- This topic has 4 replies, 1 voice, and was last updated January 10, 2008 at 5:09 pm by .
- January 10, 2008 at 5:09 pm #255134Guest
I am not sure of what an assumable loan means exactly. I always thought that lenders run your credit and decide if you can have _______ % rate on the loan. If your credit is not good enough for a 6% or less loan, they may offer you a different rate, or deny you all together. On the other hand, you might get it if you are willing to put some of that $40,000 down. Personally, I would skip the “become a landlord” route myself. I have a full life already. Taking care of TWO homes would be too much work. I already have a family and a full-time career. I would sell it and put the money towards the new home. Herlean
wrote: Need help…
My boyfreind and I found a house we really want…I was approved with my income only since he is a full time student at 7.5% interest with $40,000 down as not to pay PMI. (I have a few dings on my credit score I am trying to fix) We found out that the home has an assumable loan and the seller is interested in this also..they are in a fix …lost job etc and need to get out of high payment. This home has a 5.65% rate.
Do you think if I have dings on my credit that they will let us assume the loan? Our payments will not be much different then if we put down the $40,000 with the 7.5% interest rate. We will be able to put the $40,000 in the bank until boyfriend is done with school (for a nice buffer) it happens to be with the same bank that our home loan is with now. If we are able to assume the loan we can keep our current property as we have already had 2
people ask if they can rent it…and then sell when the market is a little better…(although our area isnt hit hard) or we wont have to settle for less if we leave on market longer..(will sell better in spring/summer with nice yard and inground swimming pool)
Any suggestions? I am not sure what to do..I really want this house!!!! advice would be greatly appreciated!
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