FHA Assumable Mortgage – The Seller’s New Marketing Tool

FHA Assumable Mortgage – The Seller’s New Marketing Tool

FHA MortgagesSee on Scoop.itMidtown Atlanta Conversations and Condos

Mortgages from the F.H.A. and Department of Veterans Affairs have a little-known feature: assumability.

 

Thom Abbott‘s insight:

Homeowners with a mortgage insured by the Federal Housing Administration or the Department of Veterans Affairs should consider using their loan terms as a marketing tool when it comes time to sell. The FHA assumable mortgage may be the best marketing tool for the Seller!

Mortgage loans from both government agencies include a little-known feature known as assumability. In other words, the buyer of a home financed with an existing F.H.A. or V.A. loan may be able to take over, or assume, the seller’s loan, under the same terms, rather than take out a new mortgage.

During periods when interest rates are rising, homes offered for sale with an assumable, lower-rate mortgage may have extra appeal for certain buyers.

See on www.nytimes.com