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The Operative Group Has Proprietary First-Of-Its-Kind Real Estate Tool That Allows Homebuyers And Investors The Ability To Find Homes For Sale With Assumable Loan Types.
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We Have Sourced Listed Properties That Are For Sale TODAY that Have Interest Rates Between 2.9% - 5% That You Can Assume TODAY!
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How Does All This Work Anyways?
What is an Assumable Mortgage?
An assumable mortgage is a unique financing option that allows a homebuyer to take over the seller's existing mortgage, including its terms, interest rate, and remaining balance.
This can be a significant advantage, especially in a market with rising interest rates, as buyers may benefit from the seller's lower rate and save thousands over the life of the loan.
Typically, assumable loans are available for FHA, VA, and USDA loans, but they require lender approval to ensure the buyer meets the necessary qualifications.
By assuming the mortgage, the buyer steps into the seller's shoes, continuing payments where the seller left off.
This type of financing not only simplifies the home-buying process but can also make homes with assumable loans more attractive to potential buyers, giving them a competitive edge in the market.
What Types Of Loans Are Assumable?
Assumable loans include VA, FHA, and USDA loans, offering buyers the opportunity to take over the seller’s existing mortgage terms.
These loan types allow buyers to benefit from potentially lower interest rates, making homeownership more affordable in a high-rate market.
For FHA and USDA loans, the assumption process typically requires lender approval to ensure the buyer qualifies.
VA loans are also assumable, and notably, buyers are not required to have VA eligibility to assume a VA loan.
However, if the buyer is not VA-eligible, the seller’s VA entitlement may remain tied to the loan unless the buyer is a veteran with their own entitlement to substitute.
These assumable loans can be a powerful tool for both buyers and sellers, creating a win-win opportunity in today’s real estate market.
What Are The Benefits Of An Assumable Loan?
✓ Assumable loans offer a variety of advantages that can make homeownership more affordable and appealing:
✓ Lower Interest Rates: Buyers take over the seller's existing interest rate, which is often much lower than current market rates.
✓ Shorter Loan Terms: By assuming the seller's loan, buyers inherit the remaining loan term, potentially paying off the home faster.
✓ No Appraisal Requirement: In many cases, an appraisal is not necessary, simplifying and speeding up the process.
✓ Reduced Closing Costs: Assumable loans often come with lower closing costs compared to new loans.
✓ Shorter Loan Terms: By assuming the seller's loan, buyers inherit the remaining loan term, potentially paying off the home faster.
✓ No Appraisal Requirement: In many cases, an appraisal is not necessary, simplifying and speeding up the process.
✓ Reduced Closing Costs: Assumable loans often come with lower closing costs compared to new loans.
✓ No VA Funding Fee: For VA loans, buyers save on the VA funding fee.
However, the VA charges a flat 0.5% assumption fee, which is waived for veterans with a service-related disability rating or surviving spouses of veterans who died in service or due to a service-related disability.
