Assumable Loans: A Win-Win for Both Buyers and Sellers
Using an assumable loan is a win-win for both the buyer and seller.
If you are a home seller, have you ever considered maximizing your profit by taking advantage of an assumable loan? An assumable loan is a type of mortgage where the buyer can take over the seller's existing mortgage and assume the same terms, interest rates, and monthly payments.
This option is particularly advantageous for sellers who initially purchased their homes under government-backed loans, such as FHA or VA loans. If the interest rates were low at the time of the purchase, the buyer could assume the same interest rate, which can increase their buying power and allow them to offer more on the home.
"Make the selling process smoother for both you and the buyer."
Additionally, if the seller has a government-backed loan and is qualified to sell, another veteran or person qualified to buy an FHA loan could assume the loan, still have to qualify for the home, and take over the seller's interest rate. This type of loan is known as a "Super Bowl loan."
By taking advantage of an assumable loan, both the seller and the buyer can benefit. Since interest rates are currently high, buyers may be asking for concessions or a way to buy down their rate, which the seller can potentially offer with an assumable loan.
If you have a government-backed loan, an FHA, or a current VA loan, and are considering selling, reach out to us by phone or email to explore the assumable loan option. We look forward to hearing from you!
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