An existing FHA insured loan can be assumed. Assuming a loan is less expensive than going through the process of getting a new loan and is more streamlined. Sometimes, the original FHA insured loan even has a lower interest rate than what is currently available with a new loan!
What is needed to assume an FHA insured loan? The application process is started with the current lender. The new buyer must show that they have enough income to support the mortgage loan. A credit check is also required but no property appraisal is required. Since a credit check and application are required, the new buyer must be able to show (using FHA guidelines) that they can afford the loan payments to purchase and assume.
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