My girlfriend and I are in a rent-to-own agreement for a house we love. The seller bought it with an assumable FHA loan, and we’re halfway through our lease. We expressed our readiness to buy, and the seller confirmed the loan is assumable. How likely am I to get denied for this assumable loan from 2019?
With 0 info from you, we can’t tell. An assumable loan is the same as a regular loan. You need to qualify for it; there’s nothing special about the loan itself.
I wasn’t sure if they had tighter restrictions or qualifications. I assumed they would rather me rewrite a loan at a higher interest.
I assumed a loan before. You just have to qualify for it, same as for a new mortgage. The biggest problem is paying the seller their equity in cash.
Then you just need to qualify for the loan. If your DTI meets the requirements, you should be okay. Your credit score is good enough to qualify.
Do you have the cash to cover the difference between the list price and principal owed and all closing fees?
Why are you paying a commission? You could just have a lawyer draw up the docs for a lot less.
That was our plan—to have a lawyer do the title work. I reached out to an agent for advice on the process.