Unlocking the Advantage of Assumable FHA & VA Loans
In today's high-interest-rate environment, homebuyers are looking for every possible advantage to secure an affordable mortgage. One often-overlooked opportunity is assuming an existing FHA or VA loan , especially those issued in the past few years when interest rates were at historic lows. An assumable loan allows a qualified buyer to take over the seller's existing mortgage, including its remaining balance, interest rate, and repayment terms . FHA and VA loans are generally assumable, but buyers must meet the lender's qualification standards, just like they would for a new mortgage. With interest rates currently much higher than they were just a few years ago, assuming a loan that carries a lower-than-market interest rate can be a game-changer for buyers. Here are some key advantages: Lower Interest Rate = Lower Monthly Payments - If the seller's mortgage has an interest rate of 3% or 4% , assuming the loan means immediate savings compared to today...