Assumable

[Wyatt]

Are there any assumable loans out there, OR is that just a myth left over from old out of date tape courses?????
Wyatt

[kdhastedt]

There are some still out there.  The bad part is that they are so old that the people holding them have a ton fof equity in them.

Unless a loan has a specific 'due on sale clause' it is assumable.  Most VA loans are assumable but require the person that is assuming to substitute their VA benefits in lieu of the original holder's VA benefit.  This releases the original person's VA benefits to be used again.

Keith

[Wyatt]

That being the case, an investor can only assume a VA loan if he/she is a veteran? Additionaly an investor can only assume one VA note? Am I right?
Thanks for the come-back.
Wyatt

[kdhastedt]

No, you can often get the VA to allow the assumption if the new person has decent credit and it's an older loan (read higher interest rate!)...

Ask -- all they can do is say "no"!

Keith