never know and seem to not want to find out

[@JoshAlexanderRealEstate]

It might vary state by state but for California I don’t know of any easy way besides asking the owner or listing agent directly. There are websites that say they will give you the info for a fee but I’ve never personally used them. You might be able to ask your lender to look it up as well.

[@scottg247]

@@JoshAlexanderRealEstate yea thats what it seems, I’m in California also. After watching your video I started going through a lot of listings and found a few using the assumable loan as a selling point

[@JoshAlexanderRealEstate]

Ya if it’s assumable they would be really missing out on an opportunity to get a higher price for their home if they don’t market it. Like you said though, a lot of agents don’t do the work or even ask their sellers so they miss out on the opportunity to get a higher price by hiring someone inexperienced.

[@scottg247]

@@JoshAlexanderRealEstate agreed, I’m a buyer, and it’s a little frustrating seeing the lack of knowledge form some agents. But I’m praying I can find an assumable deal that works for me. I sold in 2020, moved to a different area and prices took off, now I feel like I missed out, so hoping I can find something. Again thanks for the great video! Take care

[@amberbryan86]

If the seller has other liens on the home does this open up the buyer for more risks? When the title is transferred does the new owner assume the liability of any existing or unknown liens that the seller had on the home?

[@JoshAlexanderRealEstate]

You would want to get a title insurance company involved in your transaction to make sure you are protecting yourself from any unknown liens on the home. Typically the seller will be responsible to pay off any liens before being able to sell the property even if it’s an assumable loan.

[@ama169]

We have a 3.5 percent loan but we had a fha partial claim of $17,000 due to Covid on the back of our loan, how would that work?

[@JoshAlexanderRealEstate]

My assumption is you would just pay off the $17,000 with the proceeds of the sale and that it wouldn’t be an issue but to get a concrete answer you can call your loan servicer( the company sending you your mortgage bill) and they will know what the process would look like for your specific situation. Hope that helps.

[@thisoldgoat6396]

Do you have to live in the home if you do this or can you rent it out right away?

[@JoshAlexanderRealEstate]

Typically you’ll need to live in the home for a year

[@leeragsdale7553]

Does this work for investment properties or does it have to be owner-occupied?

[@JoshAlexanderRealEstate]

If the investment property has a FHA, VA, or USDA loan and the loan servicer is ok with it then yes, from the best of my knowledge you should be able to.

[@ManifestingMagicCA]

Must be owner occupied for first 6months

[@TheLeosan777]

Hi Josh, I can predict that with this marketplace you will get a lot of views on your video. Without a doubt, it is these market twists that allow you to put your wits to use and differentiate yourself from the majority. Thank you for such a good presentation. Greeting from South Florida!

[@JoshAlexanderRealEstate]

Really appreciate it! Thank you for watching 🙂

[@Harlem_knights]

What are the negative point for selling my VA loan as an assumable loan?

[@JoshAlexanderRealEstate]

It’s explained in the video but if you sell a home with a VA loan to someone other than a vet your going to have part or all of your VA entitlement wrapped up in the current home and won’t be able to use it on your next one.

[@MrTschell]

Josh - Can an Assumable Loan be Wholesaled? If so, what is the Process? Thanks.

[@JoshAlexanderRealEstate]

Not to my knowledge but I’ve never checked officially

[@MrTschell]

@@JoshAlexanderRealEstate Thank you. I am researching it further. Terry

[@stevenjohnson930]

I have a house in NC that I put up for sale. It is a VA home loan with 4.25% interest. I have spoken to several banks about financing the difference and there have been zero banks that are willing to pull a HELOC out on a property that the owner does not own prior to sale. With VA homeloan if you don’t sell to another Veteran your going to lose that entitlement until the house is paid off..

[@JoshAlexanderRealEstate]

Correct, most banks wont put a second mortgage on the home to help with the downpayment as they usually want you to have at least 20% equity in the home after taking into account all the loans on the home so that is a common issue unfortunately. You're also correct with the VA loan if it's sold to a Vet then you loss the entitlement until that home is fully paid of or refinanced out of the current loan so unless you live in a military town it can be hard to find the right buyer for the house to make sure you can use those VA funds for your next home

[@tanyawolcottrealtor]

Very good description!

[@JoshAlexanderRealEstate]

Thanks for watching! Glad it was helpful 🙂

[@leticiaortiz7267]

Hi Josh! Thank you for all of the great information. We are looking to secure a loan for the difference between the assumable loan and the current market price. Is this possible. We are in Riverside county, CA. Thank you!

[@JoshAlexanderRealEstate]

Yes some lenders will do that for you. Feel free to email me your contact info and I’ll get you in touch with one that does or you can ask your current lender as well. [e-mail]

[@Mdambrosio93]

@@JoshAlexanderRealEstate Hey Josh! How would that work out in terms of a downpayment? If i secured a second mortgage for the difference, (65k) would i just be paying a percentage down of that second mortgage, say, 3.5 or 5, 0r 10, 20% etc ?

[@JoshAlexanderRealEstate]

Yes you would just be required to bring in closing costs and the downpayment. Most 2nd loans will require at minimum 20% down though so keep that in mind.

[@Mdambrosio93]

@@JoshAlexanderRealEstate thanks for that info! will that 20% only be a percentage of the actual second mortgage $ amount? not the assumable portion, correct?

[@JoshAlexanderRealEstate]

Yes but again that’s a minimum, best to talk to your lender to see what they will require as a percent down. 👍🏻

[@sjlincolnrealty]

Great video, very helpful

[@JoshAlexanderRealEstate]

Thanks for watching!

[@silvn1212]

Thanks for this wholesome video!! Does using a physician mortgage also qualify to be able to assume the FHA? Or is it only FHA & VA?

[@JoshAlexanderRealEstate]

Thanks for watching! It’s only FHA, VA, and USDA loans that would qualify.

[@Rap-dogg]

Question though: I have a 4plex I’m buying now for $485k with a down payment of $40k and I want to recoup that by next year. How is the amount of equity determined once I try to sell it? They’ll have to pay for another appraisal? What if house prices go down, could I potentially lose money? I came across this as I was trying to see about maybe doing a wraparound mortgage option on it but this seemed more of a “legitimate “ method.

[@JoshAlexanderRealEstate]

Trying to understand your question are you asking how do you determine how much equity you have in your property in a year or how much a potential buyer would need to bring to the table to assume your loan on that property in year?

[@Rap-dogg]

@@JoshAlexanderRealEstate basically what is the best way to go about it to try to recuperate my down payment and maybe some interest with their ongoing payments? Will it depend on its value at that time and how will value be determined? By another appraisal? Would it be required by FHA? I'm trying to wrap my head around all this.

[@ARCGRAPHIX2011]

@@Rap-doggraise the rents that would make the property worth more money, depends on the income the property is bringing in,

[@crhoads13]

great content. Thanks!

[@JoshAlexanderRealEstate]

Thanks for watching!

[@lakelencrain5246]

Awesome video! As a buyer, do you have to open a second mortage/cash payment to pay off the sellers equity? I would prefer to use creative finance if tge seller is motivated. Would owner finance be possible? Thank you!

[@JoshAlexanderRealEstate]

Yes some lenders will allow you to get a second mortgage to cover a portion of the equity the seller has in the home and seller financing is always an option if they are open to it.

[@evgeniyabaklashova4581]

Thank you! Really helpful and easy-to-understand video 💥

[@JoshAlexanderRealEstate]

Glad it was helpful, thanks for watching! 🙂

[@candunga9245]

thanks 😊 for the info

[@JoshAlexanderRealEstate]

No problem 😊

[@mckmotifx8]

Hey ! I have a question a friend didn’t qualify for a house a few years ago. His boss offer and bought the house under his (boss) name with the condition he was going to pay it off … they both always in the same page and trust each other his boss didn’t and won’t charge him anything he just needs to pay the payments .. It’s been a few years now my friend qualifies now and wants to take over the loan under his name since that’s the right thing to do . What’s the best way to for This ? Assumable loan ? .. also his “ Mortgage/bank” is SPS Portfolio.

[@JoshAlexanderRealEstate]

unless is was an FHA or VA loan then unfortunately it won't be assumable, if your friend wanted to take over the loan then he would need to qualify to do so through a bank and then the property could be sold to him as long as he is able to afford the mortgage. The other way would be to do something called seller financing where your friend buys the home from his boss and they set up their own terms for the loan and your friend basically uses your boss as the bank instead of going through a traditional bank. The advantage of doing it that way is if your boss wants to give him a lower rate than what he could get by going through a traditional lender he would be able to set the rate at whatever % they both agree on.

[@sandyyuan896]

Thank you ! Is the buyer who assumes the FHA loan has to move in this house for 1 year ?

[@JoshAlexanderRealEstate]

Yes it must be owner occupied to assume the loan so the buyer would need to live there.

[@sandyyuan896]

thank you so much@@JoshAlexanderRealEstate

[@serenababy6358]

This was incredibly helpful

[@JoshAlexanderRealEstate]

Glad you found it useful 🙂

[@meaganmoreno5917]

Does it have to be a primary residence?

[@JoshAlexanderRealEstate]

If you’re taking over the loan then typical yes because most of the loans(FHA and VA) are meant for owner occupied homes and you’re qualifying under the same terms to take the loan over.

[@rokemayorga4174]

Do I have to qualify as an fha to buy an asumbable fha loan or it don’t matter I make 110k a year

[@JoshAlexanderRealEstate]

Income won’t matter as long as your DTI and all other loan requirements are met. But you are taking over an FHA loan, you can’t refinance it into a conventional loan.

[@fksullay]

does the downpayment go to the seller or the bank? I'm thinking it's the seller becuse it's his/her equity, correct?

[@JoshAlexanderRealEstate]

correct, you would need to bring in the difference between what is left on the loan and what the seller is asking for the home and that would go directly to the seller through escrow(at least in California)

[@calves93]

@@JoshAlexanderRealEstate are there any tax benefits to the seller taking the equity this route vs just selling traditionally for the same amount. (Ex. $150k home with $100k left on mortgage. Buyer assumes mortgage and pays $50k to seller, vs buyer getting a new loan for $150k)?

[@kevins5268]

What if they didnt put any money down on fha and you wanna put 100k down is there a way to lower the monthly payment and not just get ride of pmi and the top balance on assumable loan?

[@JoshAlexanderRealEstate]

FHA will require a minimum of 3.5% down so if you have extra cash you want to put into it, you can apply it towards the principle of the loan so it's paid off even faster probably saving you a significant amount of money on interest or you can set it aside in a bank account and use that extra money to off set your normal mortgage payment but to the best of my knowledge after you take over the FHA loan I don't think you can recast the loan by adding a chunk of money to lower the payments without having to refinance it which would defeat the whole purpose of it. But it might be good to run that by your lender to see if there is a way to do that to be 100% sure.

[@kevins5268]

@JoshAlexanderRealEstate you sir are awesome. My lender told me the exact same thing. Good to see content that isn't bogus lies. I think every realator should have to watch your videos. Because 99% are illiterate on this subject. It total bs 6% of the sale goes to these clowns

[@JoshAlexanderRealEstate]

Glad you found it useful, trying to spread awareness of the subject because you are right, a lot of agents don't have any idea how it works and either can't properly explain it to their buyers, or don't know how to talk to their sellers about it to see if it would be a good option for them to be able to net more money on their home. Thanks for watching!

[@kea7102]

I got a question for you I’m buying my Neighbor and friends house on assumable loan. He’s a VA the house he owes $120,000 on it. He has an equity built-in. I think $168,000. He wants me to take over his loan because he doesn’t want to be foreclosed, he bought it in 2012 how much downpayment would I have to pay for a downpayment in order to take over that Loan please give me an answer. I really need it. Thank you

[@JoshAlexanderRealEstate]

if you want to assume the loan you need to come up with the difference between what he owes and what he is willing to sell it to you for. This process does typically take a few months so not sure how fast he needs to sell it but just want to make sure both of you also have a realistic idea on timing. Hope that helps.

[@schnauzersmexico5141]

Hi, can I finance the assumable loan with my own lender?

[@JoshAlexanderRealEstate]

No unfortunately you are only able to go to the current loan servicer of the loan

[@schnauzersmexico5141]

@@JoshAlexanderRealEstate thank you so much

[@DersaCyr]

Does this only work for a primary residence?

[@JoshAlexanderRealEstate]

Typically because the loan types FHA VA etc are usually meant for a primary resident and to take it over you have to use it as a primary for I believe at least a year as well.

[@Hello30994]

Hi Josh! Thank you for all the great info. I am trying to buy an investment property and is it possible to buy a property with assumable loan as investment property or should I only use the property as primary residence.?

[@JoshAlexanderRealEstate]

Because of the type of loans that qualify for assumption you would need to plan on living at the home to start with in most cases, if you wanted to turn it into a income generating property later on you could but you would need to live in the home as a primary residence first.

[@ananimitygrey2072]

Hello, I am interested in purchasing a rental property in Washington state with my liquidated 401k. I have a seller who wants 20K cash and says I can assume his current mortgage. With your video I just watched, I am not sure which type of loan he purchased his house, I assume it was conventional. The seller still owes 225k on property's loan with 4.5% interest. The house is not worth more at this time as there were transients living in it and needs to be fixed. I already have a renter who is willing to sign a year lease for above the current mortgage payment after bringing it up to code. Can this be done or do I have to use a DSLR loan? What are my options? A real estate agent here says I can't get a investment property without showing my income. I do not have current income as I am in school and my husband is covering our own housing needs while I complete my education learning a new trade. Thank you in advance.

[@JoshAlexanderRealEstate]

A lot to unpack here but let me see if I can clarify some things, so for an assumable loan the loan would have to be FHA, VA, or USDA, conventional loans wont qualify. On top of that if it is the correct type of loan that you can assume, you have to qualify to take over the payments as a home owner not an investor so unless you plan on living there the assumable loan probably won't work in your situation either way. As for DSCR loans, I wouldn't rely on real estate agents telling you that you can or can't qualify for those, that will be strictly up to the lender not the agent so I would talk to your current lender to see if they offer those type of loans that would not require income on your end. If your current lender doesn't do DSCR loans I can try and reach out to my lenders to see if any of them are licensed in Washington that could possibly help you. Hope that helps clarify things.

[@ananimitygrey2072]

@@JoshAlexanderRealEstate thank you. I'll send you my info for contacts.

[@NikasKitchenCravings]

In the case of divorce where the remaining spouse is awarded the property with the agreement they will remove the ex spouse through an assumption, what are the anticipated fees/costs?

[@JoshAlexanderRealEstate]

Usually it’s minimal since you’re not getting a brand new loan. If you contact your loan services(the phone number on your mortgage statement) they should be able to let you know a more precise amount because each servicer changes slightly different rates. Not sure what state your in but if you’re in CA and just need your partners name taken off the deed you could also do a quit claim deed which is very inexpensive and would put the property into just your name. Those are usually less than $100s to get done.

[@NikasKitchenCravings]

@Josh Alexander Real Estate Orange County thank you kindly! I'll check into the quick claim deed and I'm in Texas (Tarrant County)

[@pop2522]

Where can I find these to buy?

[@JoshAlexanderRealEstate]

Right now there isn’t a streamlined way of doing it. You have to ask the selling agent each time if the seller has an FHA, VA, or USDA loan and if they do you can request more info about the possibility. Locally here in Orange County there is a way to set up a search for only FHA homes but the issue is that most realtors don’t fill out that part of the MLS when they’re putting the Home into the system so a lot of results will be missing.

[@RickElmendorf]

Good stuff brother!

[@JoshAlexanderRealEstate]

Appreciate it!

[@ColoradoLowFeeListing]

Obtaining a 2nd loan to cover the difference seems much more attractive than cash for the difference. To get preapproved, does the borrower need their income high enough to qualify for the entire purchase price OR is it evaluated per each mortgage amount separately given that there would be 2 lenders requiring different income amounts for the different mortgages?

[@JoshAlexanderRealEstate]

To get a second mortgage is an option however it is very difficult to find lenders willing to do it. Typical with a second mortgage you wont be able to finance the entire difference because the lender/back would see that as too risky, instead they may as you to bring in a certain percent of the total value of the house as a downpayment so the bank has some assurance that if you had to sell it they could get all of their money back. So for example, let's say you want to buy a home with an assumable mortgage that is $500,000. The current owners owe $400,000 on the mortgage. So there is $100,000 difference. So in this case for the second mortgage the bank might only be willing to loan you a total of $50,000 and you have to come up with $50,000 for the downpayment(or 10% of the total price of the home). As for lenders, the lender doing the second mortgage would also be taking into account the loan you are taking over so you would still have to basically qualify to have the assumable mortgage and the second mortgage based on your current financials. Hope that helps.

[@ColoradoLowFeeListing]

As long as they are willing to conduct a loan at $50k as Ive heard many lenders have minimums of $100k. Since the 2nd mortgage company would be qualifying the full purchase price, would this be at current rates OR the current rate for the 2nd mortgage portion only?

[@elpatron1977]

Is the seller removed from mortgage contract when doing an Assumable Loan or is seller still attached to the house untill paid off or Refinanced?

[@JoshAlexanderRealEstate]

The seller will be removed from the loan as long as they sign the release of liability of it, so as a seller you need to make sure you tell the loan servicer you need to be removed from the loan(this should be automatic but you always want to double check so there are no mix ups)

[@quintonrivers4351]

How does this work with USDA

[@JoshAlexanderRealEstate]

USDA as also government backed loans so most should be assumable as well and the process will be identical to FHA/VA loans. The seller just needs to call their loan servicer and ask how the process works for that specific company.

[@williammorrison920]

How does the agent get paid?

[@JoshAlexanderRealEstate]

Unless you are going directly to the seller the sale process is the same so in most areas the seller would pay the agent commissions and the buyer would still be going through and having inspections done etc to make sure they are satisfied with the houses condition. Depending on your state escrow and or title will also be involved too.

[@raydeensprings5640]

Thank u this is valuable info!

[@JoshAlexanderRealEstate]

glad it was helpful, thanks for watching! 🙂

[@ElenaFernandez-zl5sx]

Can a person that got a fha loan but it was not processed as a new buyer. what can I do to change this.

[@JoshAlexanderRealEstate]

Hmm not sure I understand the question

[@kwmlin02]

0:50 Can seller refuse to let the buyer assume the assume loan? Or it just need loan company / bank agrees.

[@JoshAlexanderRealEstate]

The seller needs to be willing to do the assumable loan because the loan is in their name so all three parties(buyer, seller, loan servicer) need to agree to make it work

[@tinapugh7653]

Can I still do an assumable loan if we already have a mortgage

[@JoshAlexanderRealEstate]

As long as the loan servicer says you qualify then yes.

[@zengal7138]

Where do I find such assumable loan houses?

[@JoshAlexanderRealEstate]

Right now there really isn't a filter for it when you go to search for homes on places like Zillow or Redfin. However, if you find a house that you like, you can have your real estate agent do some research for you to find out if the loan might be assumable. Typically, unless you have a lot of cash for a downpayment, you'll want to be looking for homes that are for sale that have been previously purchased in the last 2-4 years that way the difference between the current asking price and what the seller owns on the property is smaller.

[@CarlosHernandez-nh2bk]

If I’m planning to assume a VA loan from a friend. He is currently renting the home out and it is an awesome opportunity to get a cash flowing property . If I’m able to assume the loan do I have to make it my primary residence?

[@JoshAlexanderRealEstate]

That will most likely depend on the loan servicer, I would have your friend call the servicer and ask that question to see what they say.

[@havefunoutthere6378]

I really wish all videos were this good.

[@JoshAlexanderRealEstate]

thank you so much, really appreciate the kind words

[@Hasl3r]

My father in law passed away and left the house to me and my wife, his widow has the loan under her name would we use the same loan assumption process to change the loan our name

[@JoshAlexanderRealEstate]

You would have to talk to an attorney about that, typically no, if he left it to you and there is still a mortgage on it depending on if it was in a trust, will, and what state you are in, the rules are different so definitely would want to consult a family estate planning attorney.

[@Dkhos]

I need help here! Does anyone know a lender who will allow a second VA loan while entering into a VA assumable contract? I have A/A+ credit, but have been unsuccessful in finding lenders who will finance the difference between purchase price and the assumable amount. Time is of the essence, thank you!

[@JoshAlexanderRealEstate]

What state are the homes in?

[@Dkhos]

@@JoshAlexanderRealEstate Alexandria, Virginia

[@Dkhos]

Hey Josh, thanks for responding to my question. Any updates on this? The problem seems to be that no lender wants to be the “junior lien holder.”

[@JoshAlexanderRealEstate]

Asked around with my current lenders but haven’t found a solution yet. I have someone local to you that I can get you in contact with which might be able to find an option for you. You can shoot me a text and I can send you the info. My number is [phone].

[@JoshAlexanderRealEstate]

Can you text me your info by chance? I have a agent referral that does a lot business in Virgina and might have a lender that could try and help find a solution for you. My cell is [phone]

[@huongtrinh8609]

Thank you!

[@JoshAlexanderRealEstate]

You're welcome! Hope it clarified assumable loans for you 🙂

[@StevenBerry-t9y]

Great info!

[@JoshAlexanderRealEstate]

Glad it was helpful!

[@hyperdrive5065]

If anyone’s looking to move to Missouri city area of Houston Tx. I have a property valued at close to $500k. That’s Eligible for an FHA assumable at 2.75% rate.

[@hermanchan6260]

You still have that property?

[@Practitionher]

Ironically that’s where I’m looking to purchase my dream home . But I’m loving the new toll brothers builds around 4,000 sq ft

[@Practitionher]

I have a home around same price at 2.75 VA 😏

[@hyperdrive5065]

@@hermanchan6260 yes I do.

[@hyperdrive5065]

@@Practitionher nice!

[@BasicLeigh]

Onea thing, ...... then the seller has to buy a house with high interest rate. (but large downpayment)

[@JoshAlexanderRealEstate]

Yes if a seller is selling the next home they buy will be based on current rates unless they are lucky enough to find a home that has an assumable mortgage as well.

[@makaladeclouet6582]

My mom wants to transfer her va loan to us (civilians) and give us the house for the cost of the remainder of the loan, no mark up, can she do that? She rather us save the money for a down payment and invest it into the house especially since she’s gonna still live with us until she passes.

[@JoshAlexanderRealEstate]

Yes! You will need to qualify to purchase the home from your Mom's loan servicer so as long as you qualify for it she should be able to transfer it to you. The loan servicer will be the best person to contact about how the whole qualifying and assuming process would work because each servicer works a little differently.

[@anwarwilliams7365]

Great content bro ! Closing is big of. Pain in the ass but I had to get a stand alone 2nd mortgage for client and it worked out they had a lot of capital To work with far as down payment so it work out

[@JoshAlexanderRealEstate]

Nice! Glad to hear and thanks for watching!

[@thekraftycreech]

Awesome info.. thank you.. new subscriber.. we are currently are looking to purchase a 2nd home.. we have a VA loan on our current property.. will we be able to use another VA loan on our 2nd property. Thanks

[@JoshAlexanderRealEstate]

From the best of my knowledge you can only have one at a time but let me know what state you’re from and I can see if there are options out there for you.

[@thekraftycreech]

@@JoshAlexanderRealEstate We will be buying in Michigan.. thanks so much

[@JoshAlexanderRealEstate]

Sorry for the delay, just got back from vacation. I do have a lender referral for you if you wanted to talk to someone about having a second VA loan on your next property. Feel free to reach out to me and I'll send over the contact info to you. My cell # is 714-366-2186

[@oak415]

None of my realtors including the ones VA United know about these loan assumption loans

[@JoshAlexanderRealEstate]

Unfortunately because they haven’t been popular in the last 20 years many agents aren’t educated on them yet

[@user-vg8ez9cu6u]

I thought you only need to be in the home for 1 year to use you VA benefit on another home

[@caprijasmine60]

Good video

[@JoshAlexanderRealEstate]

Thanks for watching!

[@oak415]

You need to make a video on How to find these unicorns

[@JoshAlexanderRealEstate]

It’s not easy, in my current MLS it allows me to search for FHA homes but it’s not very reliable as a lot of agents don’t fill that part out when they out the listing online. Which really leaves the best way to find them as finding a property you like and then ask the agent to check if it’s FHA. A lot of agents don’t understand these loans and how they work so sometimes you have to educate the seller/selling agent as well if it is an FHA loan so that way they are also aware of the benefits.

[@tabithavogelsong]

Great video!

[@JoshAlexanderRealEstate]

thanks for watching, hopefully it was helpful 🙂

[@camioh9091]

I've lived in my home since 2007, but at the time we only put the loan in my ex husbands name. Through the divorce we agreed to him keeping the business and all financial gains, and I would buy the home for what is owed, which is $259k. The house has not been appraised, but appx value is currently $380k. With current interest rates, I cannot afford the mortgage, but have been paying the current 4% mortgage with no issues for over a year. Would assuming the loan be the best option for both parties? Can he gift the equity without taking a financial hit?

[@JoshAlexanderRealEstate]

Because there are so many variables it best to talk to the loan servicer to see what your options are and pick the one that makes the most financial sense. If it’s an FHA or VA loan then it’s most likely assumable but there might be a better route to go once you explain the situation to the one who is servicing the loan.

[@lesliehatun2044]

The Veteran giving up their VA loan loses their benefit. I'm not giving up MY benefit just to sell my home and then get stuck with an FHA loan which requires a 20% down payment.

[@JoshAlexanderRealEstate]

Ya in most cases unless you sell to another veteran you’re better off just selling it normal however you will loss out on getting a higher price from the home so it all depends on the individual situation.

[@Danny_Ocean]

FHA is 3.5% down

[@JoshAlexanderRealEstate]

@@Danny_Ocean correct, at least in most cases depending on your credit score

[@ivanramirez9928]

That is not true. Every state has an eligibility amount. You might have 700k eligibility and allow buyer to assume 250k loan. Therefore your eligible to get another va loan for a property 450k >

[@JoshAlexanderRealEstate]

very true, thanks for bringing up that point. From my experience most loans that buyers want to assume would be ones that still have a significant loan balance purchased in the last few years when rates were lower so it's unlikely the Veteran would have a lot left to use towards the purchase on a new home using the VA loan unless they purchased a long time ago and the buyer brings in a significant downpayment to cover the difference.

[@JohnSmithh644]

I heard if you assume a loan it's possible that your ownership of the house could come into question

[@JoshAlexanderRealEstate]

It shouldn’t as long as it’s done correctly, you can always get title insurance involved to verify the seller is the owner of the home and get title insurance to make sure you never have issues on your end either.

[@ARCGRAPHIX2011]

This is genius I’ve been searching for this type of info thnx for the video! How can I contact you do you have an email?

[@JoshAlexanderRealEstate]

Glad you got some good info out of the video, thanks for watching! Yes you can reach out to me anytime at [e-mail].

[@bfanning12]

Great info!

[@JoshAlexanderRealEstate]

thanks for watching, glad you found it useful 🙂