Hampton Roads Real Estate Ramblings

Hello Hampton Roads, If you are waiting on the sidelines for rates to drop before you venture into the market, assumable loans may be your ticket back in! Assumable loans could be your secret weapon to unlocking those coveted 3% rates that many home owners (aka potential sellers) are sitting on.  According to a Redfin article , approximately 62% of home owners have rate below 4%. What's a Loan Assumption? An assumption is where the buyer assumes the current loan balance of the seller at the same rate and terms. The buyer who assumes the loan becomes solely responsible for it as the seller's name and liability is released.  This is different from taking the property "subject to" which is when the buyer pays the mortgage but the seller is still on the mortgage and remains responsible for it.  Types of Assumable Loans In general, government backed loans like FHA, VA and USDA are assumable whereas conventional loans are not.  When buyers assume a loan they still have to b