- VA, FHA and USDA mortgages all carry a qualifying assumable clause, which means any owner-occupant buyer can qualify using the same standard the loan was issued under with the existing mortgage servicer. Investors cannot assume these loans.
- VA loans can be assumed by both veterans and non-veterans. Veteran-to-veteran assumptions allow the buyer to substitute their VA entitlement onto the loan and release the seller
This is something we’ve not thought about for years and it may make your house worth more to a buyer. Do you have a lower interest rate on a assumable loan? For many years the interest rates were steady within a point of the last few years or going down. Why assume a loan at 4% when I can get a new one at 3.75%. But that changed VERY rapidy. In the last year we have seen rates rise from 3% to over 6%. First thing is first: What kind of loan do you have?
- VA, FHA and USDA mortgages all carry a qualifying assumable clause, which means any owner-occupant buyer can qualify using the same standard the loan was issued under with the existing mortgage servicer. Investors cannot assume these loans.
- VA loans can be assumed by both veterans and non-veterans. Veteran-to-veteran assumptions allow the buyer to substitute their VA entitlement onto the loan and release the seller
