Navigation Links
Home Sellers Amazed by VA and FHA Mortgage Assumption Opportunities
Date:9/21/2013

Minneapolis, Minnesota (PRWEB) September 21, 2013

In a rising rate housing market, assumability may make a home purchase affordable. A VA mortgage assumption is generally defined as "a purchase transaction where the purchaser takes over the liability of an existing mortgage from the seller", according to a recent article published by the Veterans United Network. Home sellers amazed by VA and FHA mortgage assumption opportunities are learning that it may give them an additional marketing advantage.

"We find that Twin Cities house sellers are often surprised to learn that a mortgage insured by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA) could be inherited." says Jenna Thuening, owner of Home Destination. "That means that if the real estate seller has an FHA or VA home loan with terms including a remarkably low interest rate, one could market the home letting prospective home buyers know they may be able to assume the mortgage loan."

Qualifying home buyers can assume an existing FHA-insured loan, according to U.S. Department of Housing and Urban Development (HUD). Conversely, a home seller may allow a buyer to assume their FHA or VA loan. "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," states HUD's website.

"Home sellers need awareness that VA mortgage assumptions have time constraints, adds Thuening. According to a recent article in the New York Times and HUD, VA loans that closed before March 1, 1988, may be assumed without approval from the VA or the lender. Applicants who wish to assume VA loans closed after March 1, 1988, must be approved by the Department of Veterans Affairs or its authorized agent.

Home Destination Points Out Additional Advantages of Selling Assumable FHA or VA Home Loans

1. The home buyer incurs fewer settlement fees at the home closing as well; which makes assuming a low interest rate loan even cheaper. Home Destination recommends that all buyers obtain a home appraisal, even though in this case it is not mandated as in a traditional home sale. Some buyers opt our of it when not required to have one.

2. When assuming a loan, borrowers do not have to pay the upfront mortgage insurance premium required on a new loan. However, assumable F.H.A. home loans still require the borrower covers costs for mortgage insurance over the life of the loan.

3. In some states, borrowers assuming a loan do not have to pay the hefty mortgage recording tax a second time.

The Veterans United Network Cautions That There Are Disadvantages Too:

1. The home sellers entitlement is tied to the buyer for the life of the loan. The seller is dependent on possible poor decisions or financial hardships on the buyers part that can negatively impact the sellers eligibility.

2. Should the home someday end up in foreclosure, the seller may have to pay restitution on all or a portion of the losses to reinstate their entitlement.

3. The same is true if the buyer who assumes the loan ends up in a short sale or bankruptcy.

"We came across more FHA loans that were assumable in the past. However, interest rate increases seem to have brought the topic forward more as one opportunity for home sellers. many are quite amazed to learn it may be a option that could work favorably on their behalf," adds Thuening. If the interested home buyer can manage the needed down payment and qualify for the loan assumption, both seller and buyer could find it to be a huge benefit.

Home Destination works to ensure that Twin Cities sellers seeking to sell an assumable FHA or VA home loan, have their best options brought forward. Call 612-396-7832 to reach Jenna Thuening for processional guidance to sell your home and gain the best results.

Read the full story at http://www.prweb.com/releases/Minneapolis-home-sellers/VA-mortgage-assumptions/prweb11148382.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Electronic Health Record sellers face make-or-break year of client ultimatums and revolts, reveals 2013 Black Book survey
2. SS&Si Introduces New Affiliate Program for Resellers in Growing Medical Alert Industry
3. emerginC Re-Invents One of Its Best Sellers Complexion Control and Launches it into Australian Salons
4. eDist Business Helps Resellers Increase Revenue with Dragon® Medical Practice Edition 2
5. ProcurePort announces the launch of http://www.woodbrowser.com, a unique reverse auction marketplace that brings buyers and sellers together in the lumber industry
6. AMS Closes $97.6 Million FHA 242 Insured Mortgage Loan for Construction of New Orleans East Hospital
7. Lorraine McLaren Joins Leading FHA Hospital Lender, AMS Health Care Mortgage Corporation
8. Texas House Approves Reverse Mortgage Legislation
9. Home Buyers Not Scared by Mortgage Rate Hikes
10. Study overturns common assumption about knee replacements in morbidly obese individuals
11. Charges for emergency room visits often based on incorrect assumptions
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... ... ... legally blind and certified personal trainer is helping to develop a weight loss fitness plan ... fix the two major problems leading the fitness industry today:, , ... They don’t eliminate all the reasons people quit their exercise program ...
(Date:6/25/2016)... TX (PRWEB) , ... June 25, 2016 , ... Austin ... of the American College of Mohs Surgery and to Dr. Russell Peckham for medical ... and highly effective treatment for skin cancer. The selective fellowship in Mohs Micrographic Surgery ...
(Date:6/25/2016)... ... 25, 2016 , ... First Choice Emergency Room , the largest network ... the Medical Director of its new Mesquite-Samuell Farm facility. , “We are pleased ... location,” said Dr. James M. Muzzarelli, Executive Medical Director of First Choice Emergency Room. ...
(Date:6/25/2016)... ... June 25, 2016 , ... On Friday, June 10, Van ... Wellness at Work award to iHire in recognition of their exemplary accomplishments in worksite ... 7th annual Maryland Workplace Health & Wellness Symposium at the BWI Marriott in Linthicum ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... Those who ... with these feelings, many turn to unhealthy avenues, such as drug or alcohol abuse, ... Marne, Michigan, has released tools for healthy coping following a traumatic event. , Trauma ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... , June 23, 2016 Research and ... Global Market - Forecast to 2022" report to their ... treatment method for the patients with kidney failure, it replaces ... fluid from the patient,s blood and thus the treatment helps ... and chloride in balance. Increasing number of ...
(Date:6/23/2016)... Research and Markets has announced the addition ... Chemical (Sugar, Petrochemical, Glycerin), Inorganic Chemical), Functionality (Filler, Binder, ... Forecast to 2021" report to their offering. ... excipients market is projected to reach USD 8.1 Billion ... forecast period 2016 to 2021. The ...
(Date:6/23/2016)... Roche (SIX: RO, ROG; OTCQX: RHHBY) announced ... BRAHMS PCT (procalcitonin) assay as a dedicated testing solution ... this clearance, Roche is the first IVD company in ... sepsis risk assessment and management. PCT is ... levels in blood can aid clinicians in assessing the ...
Breaking Medicine Technology: