What exactly is the difference between Assumable and Non-Assumable morgages?
Is there any way to turn a non-assumable morgage into an assumable morgage?
Why is a morgage non-assumable to begin with?
When you assume a seller’s loan, you take over the payments on his existing loan with no change in the loan terms. If a loan is not assumable, then you will have to get new financing to buy the property and payoff the seller’s loan.
Nearly all conventional loans are assumable. For mortgage loans originated in the past 18 years or so, assumption requires lender’s approval. The lender will use the same loan qualification standards for a loan assumption as they do for a brand new loan.
Non-conventional loans may or may not be assumable (even with qualification) depending upon the lender. An alternative to assuming a loan (even a non-assumable loan) is to leave the loan in place in the seller’s name and purchase the property Subject To the existing financing.
Check the Subject To forum for more information.