Assumable mortgages

New York

I was told that New York does not allow assumable mortgages, or that banks do “not do” assumable mortgages. True?


If I am working with a seller, who is willing to refinance their property to pay off their first mortgage and use the equity pay off- as my down payment as the buyer and then the seller agrees to hold a mortgage note…is this the same as assuming a mortgage?

Their original loan is paid off by seller, and I (buyer) assume the deed of trust.

Am I making any sense?


Am I making any sense?

Not much, but I’ll try to answer anyway ;D

There are VERY few assumable mortgages in place today. In fact, I think that the VA is the only one making them, and not sure about them at this point.

The way you are asking is confusing, but it sounds like that essentially, you are trying to do a Subject 2 transaction, which is taking the deed subject to the existing mortgage.


I’m doing nothing but learning right now.

I did my own homework and found that Freddie Mac does not recognize DOSC or at least does not enforce it. Lenders may service the loans, but Freddie Mac has acquired them, and alot of them in fact, over 160 M in New York and has over 28 B in its mortage portfolio.

Also, many ways around DOSC - including working with the lenders. Also depends on the state the prop’s are in.

I’m new to creative financing, so I’m learning. What can you tell me about what I was trying to say… :smiley: