• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

How assumable mortgage loans work

December 11, 2022 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
How assumable mortgage loans work

If you’ve been thinking about buying a home and have been discouraged about interest rates you might be able to assume the seller’s mortgage. Think it’s too good to be true? It’s not. Here’s some information that you might need to know as it relates to assuming someone else’s mortgage when buying a home…

Let’s say you have an FHA mortgage right now at a historical mortgage rate of 3% that you picked up in the last couple of years. Your family has grown and now it’s time to sell the house. When you sell the house that loan gets paid off. The buyer of your home will need a new loan to purchase the home. If the buyer has the cash to assume the mortgage so they can bring in the difference between the amount owed and the purchase price.  The buyer of your home could do an assumption directly with your mortgage servicer.

How an assumption works on a VA mortgage

Similar to FHA loans, VA loans are also assumable. In order to get a VA loan you need to be an eligible military veteran. VA loans are only permitted for military personnel. VA loans require no down payment and no PMI. The assumption works the same as FHA. A VA mortgage assumption can be assumed by anyone including a non-veteran.  They would have to bring in the difference between the purchase price and the loan amount and they would be able to get a below-market interest rate.

The beauty of government loans is that they are indeed assumable. You work directly with the mortgage company holding the loan on the home you wish to purchase. This could be a handy tool to use when it comes to buying a home and getting an affordable mortgage payment.

Looking to buy a home? Get a no-cost quote on an assumable mortgage today!

 

 

Related Mortgage Advice from Scott Sheldon

  • Should I work with a mortgage broker or a mortgage lender?

    Depends-primarily on who you feel comfortable with. Let's be honest, this is the largest transaction…

  • How FHA Home Loans Work

    How do FHA Home Loans Work? FHA Home Loans are the most popular loan program…

  • Mortgage Rates Are Higher. Is an adjustable rate mortgage a better fit?

    This depends on a few factors: risk appetite- comfortable are you knowing that interest rates…

  • Buying New: What You Must Know About The Builder's Mortgage Lender

    New home construction communities continue to offer many incentives to people looking to upgrade their…

Filed Under: Uncategorized Tagged With: BAD CREDIT MORTGAGE, buying a house, buying your first home, cash out refinance, conventional mortgages, FHA Loans, mortgage comparison shopping, Santa Rosa mortgages, sonoma county refinancing

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window