Posted by David Alexander on October 25, 1998 at 16:24:20:
Always check the mortgage documents(ask him for them), you wouldn’t want to assume anything your not aware of. If it is an assumable VA( before March of 1988), it should be about 45 dollars.
David Alexander
Assuming a VA loan - Posted by Kevin-Baltimore
Posted by Kevin-Baltimore on October 25, 1998 at 15:04:30:
I am currently working on a deal where the owner is retiring from the rental business and wants to sell. He is willing to carry a second mortgage after the assumption of his first. Here is how it is structured:
$89,000 sales price
$58,000 Assumable VA loan
$1000 down payment payable in 90 days
$30000 second mortgage amortized for 40 years due in 5
My question is how tough is it to get assume this mortgage? He said that he has had it for about 10 years now. I know that some VA loans are non qualifying prior to some date. Please help with this one. It is a sweet deal with good cash flow and I have a contract on it. How much does it cost to assume a VA mortgage? I agreed to pay all the closing cost. The only trouble is how to raise the cash ($4000. I would appreciate any suggestions.
Thanks,
Kevin-Baltimore
Re: Assuming a VA loan - Posted by JPiper
Posted by JPiper on October 25, 1998 at 16:41:44:
Just to clarify, all VA loans are assumable. VA loans originated prior to March 1, 1988 are simple assumptions ie they don’t require qualifying. Cost is $45. VA loans after that date would require qualifying according to the VA guidelines as to income, credit, and employment. Cost can vary, but would approximate $500.
If the VA loan is post March 1, 1988 have you considered deeding the property to a land trust?? The owner will retain liability but has a 2nd mortgage to foreclose upon and take back title to the house if you default.
JPiper